The Customer in the Center of Digital Transformation

86 Pages·2016·7.05 MB·English

Detecon Management Report
dmr
Special CRM
The Customer in the Center
of Digital Transformation
Customer Loyalty in the Age of Social Media and Their Kin
Digital Megatrends Along the Customer Journey
Interview with Roman Becker, CEO at forum!
„The Lifeblood factor is Decisive“
Interview with Dr. Markus Messerer, Head of Corporate Strategy, Swisscom
The Customer at the Center, the Organization Fit for the Future
Measuring Customer Experience
Success Factor for Assuring Emotional Loyalty
CRM in the Digital Age
Opportunity and Challenge for the Automotive Industry
DMR_Special_Titelseite_CRM_NEU_11_2015.indd 1 25.02.2016 09:55:37
1 / 2016
The Customer in the Center
of Digital Transformation
Dear Readers,
it’s not a secret– digital transformation is proving to have fundamental, in part disruptive, potential
in virtually all industries. While there are enormous opportunities for new ways to do business
inherent in this potential, it also entails risks that can threaten the very existence of companies if
they fail to master digital transformation.
Successful companies – and this applies to the digital world in the same manner – focus on their
customers and the active management of customer relationships. Two aspects are relevant here. For
one, digitalization opens the door to new ways of interacting with customers, acquiring them for
the company’s products and services and securing their loyalty for the future. Second, the digitalized
environment is changing behavior and expectations of customers themselves. “Digital natives”
d emand new approaches to relationship management and expect radically different p roducts and
services, some of them requiring completely new digital business models.
Following the Detecon mission of “Leading Digital”, we advise our clients as they design their Joachim Hauk
d igital transformation journey and answer the question: How must customer relationship Managing Consultant
m anagement and customer interaction be developed further so that the opportunities offered by Lead Global Knowledge Community
d igitalization can be fully exploited and with an orientation to need; and how can the potentials for CRM, Sales & Service
the r ealization of a new quality in customer loyalty be leveraged?
In this issue of the Detecon Management Report, we will be taking an especially close look at these
topics:
• What “field of tension” between customers, companies, and society will be generated by digital
transformation?
• What digital megatrends will have an especially powerful impact on the management of
customer relationships?
• How can digital customer excellence continue to foster loyalty to the same degree as traditional
customer interaction and even enhance it specifically?
• What added value do “Big Data” and “Customer Analytics” create in the management of
customer relationships?
• How will the “Internet of Things” broaden the scope of customer interaction?
• What new opportunities for customer feedback management do digital channels have to offer?
• How will digital transformation change the requirements for the basic functions in customer
relationship management? Dr. Jürgen Padberg
• Why do a culture of service and the “lifeblood factor” of dedicated employees remain decisive Partner
in digital interaction channels? Lead Global Knowledge Community
CRM, Sales & Service
Detecon experts from “CRM, Sales & Service” are joined by external interview partners and guest
authors in describing many diversified cases from telecommunications, the automotive industry,
and the health care sector; their remarks will illustrate how different companies, ranging from
startups to multinational corporations, are tackling the challenges of digitalization in customer
relationship management.
We hope you enjoy reading these fascinating and inspiring articles!
1 Detecon Management Report dmr • Special CRM 1 / 2016
Digital Transformation
Content A Future in Paradise or Absolutism? 4
Customer Loyalty in the Age of Social Media and Teir Kin
Digital Megatrends Along the Customer Journey 8
CRM Tools in the Age of Digitalization
Mom-and-Pop 2.0 16
Interview with Dr. Markus Messerer, Head of Corporate Strategy, Swisscom
Te Customer at the Center, the Organization Fit for the Future 18
CRM in the Digital Age
Opportunity and Challenge for the Automotive Industry 26
New Mobility Services
Turning from Car-maker into Mobility
Service Provider Energizes CRM 32
Interview with Juliane Zielonka, CEO Die Artverwandten GmbH
“Digital Health Care: Detecting Illnesses at an Earlier Stage with
Smart Technology – for the Right Treatment at the Right Time” 36
Digital Customer Excellence
Imperative for Customer Satisfaction and Customer Loyalty 42
Masthead: Editor: Supervisory Board: Printing:
Detecon International GmbH Tilo Kusch (Chairman) Druckerei Chmielorz GmbH
Sternengasse 14-16 Ostring 13
50676 Köln Executive Board: 65205 Wiesbaden/Nordenstadt
Germany Francis Deprez (CEO)
Dr. Jens Nebendahl Photos:
www.detecon.com Local Court Cologne HRB 76144 Fotolia
Interview with Alexandra Tymann, CFO Sixtyone Business
Digital Customer Service as a Mission 46
Measuring Customer Experience
Success Factor for Assuring Emotional Loyalty 48

Interview with Roman Becker, CEO at forum!
„Te Lifeblood factor is Decisive“ 52
Workforce Management (WFM) in Field Service
Make Your Customers Happy! 58
Social Walls and Dashboards
How Managers Listen to Customers in Real Time 62
Megatrend Internet of Tings
No Longer in Its Infancy 68

Big Data in Customer Relationship Management
Instilling Trust by Generating Added Value for Customers 74
Analogos-Digitalis – Transformation in the Communications Industry
Education Is Still the Key 80
3 Detecon Management Report dmr • Special CRM 1 / 2016
Digital Transformation
A Future in
Paradise or
Absolutism?
4 Detecon Management Report dmr • Special CRM 1 / 2016
Digitalization is the phenomenon of our times. “Always connected” transpiring around it. At the beginning of the 2000s, huge numbers
– the possibility of being connected at any time, anywhere – is of dissatisfied Dell customers made use of social channels and other
p ermeating and changing virtually every area of our personal and platforms to give vent to their anger. “Dell Hell” entered history
working lives. The Internet makes it possible. Every minute, about books as the first genuine “shitstorm” and ultimately led to a
four million search queries are submitted to Google, about 300,000 d ramatic plunge in the company’s earnings. Dell, however, succee-
tweets appear on Twitter, 14 million WhatsApp messages are sent, ded in turning things around and is today a textbook example of
and 72 hours of video material are uploaded onto YouTube (Source: the right way to handle imminent or acute ”shitstorms”. Other
Statista). These figures speak for themselves. e xamples illustrate the reverse side of this coin. About 700,000
users misused the social network Facebook for tests and
Digitalization brings people and technology closer to- m anipulations for scientific purposes without being noticed
gether. The “Connected Car” is far more than just a means of ( Source: http://www.forbes.com). Millions of users of Sony’s
transportation; it is a transmitter, receiver, and conveyor of data. P layStation were affected by the theft of data caused by hackers
The vision of the self-driving vehicle has become a very real and (Source: http://www.dailymail.co.uk). Samsung itself warned its own
concrete scenario – and not only since yesterday. Technology com- customers that the brand’s smart TVs have functions that can
municates with technology, from “machine to machine”, without i nvade their private sphere (Source: http://www.dailymail.co.uk).
any human input. This development is progressing at a b reathtaking
pace. In 2011, about five billion people were digitally connected Digitalization makes many imagined things feasible.
around the world; in 2020, another approximately 50 billion The right question is not so much whether, but when. Naturally,
m aterial objects will be interconnected (Source: BDU 2015). The there is only a thin line between opportunities and risks in this
importance of the computer as a device is on the decline because it d evelopment. The rapid growth in the monitoring of health clearly
is being replaced by other “intelligent” devices. We have arrived at illustrates this ambivalence. The numbers of digital health care
the Internet of Things. p roducts such as digital insulin pumps, smart glasses, pill cameras,
or digital blood pressure monitors have already become
Is digital transformation a synonym for a better quality of life? Or o verwhelming today. What all of these applications have in
are we moving in the direction of digital absolutism based on the c ommon is the promise of improved health and fewer illnesses in
scenario of the transparent society? Opinions diverge widely the future. Medicine and preventive health care become persona-
between digital enthusiasts and pessimists. We have not yet found a lized through their use, and treatment with medicines can be even
definitive, final answer to the question of whether the opportunities more closely adjusted according to each individual’s requirements.
or the risks are greater for society and business. Erik Brynjolfsson, Sometimes illnesses can be diagnosed at an earlier stage, reducing
co-author of the book “The Second Machine Age”, which has been the risk of their further advance. The transparency resulting from
very well received and was the winner of the award for the German such extensive monitoring along with the more intensive and
Business Book of the Year in 2015, pulls observers dreaming of a r egular preoccupation of individuals with their own health,
future paradise back down to earth: “Robots can’t even pick up a h owever, can also foment fears of nascent illnesses – the hypochon-
pencil or clean a kitchen” (Source: Handelsblatt). driac effect. The innumerable opportunities of digital health care
could stimulate an excessive form of self-optimization. The misuse
One thing is undisputed, however: the diversity of new oppor- of dietary supplements, for instance, could itself lead to illness. This
tunities of transparency, connectivity, and collaborative enhanced transparency could also benefit third parties such as
co-determination. Consumers can benefit immensely from i nsurance companies and banks when they are determining the
trends such as patient monitoring in the health care sector, life style terms and conditions of life insurance policies or making decisions
computing with the aid of augmented reality, sleep monitoring, or about the granting of loans – to the detriment of the affected people
athletic self-optimization using digital fitness coaching, yet at the in borderline cases.
same time improve their position as customers by increasing their
influential input. In only a few fractions of a second, information It is absolutely correct to speak of digital ambivalence, and
can be shared with an unlimited reach through social networks, not only from the perspective of consumers. Thanks to big
communities, or blogs on the Internet, and the impact on recipi- data,generating a complex base of data, companies in all sectors
ents’ opinions can be positive as well as negative. understand their customers better and better and can address them
more individually. CRM systems are the treasure chest of this valu-
Companies in all industries are forced to respond. They must deal able and exploitable information and open the door to personalized
with the changes in communication mechanisms, whether campaigns to heighten loyalty and customer value. At the same
they want to or not. The IT corporation Dell in the US is one ex- time, this treasure chest inevitably turns companies into highly
ample of what can happen if a firm remains ignorant of what is c oveted targets for hackers and industrial spies. Digitalization has
5 Detecon Management Report dmr • Special CRM 1 / 2016
also paved the road for the invasion by third-party systems. Laws and regulations do not protect from misuse and unfair
N umerous examples reveal the many and diversified risks from out- actions. Nevertheless, they are an indispensable legal framework
side attacks on their data security to which companies are vulnerable. within which digitalization must continue its development. If
Espionage is reaching an unprecedented level of activity. Hackers d igitalization is to benefit everyone, however, it will require further
were able to access the confidential data of journalists working at regulatory control and principles on this basis.
the New York Times and the Washington Post for several months
before being noticed. At Sony, 100 million customer data records It is of the greatest importance that expansion of powerful broad-
were stolen. Some 250,000 user accounts and passwords were band capacities into full-area coverage be realized in the middle
h acked at the social network Twitter; LinkedIn suffered a breach of term. In this context, equal opportunity means that every
a staggering 6.5 million accounts. p erson must have the chance to access high-performance Internet.
This access must not be restricted to people living in the densely
The political establishment as the third active party populated urban areas. Achieving this goal will require politicians,
and its role in this story must not be forgotten. It also finds itself on regulatory authorities, and telecommunications providers to act
the horns of the digital dilemma. The expectations of full-area t ogether as one.
c overage with broadband capacity sufficient to handle the immense
increases in data volume both now and in the future are high. “On- Besides the general legal conditions, there is the need to establish a
line” is more or less perceived as an unwritten basic right. Yet the sense of ethics in working with the Internet, social
general public also demands regulatory intervention and controls, media, and personal data. The transparency on the I nternet
especially when the issue at hand is protection from data misuse must be used to implement a code that censures any activities
and invasion of the private sphere. Politicians are supposed to t aking place outside of this ethic corridor and causing harm to
e nable, but at the same time regulate and curb risks. others. Anyone engaging in such activities must be made clearly
aware that such behavior is unacceptable to the Internet community
One study shows that the ambivalence of digital transfor- and will, if serious enough, be sanctioned. This applies to compa-
mation is reflected very clearly in people’s perception (Source: nies as well as to aberrant users.
s urvey by Bitkom Research):
Trust is becoming a decisive loyalty factor in the relati-
People acknowledge the fundamental transformation! onship between companies and their customers. Compa-
• I n the opinion of 82% of the people surveyed, the changes in nies that give the impression they are not trustworthy in their treat-
business and society taking place because of digitalization are at ment of their customers and their customers’ data may feel the
least as far-reaching as the upheavals of the Industrial impact of this failure when customers terminate their relationships.
Revolution. In contrast, companies that take legal requirements seriously and,
moreover, work on generating “digital trust” with their customers
Opportunities and risks are recognized! will enjoy long-term benefits. When they anchor this trust as an
• S eventy-five percent say that digitalization is threatening jobs in elementary component of the customer experience, they lay an
traditional sectors. i mportant foundation for the long-lasting success of their digital
• S eventy-one percent believe that digitalization is creating new jobs. business models and set themselves apart from the competition
• A slight majority of 65% believe that digitalization offers more with respect to a sensitive and decisive point. As tempting as it
o pportunities than risks. might be for companies to use the digital tracks left behind to con-
struct a digital twin of the customer – the customer and the digital
People expect more engagement from the political twin are never identical. Genuine customers can always surprise
establishment! you and are (hopefully!) less predictable than generally implied.
• S ixty-four percent say that politicians should do more to foster
digitalization. The important principle of personal responsibility applies to
• T wenty-seven percent are of the opinion that politicians need to users today and will continue to apply in the future. Anyone
throttle digitalization. wishing to take advantage of the innumerable digital opportunities
and benefits must also be willing to divulge information. The two
So how should digitalization be guided in the future so that this elements have a proportional relationship to each other.
digital dilemma can be overcome as successfully as possible? How N evertheless, anyone who discloses information must be given the
can we realize a positive scenario that does not result in the domi- absolute assurance that the data will always and strictly be used in
nance of digital absolutism, but enables everyone involved to bene- accordance with given consent. In certain cases, this can also result
fit from the opportunities? in disadvantages – but they must be visible and predictable. When
6 Detecon Management Report dmr • Special CRM 1 / 2016
people sign up for a bonus system offered by their health insurer
and based on digitally collected health data of the policyholders,
they may profit from the advantage of a bonus payment by leading
an exemplary, healthy life style. On the other hand, a life style that
is more likely to result in poorer health values may trigger a penalty,
e.g., a higher premium.
The demand for transparency often appears in the discussions
about the realization of digitalization as a magic formula, almost a
panacea. Transparency has become a paradigm of digitalization
with almost exclusively positive connotations – even if the algo-
rithms that are at the heart of many business models are often
anything but transparent. Yet there are many customers who would
consciously like to retain the magic of secrets, the value of the am-
bivalent, and the doubt as well as charm of hidden inefficiency. A
completely transparent world would be a “poorer world” for them,
one without digital surprises. In other words, a residual lack of
transparency is quite often desirable because it maintains suspense.
The trust described above is the more important advisor at this
point.
Conclusion: Digitalization will not produce a paradise without
end. Nevertheless, it has many new opportunities and innovations
in store. It will not, however, be able to replace human thought and
conduct in awareness of personal responsibility – this human
e lement, including all of its unpredictability, will always remain
a utonomous. We will not see digital absolutism because the digital
world is regulating itself more and more strictly in addition to the
legal conditions. While misuse cannot be prevented in isolated
c ases, it will certainly never have a great future. Erik Brynjolfsson AUTHORS
and Andrew McAfee, MIT professors and the award-winning
a uthors of “The Second Machine Age”, also believe there are more Andreas Penkert
opportunities than risks: “A machine doesn’t have the slightest idea is Managing Consultant and advises clients from
of what common sense is.” This is only one of the reasons why various industries on the subjects of digital trans-
d igital optimism can assuredly carry the day. formation during the customer journey, social
m edia performance, and organizational and process
m anagement. He is the author of a number of pub-
lications and studies.
Sascha Krpanic
is Consultant focusing on the areas of digital s ervices,
omni-channel management, competition and market
analyses, and corporate strategies.
7 Detecon Management Report dmr • Special CRM 1 / 2016
Customer Loyalty in the Age of Social Media and Their Kin
Digital Megatrends Along
the Customer Journey
Trends such as big data, mobile solutions, or social media are
r evolutionizing traditional customer relationship manage-
ment. Detecon employs “Customer Journey Trend Mapping”
m ethodologies to support companies in the development
and realization of innovative digital concepts along the cus-
tomer journey as a means of intensifying customer loyalty.
In the last several years, digital technologies have led to more
than just the development of new, innovative business models;
they have also brought about major changes to the customer
interfaces in existing business models across all industries. It is
becoming increasingly important to expand existing customer
touch points by adding digital channels and to foster an even
more individual relationship to customers. Anyone who neg-
lects to do so runs the risk of new players moving in and taking
the position of digital intermediary right at the customer
interface.
This setting prompted Detecon to prepare a comprehensive
portfolio of digital trends that are of significance for customer
loyalty management. In close cooperation with the trend-scou-
ting experts at the Detecon Innovation Institute in San Francisco
we have developed innovative concepts that can help companies
strike out on new paths and work up concepts for the integration
of digital media and channels.
8 Detecon Management Report dmr • Special CRM 1 / 2016
Mobile First Design
Location-based Services
Smart Home Assistant
Wearable
Technology Mobile Wallet/Payments
Sensors
Smart Home/
Smart Building
Connected
Mobility
Enterprise Listening
Social Amplification
Crowd Intelligence
BIG DATA
Sharing Economy
Data
Analytics
Predictive
Analytics
Meshed Services
Machine Learning
Shared Login
Data
Visualization Smart Triggers
9 Detecon Management Report dmr • Special CRM 1 / 2016
SOCIAL
INTERNET OF THINGS
OPEN APIs
MOBILE