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White Paper
Seven Key Components To Improved
Customer Experience
A Practical Guide to Creating Holistic Customer Experiences May 2013
that Drive Long-term Loyalty and Profit

Customer
Experience
Management
Contents
Introduction 01
A Holistic Approach to Optimizing Customer Experiences 02

1. Establish and Maintain Executive Buy-In and Support 02

2. Define a Holistic Customer Strategy and Vision 02
3. Prioritize Key Customer Touch Points
03
4. Design from the Customer’s Perspective 04
5. Create a Customer-Centric Organization 05
6. Test, Measure, and Learn
05
7. Prepare the Organization for Change 06
With Customer Experience Management, Companies
Gain a Competitive Advantage 06
References 07
Are You Ready? Take this Quiz. 07
About Hitachi Consulting Corporation 08
About Hitachi 08
 The
differentiators
which separate
companies
now are the
experiences they
create for their
customers.

Introduction
Success in today’s highly competitive global Companies that recognize the importance of Given the volatility in the marketplace, there is
marketplace requires more than simply Customer Experience Management (CEM) and no better time to optimize the experiences
delivering quality products and services. are proactive in their efforts, realize significant your customers have each and every time they
Businesses know that no matter how good revenue and reputation benefits. In a study by interact with your organization. Our Seven
their products and services are, they will most Forester Group, 90% of North American firms Keys to Improved Customer Experiences
likely become commoditized in a relatively view customer experience as important or provide the structure, processes, and tools any
short period of time. What’s more, the global critical to their plans and 80% of firms would company can use to proactively understand
online marketplace provides customers with a like to use customer experience as a form of their customer experiences and implement
greater number of choices and unprecedented differentiation. All of our research leads to CEM changes to improve them. This ability to be
access to information, thus empowering them as a critical piece of a companies’ strategic “market responsive,” and know how to
to shop for what is most important to them plans. respond quickly and effectively to market
– be it service, price, brand, or any number of changes, is an important competitive
factors. The differentiators which separate advantage.
companies now are the experiences they
create for their customers.

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A Holistic Approach to Optimizing
Customer Experiences
Customers view their interactions with a Our Seven Keys to Improved Customer
company holistically, yet most organizations Experiences help transform an organization
force customers to navigate the internal by putting customers first in every aspect of a
organizational model through complex company’s business—from product
websites, sales processes, and customer development and marketing to sales and
support. Customer- centric companies must customer service. By focusing on the customer,
be willing to look at and address the end-to- every aspect of a company’s business can be
end customer experience – including the optimized to have the greatest impact on the
related people, processes, and tools. customer experience and ultimately, the
company’s bottom line.

1. Establish and Maintain Executive Buy-In

and Support
Defining and implementing customer- Continual executive support and buy-in are
focused strategies are far more dependent on necessary to give CEM the weight it needs to
people than infrastructure. Leadership must succeed in an organization. Employees will
set the priorities and strategic direction for begin to change their own behavior only when
customer strategies and reinforce its they observe senior leadership persistently
commitment and involvement in related demanding customer-focused information
efforts. We agree with the Harris Interactive and using it to make key decisions.
report that states, even in a negative economy,
customer experience is a high priority for
consumers, with 60% often or always paying
more for a better experience.

Better Data
Analytics

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2. Define a Holistic Customer Strategy and Vision
Our experiences with CEM initiatives show that ■■ Journaling: Journaling by front-line technology allow interviews and focus
a customer strategy and vision will only be as employees and customers is a powerful groups to be effectively managed online as
comprehensive as it is inclusive. Companies tool for gathering deep insight through well, which can reduce the time and cost to
that take the time to develop cross-functional, observation and conversation that is often facilitate.
cross-organizational teams have been the not captured in systems. Insights such as
most successful in envisioning and the reason for engaging with a company, ■■ Unstructured Data: Companies today
implementing more robust customer how customers feel about steps in a specific have access to an untold amount of
strategies and vision. A comprehensive process that they may find confusing and/ customer data through a variety of
customer strategy creates the guiding or unnecessary, and suggestions for channels such as blogs, online forums,
principles for any customer-facing initiative by experience improvement, etc. wikis, mobile, call centers, etc. However,
articulating the philosophy that should most companies have yet to determine how
permeate and manifest across any customer ■■ Personas: Think online dating profiles! to exploit that data. Unstructured data is an
touch point. Without it, companies run the risk Personas help bring customer segments to embarrassment of riches, so to speak.
of having their reputation defined by the life – or, they can be an ideal way to begin Companies that make the effort to identify
aggregation of the inconsistent experiences creating informal customer segments if the most relevant sources of customer
inflicted on customers. none currently exist. Personas are created insight, understand the data, and analyze it
by leveraging data from all potential in conjunction with structured customer
Customer insight and intimacy are needed to sources – front-line employees, partners, data from internal databases and CRM
develop a meaningful customer strategy. databases, etc. Personas provide rich systems, will have the most comprehensive
There are many well-known ways to gather perspectives that expand beyond standard understanding of their customers.
customer insights, but we place the greatest demographic data into personal
value on two often under-utilized sources – preferences, skills, interest, hobbies, buying
the customer themselves and employees or behavior, etc.
partners who have direct interaction with
customers. We have used the following tools ■■ Customer Interviews and Focus Groups:
to uncover valuable “voice of the customer” Interviews and focus groups are effective at
insights, which are then used in strategy quickly understanding customers and
development efforts: perceptions of your company. Advances in

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3. Prioritize Key Customer Touch Points
Customer-focused initiatives always come which experiences to address in what order is attention to the overall processes customers
under scrutiny for immediate return on an effective tool to set expectations with are asked to follow, interaction with
investment. Tough economic times make executives as well as to the broader employees, and the physical environment that
these investments even more difficult to organization. For example, if most customers make up the overall customer experience.
sustain. The companies that are most interact with your organization through the
successful are investing in customer strategies company website, that may be one of the first
in small increments. touch points to assess and improve.

Rather than ‘boiling the ocean’ and taking on Benchmarking your company against the
more than can be reasonably addressed, competition – or other best-in-class
companies should identify and tackle the companies – is another way to identify
customer touch points with the highest high-value customer touch points that should
impact on customer satisfaction. Making be improved. When benchmarking, ensure the
incremental improvements toward the analysis expands beyond pure statistics,
long-term customer vision will create tangible because great stats do not guarantee a
results that will lend credibility to customer- positive customer experience. Pay close
focused initiatives. A roadmap that outlines

4. Design from the Customer’s Perspective

Incorporating the voice of the customer into This information is often surprising, as most customer pain points. While the starting point
programs and processes is critical, as most companies design processes from the inside of future-state customer experience process
organizations do not intuitively know what out, with little regard to the impact on the maps will be the customer, it is important to
experiences their customers want and expect. customer. The primary focus of current-state include internal processes and the supporting
The result of a survey emphasizing this point customer experience process maps should be infrastructure at this point to ensure the
identifies a huge disparity between a on the customer, not the internal processes or future-state experiences can be realized. It’s
customer’s perceptions of receiving a superior infrastructure that supports the experiences. also important to make sure future-state
experience (8% vs. the company’s perception The value of mapping current-state customer experiences are connected from one touch
that actually provided the experience 80%). experiences is to identify “critical impact point to the next and consistent across all
One excellent tool used to both understand points or moments of truth” – key touch points channels – online and offline.
current customer experiences and design new that matter most to customers.
experiences is Customer Experience Process
Mapping. Detailed current-state customer Once the current-state is understood and the
experience maps highlight all the steps a “impact points” have been identified, a plan
customer goes through when interacting with can be created that aligns with the defined
a company. customer strategy and vision to address

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5. Create a Customer-Centric Organization
All employees within an organization, not just ■■ Are employees provided with the training
front-line employees, are responsible for required to build the knowledge, skills, and
delivering experiences that delight customers. behaviors that will enable them to
It is critical for every employee to understand successfully perform in the future-state?
the role they play and feel enabled to deliver
experiences that align with the defined ■■ Are employees empowered and given the
strategy and vision. Consider the following: freedom to make real-time decisions to
positively impact the customer experience?
■■ Do hiring processes ensure candidates are
screened for the right customer experience ■■ Are the right incentives and rewards in
attitude and aptitude? place to encourage and recognize desired
behaviors?

6. Test, Measure, and Learn

Customer experience management initiatives Therefore, market responsive companies have adequately assess and refine their strategies to
should be approached with what we call a a competitive advantage if they can better align with desired results.
“test and learn mentality” because optimizing continually assess customer experiences to
the customer experience is just as much an art make certain they are still relevant and are There are effective measurement tools and
as it is a science. Companies must begin to driving the desired behaviors and perceptions. techniques, which provide a well-rounded
make informed decisions about how to Many organizations fail to realize that the picture of a company’s success in its customer
engage with their customers based on the assessment of a customer-oriented strategy strategies and overall ability to increase the
qualitative (unspoken) and quantitative requires the introduction of metrics often long-term value of its customer base. Such
(actions) data. different from routine financial practices. measurements include retention rates,
frequency of customer purchases or visits, net
Prior to implementing any customer Consequently, companies are struggling to promoter scores (NPS), annual spend/average
experience changes, clearly articulate the justify long-term investment in customer ticket price, and valuation of word of mouth.
expected benefits and develop a strategies because the impact to the
measurement plan that will enable your enterprise is not readily apparent using
company to evaluate whether the expected existing financial measures. However, “According to Peppers and
benefits were realized. If the desired results according to Peppers and Rogers, 81% of Rogers, 81% of companies
were not realized, be willing to continue companies with strong capabilities and
refining the process. Not achieving the desired competencies for delivering customer with strong capabilities and
result should be viewed as vital learning that is experience excellence are outperforming their competencies for delivering
needed to incorporate into future competitors.
enhancements. Equally vital to the process is
customer experience
the ability to recognize that demands in By consistently marrying customer experience excellence are outperforming
customer experiences shift as companies and strategies and initiatives with appropriate their competitors.”
customers mature. financial and non-financial metrics, firms can

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7. Prepare the Organization for Change
Transforming into a more customer centric ■■ Organizational Landscape: Each ■■ Communication: As an organization goes
and “market responsive” company is a journey, organization is unique. It is therefore through a transition, it is critical to deliver
not a destination. Companies that take this important to assess the current the right message to the right person at the
journey will often undergo significant cultural organizational environment, develop the right time.
changes as the fundamental nature of the appropriate change management
company shifts. The impact of this change on approach, and build the infrastructure for ■■ Learning: It is important to build the
an organization should not be overlooked. sustainable change. knowledge, skills, and behaviors to enable
Study after study (and experience after individuals to successfully perform in the
experience) shows that new strategies, ■■ Leadership and Stakeholder future state.
initiatives, and/or programs often fail due to an Commitment: Executive buy-in and
insufficient focus on organizational change support is one of our key success factors, as
management (OCM). noted above. Executives often need to be
coached and armed with the resources they
Hitachi Consulting believes there are four key need to guide their teams through
disciplines that must be addressed when individual and organizational transitions.
leading a company through change:

With Customer Experience Management,

Companies Gain a Competitive Advantage
In today’s highly competitive and There is no better time than now to begin Employee hiring and management practices
commoditized world, companies need a way developing mutually beneficial, long- term will need to be revisited to ensure employees
to differentiate themselves from the relationships with your customers. have both the orientation and empowerment
competition. What’s more, the economic to be customer advocates.
volatility is shrinking the customer base over As we like to communicate to our clients, “If
night. Customers are lost but not necessarily you’re not thinking about your customers, The journey will be long and imperfect—
to the competition. A company’s ability to someone else will”. The Customer Experience companies must be prepared to continuously
consistently deliver positive customer Maturity Monitor supports this perspective, listen, respond, measure, and refine along the
experiences is one of the last remaining which state the customer experience will play way. We hope you are ready to begin. The
competitive advantages. a critical or very important role in their return on investment, such as improved
competitiveness. customer satisfaction and loyalty, increased
While much has been written about CEM, only future buying potential, and a reduction in the
a limited number of companies have fully Our Seven Keys to Improved Customer cost to serve customers, will be well worth it.
incorporated it into their business practices. Experiences provides the practical guidance
necessary for any organization committed to
According to a McKinsey study, 70% of buying
experiences are based on how the customer
the journey towards customer centricity.
Executive sponsorship is required from the “According to a McKinsey
feels they are being treated. This statistic establishment of the customer strategy and study, 70% of buying
indicates there are significant opportunities vision through the implementation of experiences are based on how
for companies to differentiate themselves by customer-focused processes and programs
truly understanding and responding to the that are designed from the customer’s point of
the customer feels they are
individual preferences of their customers. view. being treated.”

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Are You Ready? Take this Quiz. References
■■ Do executives regularly meet with their 1to1 Media, a division of Peppers & Rogers
teams and with front-line employees to Group. http://www.1to1media.com
ensure their customer experience vision is Association of Support Professionals (ASP).
being carried out and reinforced Jeff Tarter, www.asp.com
throughout the organization?
SAS Institute Inc., and Peppers & Rogers
■■ Can your management team describe the Group. Customer Experience Maturity
day-in-the-life of your customers? Monitor, 2009.

■■ Do your employees all have customer McKinsey. The Customer Decision Journey,
experience goals that measure their 2010.
performance, regardless of the role they
play in the organization? Are they incented Forester’s. The State of Customer Experience,
or rewarded for customer-aware service? 2010.

■■ Are your customers’ experiences Harris Interactive. Customer Experience

consistent regardless of whom/how they Impact Report, 2010
interact with the company?
Harris Interactive. Customer Experience
■■ Are you retaining and gaining customers Improvement Study, 2011
and market share and can attribute this
gain to customer satisfaction and loyalty? Strativity, Michael (2006), Global Survey on
CERM, Strativity Group, Rochelle Park, New
■■ Do you have the technology touch points Jersey, info@strativitygroup.com
where your customers are making their
buying decisions and servicing
expectations?

■■ Do your regularly benchmark your

customer’s experience against your
competition?

■■ If you answered NO to most of the above

questions, then your company will benefit
from CEM best practices. Contact Hitachi
Consulting at www.hitachiconsulting.com

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 About Hitachi Consulting Corporation About Hitachi, Ltd.
As Hitachi, Ltd.’s global consulting company, Hitachi, Ltd. (TSE: 6501), headquartered in
with operations throughout North America, Tokyo, Japan, is a leading global electronics
Europe, the Middle East and Asia, Hitachi company with approximately 320,000
Consulting is a recognized leader in employees worldwide. Fiscal 2011 (ended
delivering proven business and IT strategies March 31, 2012) consolidated revenues
and solutions to Global 2000 companies totaled 9,665 billion yen. Hitachi is focusing
across many industries. With a balanced view more than ever on the Social Innovation
of strategy, people, process and technology, Business, which includes information and
we work with companies to understand their telecommunication systems, power systems,
unique business needs, and to develop and industrial, transportation and urban
implement practical business strategies and development systems, as well as the
technology solutions. From business strategy sophisticated materials and key devices that
development through application support them. For more information on
deployment, our consultants are committed Hitachi, please visit the company’s website at
to helping clients quickly realize measurable www.hitachi.com.
business value and achieve sustainable ROI.

Its client base includes 35 percent of the

Fortune 100 and 25 percent of the Global 100,
along with many mid-market leaders. With
offices throughout North America, Europe,
the Middle East and Asia, Hitachi Consulting
employs approximately 5,000 professionals
across 12 countries with delivery centers in
India (Bangalore, Pune and Hyderabad),
China (Guangzhou) and the United States
(Fargo, North Dakota) to offer global delivery
scale. For more information, visit
www.hitachiconsulting.com.

We make it happen. Better.

Hitachi Consulting is the business consulting capability of Hitachi, Ltd., a Dallas, Wellington
global technology leader and a catalyst of societal change. In that same
spirit-and building on its technology heritage-Hitachi Consulting is a 14643 Dallas Parkway
catalyst of positive business change, propelling companies ahead by Suite 800, DallasTX 75254
enabling superior operational performance. Working within their existing Tel: 214.665.7000
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Fax: 214.665.7010
unique approach-‘strategic pragmatism’- produces consistent, measurable
business results and delivers an exceptional consulting experience. www.hitachiconsulting.com
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