Lecture 8 Flashcards
What is Experience Optimization?
• Ongoing process of understanding
the customer and providing the best
possible experience across all
touchpoints
• Leveraged to improve CX through
controlled experimentation
• Allows to vet and quantify the
impact of new ideas with real-time
customer data
Best experience varies depending upon the
audience, as people have unique interests, needs, and motivations
Firms should create a data-informed view of their customers (what motivates, delights, and engages them) to
define tailored, highly relevant, and engaging experiences that are connected across touchpoints
“Best experience” is
an aspirational but essential goal to ensure that businesses are continuously updating their understanding of the customers and improving CX
The understanding of the customer comes
naturally, but slowly. Customer’s preferences are
learned over repeat visits
Customers are “anonymous” at the beginning. Optimizers capitalize on
the opportunity to deliver relevant, targeted experience based on who the customers are and what they do.
This ensures the best possible experience for individual customers, and enables delivery of a targeted and personalized experience at scale.
EXO
Experience Optimization
Why is EXO Important?
- Studies have shown that customers are 5X more likely to make a purchase if they’ve had a great customer experience
- 78% of customers have abandoned a purchase due to bad customer experience
- 86% of customers will walk away from a company permanently after a bad experience
• A recent Walker study found that by 2020, customer experience, more than price or even product, will stand out as the key brand
differentiator
EXO Benefits
Expertise: deep theoretical and practical knowledge of your customers, partners, and prospects
Confidence: ability to make decisions based on real user data, relevant statistics, individual user insight, and behavioral analytics
Speed: capability to quickly implement those decisions based on real-time testing and live results
Ease of use: having the competitive advantage of providing your customers with better experiences utilizing intuitive design and functionality
EXO Process
Monitor analytics platforms for alerts into
UX or technical issues, and investigate
trends in user behavior (almost fully
automated)
Leverage session replays and customer feedback to gain a fuller understanding of
the problem. Use indepth quantitative analysis to investigate scale
Identify a straight fix, a hypothesis for a test, or an opportunity for personalization
EXO Elements
AB Testing
Multivariate
User Research
Analytics
Personalization
Process can be augmented by synchronously incorporating other
sources of data, and by delivering a wide array of experiences
EXO Core Capabilities
Online testing
Behavioral targeting
Recs
Online testing:
comparing how variations of customer interactions perform against a control group to determine the best treatment. It provides objective, data-informed guidance to help optimize the digital experience
Behavioral targeting:
delivering of personalized experiences to particular customer segments using rules or predictive algorithms based on events, business rules, interactions, etc…
Recs:
serving recommended experiences to digital visitors through analytical engines. It can include suggestions for related content based on business rules, machine learning
algorithms, or a combination of both.
Technology evolution forces businesses to
__ __ how to engage
customers
constantly re-evaluate
Devices expansion, customer expectations
evolution and changes in business practices
created a need to
innovate to capture audience’s attention and engagement.
Regardless of how the customer engages
with a brand, firms must consider
one cohesive view of customer interactions
Commitment to finding the best experience
for every touchpoint also requires
persistence in creativity and discovery
EXO Requirements
Multi-Channel Experience
Chief Customer Officer
Focus on Mobile
Don’t Forget to Analyze
Multi-Channel Experience:
multi channel brand presence with consistent customer experience
Chief Customer Officer:
CX relies on many departments, but your brand must have one person who is ultimately responsible for it
Focus on Mobile:
If your mobile customer experience isn’t excellent, then your CX needs some optimization
Don’t Forget to Analyze:
Big data is nothing without insight. Analyze your metrics to figure out where your CX is solid, and where it can improve
EXO Is Impacting Multiple Industries
Digital Advertising: Increase ad impressions, time spent on site, and engagement
Ecommerce: Increase RPV, AOV, and display relevant products to different types of visitors
B2B: Higher visitors to leads conversion, better nurture programs performance, and rapidly iterate through product development and enhancements
How Amazon’s Brand and Customer
Experience Became Synonymous
- Amazon is betting that Alexa and Echo will be the catalysts that drive consumers to interact with and ultimately purchase more with Amazon than ever before
- The smarter Alexa becomes at knowing your needs, preferences and behaviors, the better she is at delivering a seamless experience
- The better experience she delivers, the more indispensable she will become to consumers’ lives
Vodafone UK
Developed an interactive representation of its network performance with the objective of reducing related queries into call center and create a communication system. Before implementing, carried out extensive usability
studies to validate graphic design and EX
Results: • 40% ↑ in visitor traffic • 25% ↓ in network-related topics posted on the forum • 66% ↓ views of network-related forum topics • 54% ↓ in escalated queries requiring a customer call back • 13% ↑ in network related T-NPS
What is A/B Testing?
An experiment where 2 variants of a page are randomly shown to users, and statistical analysis is used to determine the better performer for a given KPI
How A/B Testing Works
- Identify a page to improve and create a modified version of it(ex: new headline or full redesign)
- Route 50% of your traffic to the original page (“control”) and 50% to the modified version (“test”)
A/B Testing Process
It can be divided in 5 steps:
- Determine Conversion to Improve
- Hypothesize Change
- Identify the Variables and Create Variations
- Run Experiment
- Measure Results
The Importance of A/B Testing
- Data-driven companies don’t just passively store and analyze data, they generate actionable insights through experiments
- Implementing well-executed and consistent A/B testing is fundamental to grow your online business
Companies have moved away from project-based approaches to
online testing and personalization
Centers of excellence have been created to
synchronize different approaches and optimize CX across the entire life cycle
68% of martech users value tools for
their integration and ability to work together as much as for the specific functionality they deliver
Digital Intelligence Architecture
- Merging of testing, behavioral targeting, and recs within advanced enterprise practices and vendor offerings
- Collects and manages customer interaction data and analyzes it holistically to inform processes and systems that optimize decisions and actions as well as digital customer experiences
Experience Optimization Platforms
Market Presence
Strategy
Current Offering
Market Presence:
enterprise customers and avg size deal
Strategy:
strength of vendor’s strategies, including product vision, execution roadmap, performance, support services and ecosystem
Current Offering:
strength of current offering across testing, targeting, recs and platform experience
Experience Optimization Platforms
Leaders: Adobe Target
Strong Performers: Optimizely, Evergage
