SAP Sapphire Understanding SAP Customer Experience
Transcript
[Music] hey it's chief thousand from the CTO advisor again we're creating more great content having more interviews with industry luminaries speaking of industry luminary I have Michael cracksman industry analyst and host of CX talk CX o x CX all talk so we're at sapphire 2019 and the qua qua Trix is the name the company yeah yeah eight point something billion dollars in its show yesterday and today they talked a lot about customer experience or the experience driven business si P is pretty good at coming up
with these these names for business decisions are you on the same page as si P and I'm on the same page as you on what this actually is okay so let's try to figure this out so first off yes they paid all of this money for Qualtrics and it is showing because this entire show sapphire is built around that with a little bit of touch of Hana because everything right right if it has a database is gonna have hot now the first thing is so there's
they're talking about X data and OData so customer experience data mixed with operational data I think the beginning point is customer experience I personally think customer experience is extremely important and I see it as the next evolution beyond digital transformation right so so we've now descended heavily into buzzword territory and so let me let it I won't say double-click I won't say will double click on okay all right so let me so but let me tell you why I think customer experience is so important first
off let's begin there so with digital transformation that the notion transformation says that we're shifting states we're right we're shifting from one thing to another and that transformation really is with digital transformation it's becoming comfortable an organization becoming comfortable with what that shift to digital requires what it implies not just for marketing but across the company exactly and a lot of that has to do with rethinking our operations based on what's best for the customer so with that in mind can we posit that if you're
you if you're either in the midst of digital transformation of you kind of come to the end of your digital transformation in your kind of steady state digitally transformed organization do we inherently get X data as an output of digital transformation or as X data it's something that we have whether we're digitally transformed or not it's a good it's a it's a really good question so I think what happens is this okay this is just this is my own is my own thought here that as
you're going through the digital transformation process you are naturally going to be placing the customer in the center thinking about your business model how does that how does your business model affect your customers right okay as part of that ideally you're listening to customers right you're not doing this in a vacuum exactly so if we use s AP language then you are in fact through the act of listening you're getting that X data that customer experience data now what I think this X data inside the
s AP world means with this whole big acquisition is to systematize it ok so rather than getting having a feel well yeah we're doing better with our customers and we can see for example our website engagement is high whatever metrics we've used in the past and evidently they don't work because the Quadra speak a most Asian said yesterday 80% of the CEOs think that they're meeting customer expectations and only 8% of the customers believe that they're getting the experience they think they should have so they're
obviously this old way of measuring customer satisfaction and customer experience isn't working according to SAT yeah by the way that stat I could be wrong but I believe because I once did a presentation on this I believe that it comes from bein going back years okay so this is that be a modern stat so but so I think it's an I think it's a real stat on an important stat but it's not necessarily a new concept right so so what s a and an s AP
called they call that the experience gap so I think the issue here is and this is kind of the crux of the matter okay so as an organization undertakes its operations all the various processes and so forth how can we in effect instrument our processes to get this feedback this experience feedback data on on a very large and broad scale right so it's not just a matter of looking at our website traffic or website engagement which is which is part of it but that's only a
tiny piece so it's really looking so for example it's looking at employee engagement okay your internal employees how happy are they how are they what are the signs that an employee is happy or an employee is not happy we call that employee experience we have a common taxonomy across CX experiences so you know a customer experience measurement in manufacturing should be the same as a customer experience rating and and arts and entertainment ideally um this is a fairly new concept to me so I'm I'm not
sure if I can stretch my mind to how that works have you kind of given that any thought of how that would work across industries even if so if we put science behind it can we apply it across industries as a PFD would tell us yes but what's your kind of gut my gut feeling is if they can do it it's a great thing right because then as that then you have if you have a common metric so you can say well the customer experience index
for employees is whatever right the customer experience for our manufacturing folks is whatever and our external customers and if you can somehow normalize it to a standard scale then it means that you can make comparisons across these very different domains very different industries even very different processes and have a meaningful comparison from a you know from a CXO perspective now you can measure CXO performance across organizations you know it's not just based off of financial performance but overall customer satisfaction you know there was that one
score in technology that we all use the and that promotores yeah the promoter scores like that what does that really even mean this that's a weird metric but you know it's an attempt at that to say okay this product you know Apple has a Net Promoter Score of X Oracle has a Nick next Net Promoter Score Y candles to equally be compared ya know it's a really good point I think and and that is the value of note well the two values of Net Promoter Score
is number one is what you were just saying you can compare it across companies across industries and they would say that it's that it's a great comparison of course on the other hand you're just asking one single question and how valid is it so it's a so we could say that it's a good general indicator and but now if you take this X data as si P is talking about that it goes from being a ideally the theory as they present it or the marketing is
and maybe it's true I haven't looked at it closely enough yet but the theory is that you now have this extremely rich set of data that is coming in from all kinds of different directions and you weave it into the operational data and so so we know that there's weakness with customer service in this area and our employees have an issue over here and this is correlated to our defect rate over here and our manufacturing manufacturing rate and that's affecting our ultimate customer satisfaction because there's
impact on delivery rates and so you you integrate this experience information with the operational processes and good things happen I know management consultants have to be really excited because this thing this you know this is a whole new discipline for them to heavily fake certain areas of weakness which are identify measurable and they can come and with their I have to tell you I've spoken with some management consultants here from big companies oh yeah they're very excited the frameworks and processes as a result so see
it's taught how to seek so taught how do we find it cxo talk.com that's really easy and do you tweet I tweet a lot at em Craig's Minh so Michael I really appreciate you joining you can find me on Twitter at CTU advisor you can find this another content at the CTO of visor comm thanks for tuning in and continue to subscribe to the channel like the pulse weather you see in this on LinkedIn or on YouTube like it follow us talk to you next CTO
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