Tealeaf Customer Experience Executive

Roundtable
February 4, 2010

© 1999 - 2010 Tealeaf Technology, Inc. All rights reserved. Confidential and Proprietary.
Today’s Speakers

Bruce Temkin
VP & Principal Analyst
Forrester Research

Steve Robinson
CEO
MandMDirect.com

Joe Megibow
VP, Gl
VP Global
b lAAnalytics
l ti & O
Optimization
ti i ti
Expedia.com

1 © 1999-2010 Tealeaf Technology, Inc. All rights reserved. confidential and proprietary.
Today’s Agenda

• Introductions
• Opening Remarks
• Panelist Case Studies
• Panel Roundtable Discussion
• Closing Remarks

2 © 1999 - 2010 Tealeaf Technology, Inc. All rights reserved. Confidential and Proprietary.
Tealeaf Executive Roundtable
Webinar
Bruce D. Temkin
VP & Principal Analyst
Forrester Research
Februaryy 4,, 2010
 The core insight…

4 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

 The core insight…

“Do what you do so

well that they will want
to see it again and
bring their friends.”
friends.
- Walt Disney

Sources: Wikipedia
5 Entire contents © 2009 Forrester Research, Inc. All rights reserved.
 How important will customer experience be in your
company's
company s strategy in 2010?

Base: 141contents
6 Entire North American
© 2009 companies
Forrester Research, Inc. All rightswith $500 million or more in revenues
reserved.
Source: Forrester's Q4 2009 Customer Experience Peer Research Panel Survey
 How would you describe your firm's goal for customer
experience?

Base: 141contents
7 Entire North American
© 2009 companies
Forrester Research, Inc. All rightswith $500 million or more in revenues
reserved.
Source: Forrester's Q4 2009 Customer Experience Peer Research Panel Survey
 Customer experience affects the bottom line

Customer experience Customer

laggards experience leaders
(B tt
(Bottom quartile)
til ) (T quartile)
(Top til )
Willingness to buy
more products

Reluctance
to switch

Likelihood to
recommend

8 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Source: North American Technographics® Customer Experience Online Survey, Q4 2008
 Customer experience affects the bottom line

Customer experience Customer

laggards experience leaders
(B tt
(Bottom quartile)
til ) (T quartile)
(Top til )
Willingness to buy
more products -7.7%
7.7% +6.7%
6.7%
Reluctance
to switch

Likelihood to
recommend
(P
(Percentages
t are relative
l ti tot industry
i d t averages))

9 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Source: North American Technographics® Customer Experience Online Survey, Q4 2008
 Customer experience affects the bottom line

Customer experience Customer

laggards experience leaders
(B tt
(Bottom quartile)
til ) (T quartile)
(Top til )
Willingness to buy
more products -7.7%
7.7% +6.7%
6.7%
Reluctance
to switch -7.6%
7 6% +8 2%
+8.2%
Likelihood to
recommend -8.2% +8.4%
(P
(Percentages
t are relative
l ti tot industry
i d t averages))

10 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Source: North American Technographics® Customer Experience Online Survey, Q4 2008
 Customer experience affects the bottom line

Customer experience Customer

laggards experience leaders
(B tt
(Bottom quartile)
til ) (T quartile)
(Top til )
Willingness to buy
more products -7.7%
7.7% 14.4%+6.7%
6.7%
Reluctance
to switch -7.6%
7 6% 15.8%
15 8%+8.2%
+8 2%
Likelihood to
recommend -8.2% 16.6%+8.4%
(P
(Percentages
t are relative
l ti tot industry
i d t averages))

11 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Source: North American Technographics® Customer Experience Online Survey, Q4 2008
 Customer experience affects the bottom line
Annuall revenue change
A h ffrom a modest
d t shift
hift iin
customer experience for a $10 billion company

Buying
B i more
products $65 million
Reduction in churn
$116 million
Word of
mouth $103 million
$284 million
12 Entire contents © 2009 Forrester Research, Inc. All rights reserved.
 Forrester’s 2010 Customer Experience Index

13 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Source: North American Technographics® Customer Experience Online Survey, Q4 2009
 Top failures in Forrester’s customer experience self-test
P
Percentage
t off fifirms th
thatt agree with
ith statement
t t t

Base: 141contents
14 Entire North American
© 2009 companies
Forrester Research, Inc. All rightswith $500 million or more in revenues
reserved.
Source: Forrester's Q4 2009 Customer Experience Peer Research Panel Survey
Today’s Agenda

• Introductions
• Opening Remarks
• Panelist Case Studies
• Panel Roundtable Discussion
• Closing Remarks

15 © 1999 - 2010 Tealeaf Technology, Inc. All rights reserved. Confidential and Proprietary.
Customer Experience as a
corporate strategy

Steve Robinson
CEO M and M Direct
February 2010
 A little about M and M Direct

„ Revenue this year of nearly £110m

„ Well
W ll over 2
2m orders
d d
despatched
h d
„ Over 1m web visits a week
„ 6 most visited UK clothing website
„ 2nd biggest
gg UK clothinggp
pure p
play
y
„ 2010 winners of Draper’s Best UK Website
„ 22 years of growth
„ 2 years of IT transformation
„ £200m revenue goal
 Benefits Case

„ Fixing technical failures in the customer

jjourney
ourney
„ Alerting live problems and recovering from
them
th
„ Monitoring changes during a warranty
period
i d
„ Improving the customer journey to help
conversions
i
„ Analysis of shopping behaviour and
optimising
ti i i iincrementalt l sales
l
 Customer Experience

„ Can everyone
y who wants to access myy
online shop get in?
„ Is my full range on offer to them?
„ Can they easily find what they want?
„ Can they put those items in their basket?
„ Can they pay for them!
Tealeaf is a game changing piece of technology versus
store based customer experience

Store visits
Tealeaf takes the
Mystery shopper understanding of
these online to
Customer counters another level

Availability measures
Example – we are able to monitor customers
through the purchase process

We are able to identify

the customers who
have not completed
We can then drill down the list of customers at
all parts of the process
We can then step through the journey and
identify issues – even contact!
 What have we learned?

„ Try to get usage as “deeply” into the

business as possible
„ Ring
g fence the resource to aid qquick
implementation
„ Spot where it will add most to your
business and prioritise
„ Make delivering the benefits case a Board
issue
„ K
Keep the
th momentum t up!!
Site Conversion: Our Culture
Joe Megibow VP Global Analytics and Optimization
Joe Megibow, VP, Global Analytics and Optimization
Tools ≠ Knowledge or Value

Each on their own…
• Financial reports show impacts to transactions, but give little 
Financial reports show impacts to transactions but give little
indication of where issues are occurring
• Web analytic tools aggregated site usage stats but lacked 
detailed customer experience data and information on 
customer intent
• System logs and IT site monitors did not track details of 
System logs and IT site monitors did not track details of
customer experience issues
• Code logging required meticulous development efforts to 
identify and record every fork that could be exercised and it 
creates performance issues
• Customer feedback mechanisms were not adequate and were 
Customer feedback mechanisms were not adequate and were
not being monitored or acted upon
We could go weeks, even months, without 
g
knowing the extent of a customer issue
• Business would look at financial and analytics data 
and declare that a problem was occurring to IT and
and declare that a problem was occurring to IT and 
Development
• IT would look at their system logs and determine that 
IT would look at their system logs and determine that
everything looked fine
• Development would ask if the financial and web 
Development would ask if the financial and web
analytics tools were accurate thereby pointing the 
finger back at the business
A better way:  Combining the Voice of the 
( ) p
Customer (VOC) with actual site experience
• Gives context for customer experience issues
• Reproduces customer complaints you cannot recreate
Reproduces customer complaints you cannot recreate 
• Uncovers data and User Experience (UX) inconsistencies
• Identifies customer confusion areas
We transformed our organization to take 
g g g
advantage of listening to the customer insights
• Listening to the customer is ingrained into our culture
– All VOC comments are sent to all front line executives every day
– Each complaint is parsed out to the responsible group for resolving
• Built a team to analyze customer feedback, quantify any 
i
issues, and develop customer‐centric solutions.  They also 
dd l t ti l ti Th l
create tracking to help proactively identify customer problem 
areas.
• Created a cross‐functional, cross‐departmental team (User 
Experience, Marketing, IT, Development, QA, Product 
Management etc ) that meets weekly on customer issues
Management, etc.) that meets weekly on customer issues.
• Created a separate Development organization, just for site 
p
optimization
Example: Credit Card Declines

• 1000’s of users per day have their credit card 
d li d
declined.
• We started paying attention to customer 
feedback and dug into real user experiences.
• We knew we were driving thousands of calls 
to the call center.
Example: Credit Card Declines

• We found that many declines were related to 
address verification.
dd ifi ti
• We discovered that we had design issues that 
were regularly confused customers.
Example: Credit Card Declines
Example: Credit Card Declines

• We removed the Company field, and address 
errors nearly went away
l t

Address errors on the BD page

Example: Credit Card Declines

• Which resulted in a 1% increase in conversion 
f
from the page, and a significant reduction in 
th d i ifi t d ti i
calls.
We Continue to Invest in Customer Experience

• By adding discipline, process, proven execution, and sound 
measurement to our site conversion efforts we have:
– Expanded our Site Conversion development organization to more than 
25 dedicated analysts and developers.
– Taken ownership of several of the largest development projects for 
Taken ownership of several of the largest development projects for
2010.
• Tons of good will in responding to customer issues  and 
providing a better shopping experience
idi b tt h i i
• Winning cultural shift of listening to customers, 
institutionali ing analytics, and executing against what we
institutionalizing analytics, and executing against what we 
learn
Today’s Agenda

• Introductions
• Opening Remarks
• Panelist Case Studies
• Panel Roundtable Discussion
• Closing Remarks

36 © 1999 - 2010 Tealeaf Technology, Inc. All rights reserved. Confidential and Proprietary.
Today’s Speakers

Bruce Temkin
VP & Principal Analyst
Forrester Research

Steve Robinson
CEO
MandMDirect.com

Joe Megibow
VP, Gl
VP Global
b lAAnalytics
l ti & O
Optimization
ti i ti
Expedia.com

37 © 1999-2010 Tealeaf Technology, Inc. All rights reserved. confidential and proprietary.
Thank You

All participants will receive a copy of today’s slides, as well as a link

to today’s webinar recording.
recording

For Additional Questions:

Tealeaf: Julie Zisman – jzisman@tealeaf.com

Forrester Research: Bruce Temkin – btemkin@forrester.com

Blog: Customer Experience Matters
http://experiencematters.wordpress.com
p p p

MandMDirect.com: Steve Robinson – srobinson@mandmdirect.com

Expedia com: Joe Megibow – jmegibow@expedia.com
Expedia.com: jmegibow@expedia com

38 © 1999 - 2010 Tealeaf Technology, Inc. All rights reserved. Confidential and Proprietary.