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CEB + CX Competitive Analysis & Growth Strategy Project

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Presentation Agenda Competitive Analysis Growth Strategies Next Steps Customer Experience Landscape

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Customer Experience Landscape

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Trends & Forecasts New trends in the CX market must be fully implemented or firms risk leaving millions behind 93% Global CEOs who said that CX improvement is a top priority this year2 Having almost 24/7 support is crucial for success3 Firms must have both online and offline capabilities4 CAGR: 17.3% (2014 – 2019) The CX market is set to double from $3.78BN to almost $8.5BN in 2019. 1

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Trends & Forecasts Mobile, metrics and emotions are the true drivers behind a memorable CX strategy Provide omni-channel service with a focus on mobile CX5 Insightful metrics that are simple but impactful are rising, especially NPS (“what are our scores, what do they mean, what is a clear action plan to improve/sustain our scores, etc.)6 CX strategies must focus on building up positive experiences for both customers and employees7

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BIG INSIGHTS Focusing on mobile, metrics and emotions will lead to more successful CX strategies To capitalize on the growing CX market, the best firms will enter as soon as possible Firms can differentiate themselves by offering online/offline solutions as well as support for customers and employees

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Competitive Analysis

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*A full list of the top 50 management consulting firms with a focus on CX consulting used in this project can be found in Appendix. A.2 Many CX consultancies exist* but a market leader does not, indicating a highly fragmented market

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While a market leader doesn’t exist, there are a few firms that continually hog the “CX spotlight” The top firms were categorized with the following criteria8 Brand recognition & reach LinkedIn Presence Awards Creation of a industry-changing methodology, organization or patent Using those criteria, the top 4 firms in the CX industry are below: The top firms are private companies so their individual market shares are unknown/unable to be calculated, meaning that the question “Who is the leader of these four” was not determined.

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Satmetrix NPX Bain & Company Co-creators of the Net Promoter Score system Global reach/recognition with 10+ years experience Created Bain’s Loyalty practice to educate firms about NPS Each market leader has unique strengths, which can be used to drive CEB’s future CX decisions Co-creators of the Net Promoter Score system CX thought leaders 10+ years experience in delivering NPS & CX related services

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Temkin Group Beyond Philosophy Pioneered proprietary methods of analyzing both the rational and emotional sides of CX CX thought leader Market leaders leverage their unique histories, members and value propositions to push ahead Co-created the Customer Experience Professionals Association (CXPA) Conducts annual research into the state of the CX industry CX thought leader

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BIG INSIGHTS The top CX firms have forward thinking team members that continue to push the CX industry forward (examples include: Creating revolutionary analytics systems, certification and professional institutes Travelling globally to speak/learn from the best, etc.) 8 4 Similarities Between the Top 4 Firms Proprietary information that changed the CX industry 10+ years of experience Strong brand recognition Ability to expand globally

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Growth Strategies

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Potential growth strategies are many but there are three frontrunners to drive CEB’s CX growth Product Innovations Brand Improvements People Acquisitions Introduce new CEB tools that capitalize on trends & forecasts in the market Ramp up brand recognition to draw market share away from the top firms Bring in more CX thought leaders and talent to act as a catalyst for the 2 previous recommendations

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Product Innovations CEB should introduce new CX resources that have a 70/30 split between Online and Offline tools To be highly scalable, the majority of resources should be online The remaining should be offline (traditional consulting) to offer highly personalized solutions to companies CEB should leverage its global member network to launch a new study on the best CX practices CEB already completes annual research projects; CEB should strive to make a CX research study a priority for 2016 CEB should look to innovate a new CX changing product CEB has recently rolled out a new CX product Analyze incoming data to determine what’s working and what’s not quickly and reform the product as needed CX is a field that’s rapidly changing, calling for a keen eye to successful metrics and multiple product revisions Market leaders assume top positions because of CX innovations; CEB should follow suit

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Product Innovations Product Innovation: Feasibility Analysis

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Brand Improvements CEB already has a global brand name for HR & Sales and should look to add CX to the list CX brand can be improved by Gaining CXPA certifications (the industry standard for CX professionals) Frequently attending CX conferences and setting up CEB booths to educate CX professionals about CEB’s rising CX products Publishing innovative research to reputable journals (HBR, Forbes, etc.) to gain traction similar to “The Challenger Sale” Search Engine Optimization to drive more member to CEB Regardless of product innovations, the CEB CX brand must ramp up its recognition & reach

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Brand Improvements Brand Improvements: Feasibility Analysis

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People Acquisitions CEB already has two CX industry leaders in Matt Dixon and Rick DeLisi CEB should continue building off their rising CX-recognition CEB should continue to attract top CX talent, who should come for the new CX products and CEB’s global brand recognition Actively pursue those who are the top of the CX industry CEB should look into the possibility of acquiring a top competitor to gain a large foothold in the market as well as gain proprietary technology, brand recognition and years of CX experience Recommended acquisition? Satmetrix or Temkin Group “People acquisitions” would be the last area for CEB to grow its budding CX practice

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People Acquisitions People Acquisitions: Feasibility Analysis

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Implementation Timeline Craft Research Study Launch Study Analyze Results; Create Resources Launch Resources Continuous Brand Improvements Continuous People Acquisitions Introduce new CX initiatives Introduce new CX initiatives

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Next Steps

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Begin forming specialized teams throughout CEB to prepare for a full CX transformation Form CX Research team Begin crafting research study Form CX Marketing team Create a extensive marketing plan Form CX HR team Create short list of CX Thought Leaders to pursue To become a market leader as quickly as possible, CX must become a top priority for CEB Should launch this survey from CEB’s Sales & Marketing practice as it will be the most relevant/insightful

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Sibi Murugesan Business Development Intern, CEB 571.303.4448 [email protected]

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Appendix. A.1 – CX Firm Locater Methodology ASSUMPTIONS The General List was compiled through internet searches. Most firms were found on pages 1 – 10 of each search list. This was deemed valid for two reasons: 1) time (there is not enough time to search out for every vendor possible) 2) due to the rise of Search Engine Optimization, the major players within the market were most likely to found in the first 10 pages of each search.   ACTIONS The General List was created through a Google search with the following items: Customer Experience consulting; Customer Experience Consulting Firms; Customer Experience Consulting Service; CX consulting; Net Promoter Score consulting; Net Promoter Service Consulting Firms; Net Promoter Score strategy; NPS consulting; NPS strategy

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Appendix. A.2 – CX Consulting Firms

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Appendix. A.2 – CX Consulting Firms

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Appendix. A.2 – CX Consulting Firms

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Appendix. A.2 – CX Consulting Firms

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Appendix. A.2 – CX Consulting Firms

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Appendix. B - Footnotes CAGR Growth from 2014 – 2019 The CAGR was only given for the 5 year time period. By reversing the CAGR formula, the CAGR for each individual year was determined. 93% of Global CEOs said “Yes, CX is a top priority this year” Almost 24/7 support is crucial to success Firms must have both online & offline capabilities Omni-channel service, focus on mobile NPS metrics Positive experiences for employees and customers Top 25 Influencers in the CX Industry

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Appendix. C – Definitions Customer Experience (CX) : Customer experience is the product of an interaction between an organization and a customer over the duration of their relationship Segments of the CX Value Chain: Net Promoter Score (NPS): Net Promoter Score is a customer loyalty metric where consumers are asked “How likely is it that you would recommend our company/product/service to a friend or colleague?” which is used to measure loyalty between a consumer and provider. NPS Scoring Chart:

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Appendix. C – Qualitative Research

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Appendix. D – Image Citations HR Icon: Research Icon: Marketing Icon: HR Icon 2: Brand Icon: Product Icon: Bain Logo: Satmetrix Logo: Temkin Group Logo: Beyond Philosophy Logo: Strativity Logo: Clock: Computer: People: Magnifying glass: Mobile: