CDO Chang Legui, Chief Data Officer of Zhuosi: Zhuosi Experience Management | "Starting from the end and enhancing the lifetime value of customers" WISE 2021 Enterprise Service Innovation Summit

On December 13, 2021, 36Kr "WISE2021 King of the New Economy – Enterprise Service Innovation Summit" was successfully held in Shanghai.

This enterprise service summit brings together enterprise service industry experts who have been working hard for many years, as well as well-known investors and industry representatives who pay attention to the enterprise service track, to discuss topics from the rise of the enterprise service industry, transformation analysis to corporate sustainable development strategy, from industry development insight to enterprise management innovation and upgrading, as a hot new track in China's business market, we are helping more enterprises find reliable enterprise service manufacturers, and we are also committed to returning the enterprise service market to a sustainable development route, and also to find the second growth curve, here Together, we witness the innovation and upgrading of the enterprise service market.

At the WISE 2021 Enterprise Service Innovation Summit, CDO Chang Legui, Chief Data Officer of Zhuosi, shared the connotation of customer experience management with the theme of "Zhuosi Experience Management: Starting from the End, Enhancing Customer Lifetime Value". He believes that the transformation of technology has made the customer experience extremely important today, and experience management is not complicated in itself, but it is one of the important capabilities that affect the transformation of enterprises. Under the restrictions of realistic conditions, we can find experience management methods that can slightly exceed customer expectations in order to achieve the dual improvement of customer experience and business value.

CDO Chang Legui, Chief Data Officer of Zhuosi

Chang Legui:

Good afternoon, it is a great honor to participate in this enterprise service innovation summit, and I would like to share with you on our topic today on behalf of Zhuosi.

The topic introduced today is "Zhuosi Experience Management: Starting from the End, Enhancing Customer Lifetime Value". In our opinion, there is now a kind of ability that many companies treat as soft capabilities, but we think it needs a very hard foundation, that is, experience management capabilities.

Experience management is not inherently complex, but it is one of the key capabilities that affect business transformation.

Why? With the introduction of the concept of new retail in 2016, keywords such as user experience and customer experience have soared in major search engines. So we want to ask the question in reverse – doesn't the customer experience matter before 2016? Why does it matter after that? Not because there are many people who say it is important, nor because it is not important because there are fewer people who listen to it, but what determines whether it is important or not? In fact, it's the technological revolution that makes the customer experience incredibly important today.

Today to talk about the metaverse and other various concepts, we want to have a hard currency in the metaverse and the real universe, that is, the so-called experience, whether we are in the real universe or the metaverse, the ultimate purpose of doing various things is to feel "cool", experience is to feel, experience management is how to make customers feel "cool", this is its basic.

Of course, we start to talk about experience management, that is, how to make customers feel "cool" on the basis of, we can maintain the business operation of the enterprise, such as making customers feel "cool" at the same time to help the enterprise make money, which is our theme today.

Founded in 2010, Zhuosi focuses on the direction of customer experience management and is a digital platform company.

We have two platforms at our core, one is the OCEM omni-channel customer voice platform, which monitors and manages the current experience; and the other is the New Inspiring Customer Experience , nice experience intelligent manufacturing platform, for the future experience management and shaping, these two together are TCE full-stack experience intelligent manufacturing platform, through which to do customer experience management. So what is the technical content of customer experience management? It is these three cores, insight into the customer, cognitive experience and innovation management, customer experience management is to string these three core capabilities together.

First, insight into the customer. In the past, more from consulting companies, consumer research, crowd portraits, crowd segmentation, etc., we are more about the customer research methodology and existing data to do the integration, on this basis to further develop and innovate, the consultant's Knowledge into a machine can apply the algorithm.

Second, cognitive experience. The ability to experience is very important, we use a metaphor, what is the experience particularly similar to? The experience is very similar to "ghosts". Why? Experience is everywhere, everyone says they have seen it, but everyone says it differently, illusory and ethereal, and the overall experience is like a "ghost". Because experience is feeling, and feeling is inherently personal, hybrid, and unstructured. Therefore, the ability to experience is the third generation of artificial intelligence - the ability of cognitive intelligence, we must use the opportunity given by cognitive intelligence to develop the gene of experience cognitive intelligence, and then to achieve "Song Dingbo catching ghosts".

Third, innovation management. When doing customer experience management, enterprises often encounter a dilemma, that is, the interests of customers and the interests of enterprises are not on the same level, and we do not need to avoid this problem. Many of our customers are car manufacturers, some customers say that my worst experience is to eat a box lunch in the dealership, the box lunch is not delicious, then to solve this experience problem is very simple, the meal standard can be raised. But the dealer said, who pays for this? I let the customer cool, so who will cover my budget? So management capabilities are actually synergies, that is, how to find experience management methods that can slightly exceed customer expectations under the constraints of real conditions, rather than blindly innovating or creating all the surprise experiences, because in essence, creating experiences is neither something that customers will tell you, nor what customers care about, he is more concerned about how much difference the content he finally enjoys is different from what he expected.

Together, these three competencies are customer experience management.

We have served many brands and businesses in the past, including real estate and automobiles in vertical industries, and the experience in such an industry is very important, the unit price is very high, the transaction cycle is very long, and the customer's feeling is particularly important. In addition, our customers also include e-commerce retail and O2O industry head enterprises, with the rise of the Internet economy, although the e-commerce retail and O2O industry consumers and enterprises interaction frequency is relatively fast, but the customer's evaluation and experience impact is also very large. The third is the financial and hotel tourism industry, which is more concerned about the consumer experience, and all have the head enterprises we cooperate with.

So, today we want to focus on telling you what experience management is and what value it is through pragmatic examples. Today we share an example of the automotive industry.

The automotive business is very important in the Zhuosi business segment, we are the most important supplier of Mercedes-Benz, BMW, Audi and other manufacturers, is one of bmw's 7 customer experience full-stack management suppliers in the world, in 2018, we stood out from more than 3,000 Suppliers of Mercedes-Benz, together with Deloitte and Ogilvy, became mercedes-Benz's best supplier of the year.

Next, we combine a practical case to talk about what the experience management of the car can do.

We are talking about automotive after-sales experience management today, we all know that automotive after-sales is a very large market, but this market is difficult now, why is it difficult?

First, there are now more than 1.5 million registered auto repair companies that can be found, and they are growing at a rate of 200,000 per year. Now China's automotive industry has entered a channel of steady adjustment, new car sales are no longer increasing, but there is a certain decline, but at this time maintenance companies are still entering.

Second, the return rate of 4S stores has dropped to less than 50%, which means that only 42% of the people who are in the store for maintenance this year will come back next year, which is also very scary.

Third, the first insurance is out of the insurance of customers accounted for up to 21%, the so-called first insurance is out of the insurance is to maintain this time, you see me for the first time is also the last time to see me.

Therefore, the challenge for manufacturers and dealers is huge, the ease of customer loss increases, the proportion of loss will increase, and customer loss is equivalent to customer value zero, customer value death, there is almost no possibility of "resurrection", enterprises should focus on thinking and develop management methods to avoid customer loss, rather than creating how to make customers "come back to life".

In reality, the overall transformation speed of auto manufacturers and dealers in the experience management branch is relatively slow, why the automotive after-sales business is so difficult, the core is that it has not yet achieved the transformation from business management to experience management, the core difference between business management and experience management is that you look at the problem from whose perspective.

Let me give you an example, for the dealer's after-sales business, this model is very simple, that is, a simple reservoir with two inlets, the first is the new car I sell every year, and the second is the customer I convert from others every year, just these two increments. Then this reservoir also has a water outlet, which is my lost customer. The daily after-sales business management of manufacturers and dealers is to pay attention to the level of the reservoir, to see how much loyalty and retention this year, in fact, to see the past left behind. For example, last year there were 1,000 people coming, and this year there were 900, so my liquid level is still at 90%. Of course, there is nothing wrong with looking at it this way, but it is biased, because you only see whether it is passable now, but you do not pay attention to the proportion of the inlet and outlet, that is, what is the ratio of inlet and outlet.

We do a simple diagnosis, the height of the vertical shaft discharge liquid level, the proportion of the horizontal axis put in and out of the water outlet, we can see that the vast majority of excellent dealers are in the performance is acceptable, but the new less than the loss of the "external strong middle cadre" middle-aged situation.

The reason is because of the lack of end-game thinking in essence, the lack of ultimate judgment on the customer experience, which leads to two problems: lack of scientific early warning for customer loss; lack of scientific judgment on the value of customers, I don't know who is going to lose, the value is not worth my recovery. We talk about customer experience management, not all customer experience needs to be managed, customer experience management is implemented in the automotive after-sales business, the core is to find out who is about to lose, and whether there is value to recover.

In the past, dealers generally used two methods, the first is called the empirical method, such as my car stipulates that the maintenance is half a year, through the database to see who is fast to half a year, and then contact by phone, that is, I want to let the customer come when to come; the second method is upgraded, called the dynamic method, found that a customer comes every 3 months, may be to do online car running more, 3 months 10,000 kilometers, in order to measure the number of kilometers traveled by customers every day, to the time of the maintenance, invited to the store, these are actually unscientific.

Because the customer back to the factory this matter must return to the customer's point of view, not you to calculate, according to your rules should come, every customer is likely to come every day, we only need to assess this probability, any customer may be lost today, it is also possible to return to the store today, you always have to stand in the overall situation for all customers to evaluate. The after-sales consumption of the car is relatively Buddhist and random, no one said that half a year a maintenance I must go for half a year, half a month in advance, a month after the delay can be, the key is not to ignore the customer's will and ability, any day there will be customers back or lost.

Regarding the judgment of customer value, in the past, the most changeable was RFM, the amount and frequency of customer consumption, etc., but this is not applicable at present. The automotive aftermarket is a planned economy, not a market economy, and the premise of RFM is a market economy. The value of each car has been locked since the day it was sold, and the number of maintenance and repairs done during the life cycle and the number of times to buy insurance are a fixed value.

Therefore, the value management of automotive after-sales in experience management should be switched from the RFM perspective to the PSV (residual available value) perspective. Your actual market is closed, and the more value you've cashed in, the less value remains.

The combination of the two can calculate the basic value of the customer, can also look at the overall value of the customer, and look at the value of the customer from the end point. In this way, we can finally build our own matrix, which forms a judgment according to the risk of customer churn and the level of customer value, and we can give priority to the ultimate experience to diamond customers, give excellent experience to gold customers, and so on, and ultimately improve the double effect of customer experience and business value.

In the past, we have done a lot of experiments with luxury car brands, this is a certain district of data, we have cooperated to convert the perspective of customer value judgment to the remaining available value and then done the test, the accuracy of the invitation has been greatly improved, the number of customers entering the market has increased, and the turnover has also increased. We're seeing a faster increase in turnover because prioritizing management is to customers with higher value.

These are the core themes I'm sharing today. For experience management, the key is to make the "iceberg" complete, what experiences we do will affect customer behavior, what value these behaviors have for the enterprise, and integration is sustainable enterprise customer experience management.