Using customer journey mapping to support the sales

Using customer journey mapping to support the sales process in complex industrial product service systems Frontiers in Service Conference, Austin TX, USA 6-9 September 2018 Oliver Stoll, Dr Shaun West, Marika Østerlund

Introduction Problem and purpose of this presentation Problem … the sales process in business environments have many actors and is therefore hard to manage

Purpose of this presentation is to: … describe how customer journey mapping can be applied in B2B to support the sales over the operational life of the equipment … show the analysis results of four B2B cases from different segments

Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

This paper describes the process of designing and supporting sales processes in a B2B environment using customer journey mapping to support sales people managing the complexity of the process.

https://uxplanet.org/journey-mapping-is-key-to-gaining-empathy-1da5b54655e1

Introduction Customer journey mapping was developed for a B2C world

What about the B2B environment with complex equipment and processes? Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Introduction B2C sales Stakeholders

Products & services

B2C sales have a small amount of stakeholders, making it easy to manage Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Processes

Introduction B2B sales Stakeholder mapping

Products & services

Processes

B2B sales have many stakeholders with different interests in the Product Service System (PSS) Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Methodology The customer journey mapping used in the B2B/PSS environment

Traditional customer journey mapping

Adjust the mapping for the 3 industrial firms

Collate lessons and create generic model for Product Service System B2B

Develop a generic model for customer journey mapping in B2B/PSS environments

The methodology was designed to provide generic methodology for use in B2B/PSS environments Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Results Four firms that were studied

Airline Considering B2B interactions

OEM for glass manufacturing equipment

OEM for paper manufacturing equipment

OEM for engine manufacturing

Product service systems within an industrial context

All use cases were used to develop a designing process of customer journey mapping for the B2B Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Results and initial analysis Airline

-

Core service considered excellent and awards given Issues with third party services (e.g. taxis and busses at local airport) Mapping supported development of new services pre- and post-flight End-to-end customer journey mapping

basis Integration of new services provided by third party business improved the overall service Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Results and initial analysis – Case 1 OEM for glass manufacturing equipment

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Sales did not understand the buying process of the customer 5+ stakeholder groups with 20+ stakeholders involved in decision making Complex product and service system evaluation with a long product-life New equipment and refurbishment of the equipment

basis Matching the sales process to the buying process makes the difference Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Results and initial analysis – Case 2 OEM for paper manufacturing equipment OTO PROCESS

Request

Time

Plan

1-3 working days

Ref. Number

1

2

4

5

Re-install

Lead Time depending on service (Ranges from 7 to 40 working days) 6

7

8

9

10

11

1 working day 12

13

14

15

Customer Side

Custom er Side

Customer Journey

Request

Send photos

Receive visit

Plan downtime and Negiotiate terms service

· Keep external engineers supervised to protect IP

· Planning downtime · Determining price · Estimation whether & costs service is necessary/ · Estimation of terms needed.

Pains

· Knowing that · Make photos downtime is needed · Take apart equipment

Gains

· Knowing that Voith · Easier than · External engineers works professionally explaining exactly checking at and with high what the problem is equipment quality

Backstage

Receive new inquiry · Check photos · Assess equipment · Decision to visit

Backstage

Voith Actions

Prerequisites for continuation

· Visit customer site · Evaluate situation and refurbishment scope · Recommend wear parts Information sufficient? Yes: Continue No: Revisit site

Employees involved · Sales

· Sales · Application Eng.

· Sales · Application Eng.

· Trust in Voith

Receive & accept final quotation

· Clarification on scope of work and costs

· Make cost estimation and scope of delivery · Check actual delivery time with OH · ME defines feasible delivery time

· Present/clarify cost · Send final estimation, scope quotation and delivery times · Negotiation of terms · Make detailed price calculations · Prepare final

· Application Eng. · Order Handling

· Sales · Application Eng.

· Sales

Sign contract

Make down payment De-install equipment Voith picks up & make ready for equipment shipping · Payment needed · Time and resources · Downtime before action needed for deinstallation

· Voith is reliable and contracts are being respected · Sign contract · Prepare invoice

· Inform AP and OH with corresponding quotation number and specification · Receive down payment · Review and confirm delivery time Accepted & signed? Payment received? Yes: Continue, create Yes: Continue SO No: Stop No: Close process & update CRM system · Sales · Sales · Order handling · Order handling · AP

-

Information

Wait for completion Payment according to contract

· Downtime & waiting

· Convenient · Risk transfer to Voith · Internal kickoff meeting if needed · Arrange shipping to pick up goods upon arrangement

· Sales · Application Eng. · Manufacture Eng. · Order Handling

Internal Informaiton

· Set up stock for spare parts · Pick up equipment · Goods into workshop · Inform workshop · Inspect incoming goods Outsource? Yes: Release PR to procurement & PO to 3rd party No: Continue · Order Handling · Manufacture Eng. · Quality Management · 3rd party (outsourcing)

· Payment can only be executed end of month · Cannot receive equipment if payment has not gone through.

· Define and make · Receive payment refurbishment · Pack and get ready operation process for shipping · Make scheduling & routing · Carry out refurbishment Quality OK? Yes: Continue No: Rework

Payment received? Yes: Continue No: Withhold goods and wait for payment

· Manufacture Eng. · Application Eng. · Purchasing Dept.

· Sales · Order Handling · Shipping

Receive/control refurbished equipment · Control whether service is done correctly

Create CRM opportunity

· Sales create service · AP makes proposal notification via CRM via ERP to SAP · Photos · Customer evaluation

· Checklist · Cost estimation · Photos · Scope of delivery · Documented issues

· Update CRM system

· Gathered customer · Specifications information · Quotation

· Contract

· Create SO in SAP (precondition: signed contract)

· Create PR for spare parts · Create production order · Incoming inspection report · Quality report

· Packing list · Shipping list

Re-install and start operation

Operation & Feedback

· Re-installation takes time and manpower

· Re-start operation · No more downtime · Conditions are good · Deliver goods · Final billing · Issue and send invoice to customer

· Close the order

· Sales ask for feedback

· Order Handling

· Order Handling

· Sales

Identification of customer ‘trigger points’ for purchase Clear identification of roles and responsibilities for each actor Mapping of sales (OTO) and execution processes (OTC) Firms treated as individual actors with individual needs?

Support Processes

Abbreviations

OTC PROCESS

Downtime & Shipping

2-4 working days 3

· Update CRM system · Close order · Lessons learned

· Feedback

AP: Application Engineering OH: Order Handling SO: Sales Order ME: Manufacture Engineering PR: Purchasing Request

basis Matching the sales process to the buying process makes the difference Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

www.pulp-paperworld.com/european-news/item/1885-perlen-papier-counts-on-voith-asits-service-partner

Extensive Customer Journey: Refurbishment of Equipment (EXAMPLE) Process Phase

Results and initial analysis – Case 3 OEM for engine manufacturing

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Mapped the journey for both new equipment and the repair Created personas for all key actors (buyer/user side and supplier side) Created personas for key third-party actors (e.g. freight forwarders) Mapped out the buy/user side processes

basis Mapping the buyers processes helps the supplier to provide more timely interventions Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Results and analysis Lessons learnt from the cases Firm profiles Actor identification

• Profiles from the firms supported better customer understanding • Basic data in one place helps to ensure that everyone has a similar understanding • Some actors were very hard to identify yet their roles became clear during the mapping process

Actor personas

• Personas needed for both internal and external personas (for every transition) • The level of detail in personas was a function of the actors role and their importance

Customer process understanding

• Able to better match supplier interventions with the buying process • Provides insights where new (third-party) services are critical to customer outcomes

Mapping process

• Complex when the whole equipment operational life cycle is considered • The mapping process requires input from many people • Mapping helps to identify critical third-party actors

Changes are needed to improve the usability of customer journey mapping in B2B Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Discussion Actor identification to support customer journey mapping is deeper than stakeholder analysis

There was lack of understanding that the multi-actor or –stakeholder environments Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Discussion Learn to understand firms and the individuals within firms

Business profiles and actor personas

Dominant roles changed during the buying and execution process Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Discussion Understand the overall picture of transactions, processes and relationships

Backstage/hidden actions Visible actions Visible direct interactions Visible actions Backstage/hidden actions Important to understand the buyer’s processes, to do the right things during sales process Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Conclusions B2B is much more complex than typical B2C

Journey map can help identify the relevant actors Creating business profiles and actor personas supports the gaining of customer knowledge Customer journey mapping can help understand customer buying processes in B2B Identification of trigger points along the equipment life cycle (for upgrades and other services)

Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Customer journey mapping provides deep insights into customers and how sales, products, and services are delivered to customers.

Recommendations A generic framework for customer journey mapping in industrial B2B is needed

Integration of both sales and operation to improve UX

Integration with marketing theory to support improved CX

The equipment should be integrated to support trigger points

New tools to help with the capture and the processing of the data

Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

A generic playbook could support the general understanding. However, for each firm it is expected that it must be customised.

Thanks for your time! Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

Who we are… The people behind the work

Marika Østerlund

Dr. Shaun W est

Oliver Stoll

M Sc in Engineering

Lecturer Product-Service

M aster Student at H SLU (CH )

System s at H SLU (CH )

m ro @ a lsie .c o m

sh a u n .w e st@ h slu .c h

For more information please visit slideshare.net/ShaunWest Frontiers In Service Conference, Austin TX 2018 | Stoll, West, Østerlund

o live r.b re n d e l@ stu d .h slu .c h