Customer Lifetime Value: An Imperative in the Digital Era

For years, smart businesses have operated under the mantra “the customer is always right.” In an article earlier this year, I wrote about research that showed companies are increasingly taking customer experience management seriously, with many reporting higher profits because of it.

Today, let’s examine the link between customer experience management and financial performance. What tangible factors do companies measure to understand the lifetime value of their customers, and how does focusing strategically on customer lifetime value positively affect the bottom line?

Avaya recently commissioned a research study that found 47 percent of companies say measuring customer lifetime value (CLV) was an essential part of their business strategy. More importantly, those strategic users of CLV significantly outperform non-strategic users. The companies that focus on customer lifetime value significantly outperform those that don’t, in key metrics like customer satisfaction, retention and advocacy.


Measure the impact of customer engagement on your business, with the Customer Lifetime Value Calculator


Consumers have more power today than ever before. They have more channels to choose from at all points along the customer journey. They have their pick of places they can go to for help in making purchasing decisions. They have a louder voice through social media. They make a lot of buying decisions outside of the selling organization’s reach.

With the power to get information at the click of a button, customers are far more demanding of companies. They expect answers, and service, quickly. In many cases, the rate at which consumer expectations are growing is outstripping the service levels companies can deliver with legacy customer service technology.

This is the inflection point where strategic customer lifetime value intersects with the capabilities and importance of contact centers. Companies that focus on strategic lifetime value and use their contact centers as a focal point for customer experience will enjoy a strong competitive advantage over those that don’t.

The equation is simple: If your customer’s experience is good, they’re more satisfied, more likely to become brand advocates and–importantly–more likely to return and spend more money with your company. That requires you to understand who your customers are, what they need, what they already have and what they have looked at in the past week, month, or longer. That information will give you a better chance of tailoring your offer to them, personalized to their specific needs.

By focusing on the elements that make up customer lifetime value, you’ll do a better job of managing revenue, cost and resources–all resulting in higher profitability. Importantly, you’ll retain customers longer–the topic of my next article–and find the value you receive from those customers increases rapidly as you interact with them over time.

Does your company consider customer lifetime value a strategic imperative? Should they? I’d love to hear from you.

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Verbio Brings Voice Biometrics to Avaya Breeze™

If you’ve been following the Avaya Connected Blog in recent weeks, hopefully you’ve read about the changes Avaya expects to see in Customer Engagement as we roll out the Avaya Oceana™ Solution, a contact center suite for the digital age.

And perhaps you’ve read how Avaya Oceana is built upon the flexible platform of Avaya Breeze™, which offers extensibility through a Snap-in architecture, creating new opportunities to extend and customize customer and team engagement interactions further.

I’ve previously highlighted how some of our DevConnect Technology Partners are leveraging the Avaya Breeze Platform to do just that, and I’m happy to add Verbio to the growing list of value-added Snap-in vendors.

I had the opportunity recently to speak with Piergiorgio Vittori, who heads up Americas Sales and Global Partnership opportunities for Verbio, as they recently completed DevConnect Compliance Testing of their Verbio Voice Authentication Snap-in for Avaya Breeze. Piergiorgio indicated that it took “about two months, end to end” to bring this voice biometric solution to market, “including design and requirements, programming, testing, demos, tuning, and documentation.”

I daresay that there aren’t many ways to bring out a flexible, biometric-based capability set in that short of a timeframe, which I offer up as a tremendous proof point for how Avaya Breeze really simplifies key aspects of application and communication services integration.

Verbio’s solution, which couples a Breeze-based Snap-in with their core SaaS-based biometrics capabilities, extends the speech search and ASR/TTS capabilities inherent with Avaya Breeze to a new level of speech capabilities, while maintaining a consistent and familiar type of request and error handling methods to be leveraged by other application developers. The Snap-in itself simplifies many of the tasks associated with passing data to the Verbio engine, acting as a sort of Verbio-proxy for application developers already working in an Avaya Breeze environment.

Voice Biometrics has a number of potential use cases, especially when it comes to automated events and actions. From a security perspective the use of voice biometrics can help ward off social engineering hacks, while its application in contact center domains can increase agent utilization and reduce overall call time by eliminating the need to verify a specific users’ identity through numerous Q&A interactions. In this latter case, a users’ voiceprint can very much act like their conclusive identification.

Enterprises and contact center (or even public safety concerns) can further leverage voice biometric analytical capabilities as an emotion detector to determine whether the validity of the users request is being influenced by stress or emotional status.

All of which makes a great proof point for the power of Avaya Breeze in helping to transform how our customers conduct business in this digital age.

Avaya Oceana: Riding the Next Wave in Customer Experience

Earlier this month, the CFI Group, which issues the annual American Customer Satisfaction Index, issued the Contact Center Satisfaction Index (CCSI). Here are some of the key findings:

  • The index shows a four-point decrease in customer satisfaction from 2015 to 2016, sliding to the lowest score in the nine-year history of the report.
  • Difficulties are driven by the ability (or lack of) to quickly and effectively solve customer issues: Only 52% of contacts were resolved on the first contact and a third could not successfully self-serve through the IVR system.
  • Millennials have higher expectations for service than those 45+ perhaps largely due to their sense of immediacy and highly digital, multi-modal nature.

Bottom line: The CCSI news isn’t good regarding contact centers’ ability to deliver an excellent experience. And that results in reduced revenues for your business as customers go elsewhere to satisfy their needs.

From our point of view … the timing couldn’t be better. Here’s why: Avaya Oceana just went generally available.

As long-time leaders in customer experience technologies, we know there are two critical points of opposition underlying the findings of the recent CCSI report. One is that consumer technologies and customer expectations change at an ever-increasing pace—even more so for millennials—your next generation of disposable income. This change is so rapid that some business technologies can be nearly obsolete before fully implemented. Second, because of this rapid pace of change, enterprises often hesitate to commit to new technologies that may disrupt a precariously-built, but functional operation—many of which resemble a Jenga stack whereby if one piece is touched the whole shebang comes tumbling down.

There’s a third factor that’s worth mentioning: traditional contact center technologies have been rigid, highly complex solutions, making changes to deployed systems difficult at best. Over time, what may be left as a result are ancient artifacts of routing patterns, complex integrations, and more that—at minimum—slow responses to potentially already frustrated customers.

Avaya Oceana to the rescue! Oceana simplifies that with a flexible, software-based solution that can negate those opposing forces. Suddenly, aligning customer needs and business strategies is as easy as drag and drop, so changes can be made without the traditional hold-your-breath-and-see-what-happens approach that causes migraines and drives significant resource requirements. The easy-to-use, self-adjusting system knows how—and in many cases, why—the customer is reaching out, managing proactive, self service and assisted service as a single thread.

Intelligence gleaned via Oceanalytics can be automatically applied and visually reported to those who need to know, who can also make immediate changes in the workflow pattern without esoteric programming requirements.

What’s more? Since Avaya Oceana is built on Avaya Breeze™ Platform, companies have massive flexibility to quickly customize their approach to customer experience—again with simplicity and ease through the development tools or pre-made Snap-ins from the Avaya Snapp Store.

The end game? To deliver the best experience possible every time in the course of a transaction or in the relationship overall.

While much of the magic of Oceana is behind the scenes, essentially, the solution enables companies to fully realize the omnichannel experience that many talk about and few truly deliver.

Experience is everything—Avaya Oceana enables proactive, persistent, contextual highly personalized experiences. The kind of experience even a millennial could love.

Watch the Avaya Oceana video.

Finally… A Contact Center for the Digital Era

Imagine interacting with a company—any company—via your preferred method whenever you want, whether making a phone call, using online chat, sending an SMS, or messaging via Facebook. And, you end up having exactly the experience you were expecting. No not another bad experience. Rather an exceptionally pleasant and good experience, that surprisingly takes less time than you originally anticipated. Sounds too good to be true, doesn’t it?

The reality is that traditional business communications have failed to keep pace with consumer-focused technological devices. As a result, customers’ expectations—while very high—are rarely met when interacting with a business. Customers know what a good technology experience looks like, sounds like. The simplicity, built-in intelligence and sophistication of today’s devices and apps have taught customers that it’s not difficult to have a simple and tailored experience. It’s not difficult to teach a computer to know who you are, what you prefer, what you like to listen to, watch, read, how you like to interact. If it’s not difficult, then why are customer experiences with companies so predictably bad?

It’s time to break the mold. It’s time to start a new customer experience wave that makes customers happy about doing business with a company, excited that a company values their time and loyalty. Let’s give companies the freedom to be innovative, proactive, independent and capable of operating in real time to meet the demands and needs of their customers and agents without fail.

Unlike their traditional predecessors, today’s technological systems and capabilities have finally caught up with digital customer expectations. We have arrived at a point in time where the digital brain of a machine and the reasoning mind of a human are aligned closer than ever. Look at IBM Watson, Amazon Alexa.

Now, all that’s needed is similar thinking and innovation applied to business communications. What’s needed is the re-invention of the contact center for the digital era.

Enter Avaya Oceana™

Oceana is a departure from traditional business communications, just as the smart device was a departure from the basic, voice-only flip phone. This is a contact center for the digital era. Companies today don’t want to risk losing customers as a result of a bad experience. They can’t afford it. Companies want a single solution with best-in-class flexibility that gives them the ability to:

  • Drive adoption of self-service channels by seamlessly linking these into the contact center to deliver an omnichannel multi-touch experience.
  • Make agents more efficient and more effective by enabling them to handle multiple parallel interactions using an integrated multi-media desktop.
  • Reduce call times through utilizing contextual knowledge of prior and in-progress interactions to streamline customer interactions.
  • Drive higher customer satisfaction / NPS by tailoring the engagement experience to address their business’s unique/specific customer needs.
  • Rapidly optimize and continuously improve how they engage with their customers by leveraging their system’s flexibility, openness and integration capabilities.

In turn, customers get the experiences they know modern-day technology is capable of providing. The sophisticated yet simple and intelligent experiences they have grown accustomed to having with their smart devices, tablets, laptops, digital televisions and other smart appliances. This is Oceana.

Avaya Is the Innovative Leader for the Digital Era

When we made the decision and accepted the challenge to lead the industry in re-inventing the contact center, we did not enter into this without careful thought and consideration … of everything. Leaving no stone unturned, we diligently looked at what our customers and our competitors’ customers are working with today. We uncovered more cobbled together, Frankenstein-esque systems than I ever thought existed. The complexity of processes and user experiences that companies unintentionally created by not keeping up with technology upgrades was amazing. Holding on to these older technologies today when all of these digital capabilities are available is similar to keeping a shelf full of CDs for your music. Eventually you realize that making the choice to go digital can transform your world for the better.

What we also learned was that if we were going to re-invent the contact center for the digital era, we had to think differently because digital technology and digital customers require different thinking. We challenged each other daily to think differently. That’s been the biggest challenge all along for companies struggling through digital transformations. But as Avaya learned with our own transformation, once you make the hard decisions, start thinking differently and get to the other side of the transformation, a whole new world of opportunity becomes available to you.

As Oscar Goldman used to say during a time when human-to-machine technology was something only Hollywood could dream up, “Gentlemen, we can rebuild him. We have the technology.” The truth is we finally do have the technology. We can rebuild the contact center. This is no longer a futuristic endeavor, this is now. In fact, let me rephrase that: we have rebuilt the contact center.

This is Oceana. This is the contact center for the digital era. This is the start of something new, the start of something big.