Understand how your applications’                         performance impacts your business.

    Dynatrace provides unmatched insight into digital experience by correlating user                                                       behavior and service performance.

  • See where performance matters most in each customer’s digital journey and interactions with your application.
  • Prioritize performance optimization based on real digital-business outcomes.
  • Collaborate better with IT around a common language based on digital experience.
Dynatrace
Dynatrace

Digital Experience and Application Performance

Marc Olesen, General Manager, Digital Experience, Dynatrace
Marc Olesen
SVP & General Manager, Digital Experience
Dynatrace
Michael Krigsman, Founder, CXOTalk
Michael Krigsman
Industry Analyst
CXOTALK
 

The growing importance of digital transformation means that digital channels have become critical mechanisms for many companies to interact with their customers.

The mission-critical aspect of engagement requires organizations in every industry to consider how digital performance can affect customer behavior. Confusing website navigation, long click paths, and slow or incomplete transactions can quickly drive customers to competitors. A single delay opens the door to customers abandoning a shopping cart to search for a competitor.

In this video, Dynatrace Senior Vice President & General Manager of Digital Experience, Marc Olesen, explains digital performance and the impact on customer experience.

Transcript

Michael Krigsman: I’m Michael Krigsman, and we’re talking with Marc Oleson, who is the General Manager for Digital Experience at Dynatrace. And we’re going to talk about performance, and customer experience, and digital experience. Marc Olesen, how are you, and thanks for taking a few minutes to speak with us today.

Marc Olesen: Good! Thanks, Michael. Thanks for having me.

Michael Krigsman: So Marc, when we talk about digital performance, what is it, and why is it important? Why should we care?

Marc Olesen: You know, the digital channel for organizations really used to be about accessing information. Performance was relevant, but not critical. Today, when you think that the digital channel is the business model for many organizations; it’s the only channel to revenue, to growth, to customer retention. Performance is absolutely critical to those underpinnings, and it’s driving a lot of competitive differentiation as well today. For instance, Comcast is integrating voice into their experience for customers and users. They’re also integrating multiple components: for instance, they’ve incorporated Rotten Tomatoes, which does movie reviews, into their movie guide, again driving better differentiation for them. But when you start to have more dependencies across these third parties, performance again becomes critical to ensuring a seamless user experience.

Michael Krigsman: Marc, when you talk about dependencies, can you be more specific? What are you referring to?

Marc Olesen: Yeah, well there’s a few, right? So one set of dependencies is the one I was just talking about, where there’s third parties...in fact on average, for Dynatrace customers, they have 27 third-party integrations in their websites or mobile apps. Those 27 components, they don’t have direct control over, so there’s complexity there in managing and monitoring that performance. The other complexity is just the architectural stack itself. We can have one customer that has 820 billion dependencies, different dependencies, in their architectural stack.

Michael Krigsman: So these dependencies aggregate together to create a series of, could we say, additive performance issues. Would that be correct?

Marc Olesen: They could represent performance challenges, absolutely.

Michael Krigsman: Now, what does this have to do with customer experience? So what’s the linkage there?

Marc Olesen: Yeah, so the link is, on the customer experience front, it’s all about optimizing that experience for the user in terms of the steps or click paths that they may be on in a website, in terms of the information that an organization wants a user to have access to and to be able to digest, right? That’s driving an intimate relationship with the user. However, again, performance and digital experience is the foundation of that. You can’t deliver a flawless customer experience without a flawless digital experience, and a flawless performance foundation.

Michael Krigsman: And you mentioned earlier that many organizations now have a business model that incorporates online channels, and so therefore, serving up the right customer experience becomes crucial to meeting their core business objectives.

Marc Olesen: Absolutely crucial, in fact a recent study I was just exposed to: over half of the users who had a poor experience did not go back and purchase from that particular vendor. Over half of the users! There’s a high degree of expectation around the performance of the user experience.

Michael Krigsman: So what happened? Did the site just slow and the users just jump to somewhere else? What’s the mechanism that causes that interruption of a possible revenue stream?

Marc Olesen: Yeah, well you know, the mechanism is performance, so it could be a breakdown in any of the dependencies or areas of the infrastructure that we talked about; but, what’s happening is, they can jump, because really there’s this level playing field now.

Michael Krigsman: I’m Michael Krigsman, and we’re talking with Marc Oleson, who is the General Manager for Digital Experience at Dynatrace. And we’re going to talk about performance, and customer experience, and digital experience. Marc Olesen, how are you, and thanks for taking a few minutes to speak with us today.

Marc Olesen: Good! Thanks, Michael. Thanks for having me.

Michael Krigsman: So Marc, when we talk about digital performance, what is it, and why is it important? Why should we care?

Marc Olesen: You know, the digital channel for organizations really used to be about accessing information. Performance was relevant, but not critical. Today, when you think that the digital channel is the business model for many organizations; it’s the only channel to revenue, to growth, to customer retention. Performance is absolutely critical to those underpinnings, and it’s driving a lot of competitive differentiation as well today. For instance, Comcast is integrating voice into their experience for customers and users. They’re also integrating multiple components: for instance, they’ve incorporated Rotten Tomatoes, which does movie reviews, into their movie guide, again driving better differentiation for them. But when you start to have more dependencies across these third parties, performance again becomes critical to ensuring a seamless user experience.

Michael Krigsman: Marc, when you talk about dependencies, can you be more specific? What are you referring to?

Marc Olesen: Yeah, well there’s a few, right? So one set of dependencies is the one I was just talking about, where there’s third parties...in fact on average, for Dynatrace customers, they have 27 third-party integrations in their websites or mobile apps. Those 27 components, they don’t have direct control over, so there’s complexity there in managing and monitoring that performance. The other complexity is just the architectural stack itself. We can have one customer that has 820 billion dependencies, different dependencies, in their architectural stack.

Michael Krigsman: So these dependencies aggregate together to create a series of, could we say, additive performance issues. Would that be correct?

Marc Olesen: They could represent performance challenges, absolutely.

Michael Krigsman: Now, what does this have to do with customer experience? So what’s the linkage there?

Marc Olesen: Yeah, so the link is, on the customer experience front, it’s all about optimizing that experience for the user in terms of the steps or click paths that they may be on in a website, in terms of the information that an organization wants a user to have access to and to be able to digest, right? That’s driving an intimate relationship with the user. However, again, performance and digital experience is the foundation of that. You can’t deliver a flawless customer experience without a flawless digital experience, and a flawless performance foundation.

Michael Krigsman: And you mentioned earlier that many organizations now have a business model that incorporates online channels, and so therefore, serving up the right customer experience becomes crucial to meeting their core business objectives.

Marc Olesen: Absolutely crucial, in fact a recent study I was just exposed to: over half of the users who had a poor experience did not go back and purchase from that particular vendor. Over half of the users! There’s a high degree of expectation around the performance of the user experience.

Michael Krigsman: So what happened? Did the site just slow and the users just jump to somewhere else? What’s the mechanism that causes that interruption of a possible revenue stream?

Marc Olesen: Yeah, well you know, the mechanism is performance, so it could be a breakdown in any of the dependencies or areas of the infrastructure that we talked about; but, what’s happening is, they can jump, because really there’s this level playing field now. Brands and options have been democratized, so it’s very easy for you to jump to almost an equally attractive solution or product.

Michael Krigsman: So it’s very easy to just go from your site, which is slow, to your competitor’s site, which is there.

Marc Olesen: Yeah, and again, it underscores and reinforces just what you’re saying, Michael, which is how critical and important the user experience. There’s a co-dependency there, they go hand-in-hand.

Michael Krigsman: So, you’ve explained, Marc, the complexity of sites with third-party integrations and all of these various dependencies. So given this environment, what recommendations do you have, or advice, for addressing this performance problem, and therefore, helping ensure a better user experience for the people that are your potential buyers?

Marc Olesen: Yeah. And you know, so ultimately, I would always start with what are the business objectives, what’s the business outcome, what’s the supporting user experience; again, the click paths or the information or content they want in the hands of the user. And then, the foundational performance needs to be, you know, assessed in different ways. And, what I would say is, specifically, [there are] three ways to triangulate around performance. So, the first is active monitoring, you want to be simulating what your users are going to be doing, helping you identify the problems before a user actually experiences it. You want to be, of course, looking at what your users are going to be doing when they’re going in the website; what issues they may be facing. You want to solicit feedback from them, qualitative feedback, on their performance or experience.

Also in pulling it all together: it’s the analytics of pulling all of it together; being able to correlate the active monitoring, the passive monitoring, the qualitative experience to ultimately drive your investment decisions around performance.

Michael Krigsman: So, [it’s] essentially being able to diagnose the underlying components of the site, and correlate that to where performance bottlenecks or issues may be happening.

Marc Olesen: Yes. With the actual users.

Michael Krigsman: Fantastic! Marc Olesen, General Manager of Digital Experience for Dynatrace, thanks alot. It was nice talking to you.

Marc Olesen: Thanks a lot, Michael. 

Customer Experience and Digital Performance Management

Natalie Petouhoff, Vice President and Principal Analyst, Constellation Research, Inc.
Natalie Petouhoff
Vice President and Principal Analyst
Constellation Research, Inc.
Michael Krigsman, Founder, CXOTalk
Michael Krigsman
Industry Analyst
CXOTALK
 

In an online and digital world, your company may lose customers because of web performance issues, poor response time, and slow speed. Dr. Natalie Petouhoff explains the importance of "flow" in the digital customer’s journey, and offers advice on addressing digital performance issues. In this video, learn how to merge digital experience (DX) and customer experience (CX) in a seamless flow.

Transcript

Michael Krigsman: I’m Michael Krigsman, and I’m speaking with Natalie Petouhoff, who is Vice President and Principal Analyst at Constellation Research. And Natalie, welcome! We’re talking about digital performance management today, and customer experience.

Natalie Petouhoff: Thank you, Michael. It’s great to be here.

Michael Krigsman: So Natalie, you just did research that looked at customer experience and digital performance management. Give us a high-level summary of what your research uncovered.

Natalie Petouhoff: So, what we found was that CX people don’t know that the new CX is DX, that it’s all about the flow, and oftentimes the flow is slow! That’s what makes customers leave.

Michael Krigsman: What do you mean by customer experience?

Natalie Petouhoff: So, customer experience is what the end user, the customer, sees. When they go on a website to look for information, or to buy something, they look on their mobile app. What experience do they have? Is it a good experience? Do the pages load, or is it really slow? When you press the “buy” button, does it get hung up? Do you just close out that browser and move on? It’s really that experience which is going to really keep your customers loyal, or they’re going to head over to your competitors.

Michael Krigsman: Now, returning to the concept of digital performance management: You said DX earlier, or digital experience. What do we mean by that?

Natalie Petouhoff: DX, or digital performance management, is the new CX, and that’s really what I’m here to establish. If you’re in charge of your Digital Chief Officer, Digital Customer Officer, Chief Experience Officer, what you really need to understand is you have probably done an amazing job of mapping out customer journeys and picking the right omni-channel customer experience software so you can work on many different devices and many different channels. But what you might not know, and what we found most CX people don’t know that they don’t know, is that there’s a whole technology infrastructure underneath that CX technology; and it needs to be tested, it needs to be optimized, real time, at scale, all the time.

Michael Krigsman: So, it’s not enough to simply present good content to the user, and everybody’s focused on the content. But, regarding the package, or the context of that content: How fast is it? How responsive? All of that is equally important.

Natalie Petouhoff: Well, if content is the king, then DPM is the ace.

Michael Krigsman: And, what are the challenges associated with delivering the right type of digital performance experience?

Natalie Petouhoff: Well, let’s put your consumer head on for a second: You go to a website, it doesn’t load, you’re thinking, “Hmm, I don’t know what’s wrong with this. They’re asking me to register, they’re asking me to download or purchase something, they’re asking for information, and this website’s just not working.” It’s really about what the end-user experience is like. However, it’s the digital performance management software that’s going to optimize that experience to make sure that those pages aren’t slow, that they do flow, and that the customer is happy and more likely to stay with you.

Michael Krigsman: So if customer experience is the flow from a content perspective, does the flow through the site make sense in terms of an offer, or whatever it is that’s being presented? It’s the digital performance management that underlies it, which ensures the user is experiencing a snappy, fast performance.

Natalie Petouhoff: Yes. That’s exactly right.

Michael Krigsman: Now, what are some of the key lessons that your research uncovered? And what advice do you have for site developers, content owners, or marketers who want to ensure that their site has the right level of performance, and that therefore, their digital performance management situation is fully in order and handled?

Natalie

Michael Krigsman: I’m Michael Krigsman, and I’m speaking with Natalie Petouhoff, who is Vice President and Principal Analyst at Constellation Research. And Natalie, welcome! We’re talking about digital performance management today, and customer experience.

Natalie Petouhoff: Thank you, Michael. It’s great to be here.

Michael Krigsman: So Natalie, you just did research that looked at customer experience and digital performance management. Give us a high-level summary of what your research uncovered.

Natalie Petouhoff: So, what we found was that CX people don’t know that the new CX is DX, that it’s all about the flow, and oftentimes the flow is slow! That’s what makes customers leave.

Michael Krigsman: What do you mean by customer experience?

Natalie Petouhoff: So, customer experience is what the end user, the customer, sees. When they go on a website to look for information, or to buy something, they look on their mobile app. What experience do they have? Is it a good experience? Do the pages load, or is it really slow? When you press the “buy” button, does it get hung up? Do you just close out that browser and move on? It’s really that experience which is going to really keep your customers loyal, or they’re going to head over to your competitors.

Michael Krigsman: Now, returning to the concept of digital performance management: You said DX earlier, or digital experience. What do we mean by that?

Natalie Petouhoff: DX, or digital performance management, is the new CX, and that’s really what I’m here to establish. If you’re in charge of your Digital Chief Officer, Digital Customer Officer, Chief Experience Officer, what you really need to understand is you have probably done an amazing job of mapping out customer journeys and picking the right omni-channel customer experience software so you can work on many different devices and many different channels. But what you might not know, and what we found most CX people don’t know that they don’t know, is that there’s a whole technology infrastructure underneath that CX technology; and it needs to be tested, it needs to be optimized, real time, at scale, all the time.

Michael Krigsman: So, it’s not enough to simply present good content to the user, and everybody’s focused on the content. But, regarding the package, or the context of that content: How fast is it? How responsive? All of that is equally important.

Natalie Petouhoff: Well, if content is the king, then DPM is the ace.

Michael Krigsman: And, what are the challenges associated with delivering the right type of digital performance experience?

Natalie Petouhoff: Well, let’s put your consumer head on for a second: You go to a website, it doesn’t load, you’re thinking, “Hmm, I don’t know what’s wrong with this. They’re asking me to register, they’re asking me to download or purchase something, they’re asking for information, and this website’s just not working.” It’s really about what the end-user experience is like. However, it’s the digital performance management software that’s going to optimize that experience to make sure that those pages aren’t slow, that they do flow, and that the customer is happy and more likely to stay with you.

Michael Krigsman: So if customer experience is the flow from a content perspective, does the flow through the site make sense in terms of an offer, or whatever it is that’s being presented? It’s the digital performance management that underlies it, which ensures the user is experiencing a snappy, fast performance.

Natalie Petouhoff: Yes. That’s exactly right.

Michael Krigsman: Now, what are some of the key lessons that your research uncovered? And what advice do you have for site developers, content owners, or marketers who want to ensure that their site has the right level of performance, and that therefore, their digital performance management situation is fully in order and handled?

Natalie Petouhoff: Well Mike, this is one of those things that falls in the wheelhouse of organizational change, and so it’s really not about the CX people or the IT people, it’s really about businesspeople and IT coming together to be able to optimize the experience; and it really takes both teams doing what they do best to be able to do that.

The first thing I would ask is, “Do you know about DPM?” And if you don’t know about DPM, it’s time to go make some friends with IT. And, if you do have DPM in your organization, are you actually looking at every single web page, and looking to see how well it’s being tested? You can do benchmarks; there are plenty of sites where you can see where your performance is.

And then, if you can’t optimize every single page, which most customers can’t, then you want to figure out what pages do you want to optimize? Is it the purchase page where that button is, where people are purchasing? Is it getting hung up? You know, is it making people feel that purchase didn’t go through? You also want to look at pages that are early in the funnel, because that’s really where you’re going to gain the trust of the customer.

Michael Krigsman: So, it’s the coming together of the user perspective with the technical perspective, and that means business working together with IT to present a unified front and smooth flow across all these dimensions to the user.

Natalie Petouhoff: Exactly right. If you’re in an agency and you’ve created beautiful content, that’s really great but you want to make sure that content doesn’t take too long to load. Slow is not good. Flow is great. So, it’s really about making the connection between what the user is experiencing, the customer journey that you’ve created, and then testing and optimizing the technology that supports all of it.

Michael Krigsman: I love that. Slow is not good, flow is great. We’ve been talking with Natalie Petouhoff, who is Vice President and Principal Analyst at Constellation Research.

Digital Experience: Stages of Excellence

Howard Wilson, General Manager - Digital Experience, Dynatrace
Howard Wilson
General Manager - Digital Experience
Dynatrace
 

Digital experience should lead to higher satisfaction and engagement among customers. However, getting there requires a process, going through certain stages of maturity as a digital business. Our goal should be to move from a position of reacting to customer events to being proactive and ensuring positive customer experiences in the first place.

Transcript

As someone who’s dealing with digital disruption, you no doubt know that there are many challenges. Challenges to managing the digital experience, changing the way in which your customers interact with you.

When we look at this, we often think about it in terms of what does digital experience mean. And to me, digital experience is really about bringing customer experience to life. And what does that mean? Well, customer experience together with your brand, together with the way that you do business, all of those in a digital or online world constitute digital experience.

Many organizations that I speak to have had the same experience find that there’s an evolution that you follow. That evolution means that you could be going through different stages of maturity regarding how you engage within this environment with constant digital disruption.

From my experience with our customers, there’s a progression that goes from being fairly tactical having a more integrated approach to digital assets, and then being proactive to optimize the digital environment and thus to deliver a far better digital experience. And ultimately the end goal is to drive engagement to the customer base.

Many organizations when they look at digital experience get very caught up on the technical components of responding when customers have a problem. And that dimension, that reactive dimension, is certainly important, because we all want to be able to respond quickly when a customer does have an issue. And sometimes you’ll hear people talk about mean-time-to-repair or any number of things along those lines which sound very technical.

But we also want to make sure to be proactive. Wouldn’t you rather want to be able to identify a problem before a customer experiences that problem? Wouldn’t you want to be able to improve the customer experience proactively so that they have a better experience the next time they use your digital property? Wouldn’t you want to be able to make better decisions in terms of being able to invest your performance galas for example in optimizing the right part of a customer journey or a customer experience.

All of these are important considerations as you move along that continuum of digital experience maturity, being able to deliver a high level of engagement to your customer base. Of course, the outcomes become evident in business results. That better engagement leads to better conversions. It means an increase in subscribers and leads to overall improved customer satisfaction.

As someone who’s dealing with digital disruption, you no doubt know that there are many challenges. Challenges to managing the digital experience, changing the way in which your customers interact with you.

When we look at this, we often think about it in terms of what does digital experience mean. And to me, digital experience is really about bringing customer experience to life. And what does that mean? Well, customer experience together with your brand, together with the way that you do business, all of those in a digital or online world constitute digital experience.

Many organizations that I speak to have had the same experience find that there’s an evolution that you follow. That evolution means that you could be going through different stages of maturity regarding how you engage within this environment with constant digital disruption.

From my experience with our customers, there’s a progression that goes from being fairly tactical having a more integrated approach to digital assets, and then being proactive to optimize the digital environment and thus to deliver a far better digital experience. And ultimately the end goal is to drive engagement to the customer base.

Many organizations when they look at digital experience get very caught up on the technical components of responding when customers have a problem. And that dimension, that reactive dimension, is certainly important, because we all want to be able to respond quickly when a customer does have an issue. And sometimes you’ll hear people talk about mean-time-to-repair or any number of things along those lines which sound very technical.

But we also want to make sure to be proactive. Wouldn’t you rather want to be able to identify a problem before a customer experiences that problem? Wouldn’t you want to be able to improve the customer experience proactively so that they have a better experience the next time they use your digital property? Wouldn’t you want to be able to make better decisions in terms of being able to invest your performance galas for example in optimizing the right part of a customer journey or a customer experience.

All of these are important considerations as you move along that continuum of digital experience maturity, being able to deliver a high level of engagement to your customer base. Of course, the outcomes become evident in business results. That better engagement leads to better conversions. It means an increase in subscribers and leads to overall improved customer satisfaction.

How to Create a Culture of Digital Experience

Howard Wilson, General Manager - Digital Experience, Dynatrace
Howard Wilson
General Manager - Digital Experience
Dynatrace
 

Culture change among the most important aspect of digital transformation. When it comes to digital experience, helping the organization adapt to new ways of interacting with customers is a crucial activity. We can hardly overstate the importance of digital experience in creating customer relationships and brand loyalty, so creating a customer-centric culture is essential.

Transcript

Organizations today must think differently about how they deal with the digital experience world. And that means, as a result of digital disruption organizations are having to create a very different culture.

This is being driven by the fact that there are various stakeholders in the domain of delivering applications that’s called the digital experience. This means that you have line of business owners who have an interest. It means that you have IT operations people, network operations people. All these are part of this ongoing community, or growing community, of people who are interested in digital experience.

As a result of this collaboration, it means organizations need to operate differently. It means that they need to have a culture, they need to have processes; they need to have an organization structure that supports that kind of collaboration.

The types of things that we’re seeing when it comes to developing or defining this culture begins with the philosophy; digital experience begins with the customer. Digital experience is about ensuring that you can deliver a good customer experience. That needs to become pervasive in an organization.

So one of the things that’s important regarding building this culture is developing a philosophy that starts from the outside in, that helps organizations to think about the kind of culture that they want that is customer centric within the digital framework and digital world.

It also means that you must have a high degree of action orientation because there is a need to be able to move fast. There’s agile development about quickly getting what you need out into the marketplace.

So how do organizations go about doing this? I’ve seen our customers primarily approach this from two directions. One is organizational change. Sometimes they create dedicated teams. Teams that are focused purely on these digital projects which drive the expansion of the systems of engagement, or they create groups that sit between the line of business and between the operations areas that are focused on that same mandate but now focus firmly on driving that collaboration element.

The second way that organizations approach this is through improving processes for collaboration making sure that these are lightweight and make it easy for these teams to work cross-functionally.

The result, of course, is the ability to meet the customer requirement, to deliver systems that are more important, more representative of what customers need, and overall drive a better digital experience. And the way in which this manifests is increased engagement with the customer base, it’s customers using those digital assets more aggressively, and driving a continuous culture of change within an enterprise.

Organizations today must think differently about how they deal with the digital experience world. And that means, as a result of digital disruption organizations are having to create a very different culture.

This is being driven by the fact that there are various stakeholders in the domain of delivering applications that’s called the digital experience. This means that you have line of business owners who have an interest. It means that you have IT operations people, network operations people. All these are part of this ongoing community, or growing community, of people who are interested in digital experience.

As a result of this collaboration, it means organizations need to operate differently. It means that they need to have a culture, they need to have processes; they need to have an organization structure that supports that kind of collaboration.

The types of things that we’re seeing when it comes to developing or defining this culture begins with the philosophy; digital experience begins with the customer. Digital experience is about ensuring that you can deliver a good customer experience. That needs to become pervasive in an organization.

So one of the things that’s important regarding building this culture is developing a philosophy that starts from the outside in, that helps organizations to think about the kind of culture that they want that is customer centric within the digital framework and digital world.

It also means that you must have a high degree of action orientation because there is a need to be able to move fast. There’s agile development about quickly getting what you need out into the marketplace.

So how do organizations go about doing this? I’ve seen our customers primarily approach this from two directions. One is organizational change. Sometimes they create dedicated teams. Teams that are focused purely on these digital projects which drive the expansion of the systems of engagement, or they create groups that sit between the line of business and between the operations areas that are focused on that same mandate but now focus firmly on driving that collaboration element.

The second way that organizations approach this is through improving processes for collaboration making sure that these are lightweight and make it easy for these teams to work cross-functionally.

The result, of course, is the ability to meet the customer requirement, to deliver systems that are more important, more representative of what customers need, and overall drive a better digital experience. And the way in which this manifests is increased engagement with the customer base, it’s customers using those digital assets more aggressively, and driving a continuous culture of change within an enterprise.