Customer Experience and Customer Experience Management (CEM) has been on the corporate agenda for several years now, and interest in the topic seems to be gaining momentum. So, in this way, Strativity Group, and its CEO, Lior Arussy, present a complete guide from Innovation to Execution in the book Customer Experience Strategy.
This focus of this blog isn’t only a book review, but rather a reminder for 2013 that “Customer Experience is not just about passion, it is about profitable results.” How can we innovate this?
First let’s review that Customer Experience is the total value proposition provided to a customer, including the actual product, and all interactions with the customer: pre-sale, at point of sale, and post-sale. This value includes experience attributes such as on-time delivery and the quality of products, as well as the experience attitudes, such as the emotional engagement created during interaction with the customers.
And, Customer Experience Management (CEM) is a business strategy leveraging customer-centric innovation and problem-solving that absolutely provokes smiles, certainly, but the biggest smiles come when companies examine bottom-line profits. Simply stating the goal: Customer Experience is profitable.
Companies are seeking guidance with customer experience motivated by numerous differing issues: market share, wallet share, customer satisfaction, customer attrition, and so on. But the need for customer experience is ultimately driven by one factor: Commoditization. For innovating the Customer Experience it is necessary to build a roadmap to beat commoditization, modernizing the customer relationships and achieving greater profitability.
Organizations cannot accomplish innovation of customer experience without deep employee involvement and without creating experiences for other stakeholders, including employees and B2B suppliers. Customer experience is a business practice definable in financial terms that stakeholders from the CEO, and the CFO on down will understand. Customer Experience is everywhere!
Throughout the following process (taking from the Customer Experience Strategy book) we will examine ways to assure that the customer experience strategy is supported, enabled and executed throughouts the entire organization.
Innovating customer experience involves building a disciplined structure to asses the brand, the customer’s needs and expectations, and the specific execution of experience and delight. To innovate, the firms should design a new customer experience in four key areas: Promise, Delivery, Communication and Growth.
The four stages of experience value evolution are:
1. The Promise of Experience Value: Involve yourself early in establishing the expectations you are delivering against and in establishing the expectations you seek to surpass with delightful experiences. If the promises are beyond the company’s capabilities, you can’t even meet expectations. Under-promising and over-delivering is the more effective method of creating close and committed relationships.
2. The Delivery of Experience Value: This stage concerns every aspect of delivering the promise service, products, information, etc. All the details are involved in delivering experience value, from the operation to the website to delivery of invoices.
3. The Communication of Experience Value: This is a stage that most companies are not aware of, yet they must be. This is the stage where the problems start. Most companies fail to incorporate mechanisms that demonstrate and display the value they provide through products and services. Create a proactive value-visualization model to assure that customer see, understand and appreciate the value that company provide.
4. The Growth of Experience Value: This is a stage of the progression, bringing customer retention, repeat business, and increased profit per transaction. Retaining and growing business from exiting customers is far more cost-effective than acquiring new customers. If companies deliver experience and delight on each of the previous steps, they will see Experience Value growth from highly satisfied customers.
The terms customer loyalty and customer relationship are real life emotional terms, and the great news is that 95% of customer decisions are emotional. The firms are building experiences and relationships every day. The relationships begins with people. Delightful experiences over time, and every interaction, build a relationship, and a strong relationship builds loyalty.
In 2013, start Innovating the Customer Experience! Experiences are not static, they are dynamic.
image credit: ereachconsulting.com
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Geovanny Romero, is certified NPDP Plant Manager at Renovallanta-ContiLifeCycle, and Managing Director at NPD Strategy in Andean Region. A Member of PDMA International, his main interests are focused in Productivity, New Product Development and Lean Innovation Management. You can connect with him on Twitter @geovanny_romero