Navigating today’s business environment is challenging. New technologies are reshaping old business models and shortening product lifecycles. Easier access to information is transferring power from business to people, creating more critical and demanding customers. Window companies must respond to changing customer needs and expectations are shrinking. And all of this is happening in the context of a global pandemic, which is giving birth to a new economic reality.
To survive in this new world, companies need to develop organizational skills to consistently deliver what customers really care about … their expertise. Recent research shows that after a bad interaction, more than 75% of customers said they could switch brands, and more than half of customers said they would reduce or stop spending on the organization altogether. Companies that can cultivate and stay in touch with a loyal customer base during the age of transformation will be proven to reliably deliver an exceptional brand experience.
To design and deliver a first-class experience, companies must be able to capture ongoing customer feedback and then turn this feedback into tangible steps to drive positive change for customers. Although this feedback can come from a variety of different sources, from event-triggered surveys to social media posts to product reviews, the type of feedback that generally drives the most strategic customer experience (CX) decisions is feedback from relationship, which tracks customers. ‘general sentiment towards a certain product company.
The most popular relationship metric ever is the Net Promoter Score (NPS), which has become ubiquitous, in part because its simplicity is a simple question that asks customers about their likelihood of recommending a brand to a friend or colleague. . How big is. Other common relationship feedback indicators include satisfaction, repurchase probability, and even comprehensive indicators like the CX Index ™. Used correctly, these metrics will act like a north star, helping the company determine the direction of its CX program and driving cross-functional coordination to execute its vision of the experience.
Unfortunately, most companies do not use them properly.
They did not use these indicators as a tool to promote significant and specific improvement of the experience, but treated the scores as their own purpose. They waste time and resources on debating and comparing numbers instead of implementing changes that can lead to better relationships and better business outcomes, thus focusing CX’s efforts on pursuing the next point.
If brands are to thrive in the new business environment, they need to change their way of thinking. Instead of focusing on measuring relationships, the company insists on scores that are not conducive to action and improvement, the company should turn to the relationship management philosophy, where the company focuses on taking actions that are clearly related to improving key business outcomes, such as retention, loyalty, and lifetime value.
This new management philosophy must be based on a deep understanding of customers as members of individual and corporate customer segments. Companies should not separate the feedback from the person who provided the scores, but should treat these scores as a single input, although important, to get a more complete understanding of each customer. Other inputs that contribute to the 360° customer view may include the customer’s personal, demographic, behavioral, or purchase information, as well as other data about their travel or interaction.
Make this combination of experience data (Xdata), which is data about how customers perceive their experience, including relationship feedback and operational data (Odata), which are data generated from daily business operations, such as preferences, purchases or The use of information is as feasible as possible, and the company should automatically collect, store and maintain the information in dynamic customer files. When all this information is stored in one place, it is easier to analyze the data and discover insights and trends. For example, a company may find that customers who own certain products are more likely to buy again, or that a bad return experience is less likely to cause criticism than a bad store experience.
Armed with this valuable knowledge, the company can determine the type of customer and the number of customers affected by a bad experience. This allows them to prioritize CX plans and calculate the financial benefits of taking specific steps to improve operations in different parts of the business. As the process of continuous listening, action, and improvement is embedded in the organization’s DNA, companies can transform from passive to active and ultimately predictive, quickly adapt their products to meet changing customer needs and personalize experiences based on behavioral trends.
Ultimately, companies that thrive in this new business environment will not only passively measure customer experience, but also actively manage customer relationships. Those not only pursuing higher scores, but also turning those scores into insights, and then into action plans, thereby significantly improving the customer experience. Equip your entire organization (from marketers to frontline employees) with the information and tools needed to provide an experience that will appeal to the hearts of customers. These are the capabilities that companies need to differentiate themselves from their competitors and build long-lasting, mutually beneficial relationships with customers.