Understanding Customer Understanding Customer ExperienceExperience

Bain & Company SurveyBain & Company Survey Customers of 362 CompaniesCustomers of 362 Companies 8% of Customers Described Experience as “Superior”8% of Customers Described Experience as “Superior” 80% of Companies Believed They Were Providing a 80% of Companies Believed They Were Providing a

Superior ExperienceSuperior Experience

Direct Correlation Between Customer Direct Correlation Between Customer Satisfaction and Customer ExperienceSatisfaction and Customer Experience Satisfaction = Good Experiences – Bad ExperiencesSatisfaction = Good Experiences – Bad Experiences Close the Gap Between Expectation and ExperienceClose the Gap Between Expectation and Experience

Case BackgroundCase Background

Two types of contactsTwo types of contacts Direct : occurs during purchase, use, and Direct : occurs during purchase, use, and

service and usually initiated by customerservice and usually initiated by customer Indirect: involves unplanned encounters with Indirect: involves unplanned encounters with

representations of co.’s products, services, or representations of co.’s products, services, or brands, & takes the form of word-of-mouth brands, & takes the form of word-of-mouth info., advertising, news reports, reviews, etc.info., advertising, news reports, reviews, etc.

Differences of experiences between:Differences of experiences between: B2B: trouble-free & easy to use are importantB2B: trouble-free & easy to use are important B2C: both quantitative and subjectiveB2C: both quantitative and subjective

Case BackgroundCase Background

Touch PointsTouch Points Instances of direct contact between the customer and Instances of direct contact between the customer and

the product or servicethe product or service Change over timeChange over time Not all touch points are equalNot all touch points are equal

Product or ServiceProduct or Service Expectations vs. Experience Expectations vs. Experience

Previous experiences as reference pointsPrevious experiences as reference points Market ConditionsMarket Conditions CompetitionCompetition

Customer CorridorCustomer Corridor The series of touch points that a customer experiencesThe series of touch points that a customer experiences

Customer Experience Mgmt vs. Customer Relationship Mgmt

CEM and the Service Package/VisionCEM and the Service Package/Vision

CEM can help identify the weak areas of a CEM can help identify the weak areas of a company’s service package and enhance the company’s service package and enhance the Strategic Service Vision.Strategic Service Vision.– CEM can measure all aspects of the service package CEM can measure all aspects of the service package

and strategic service visionand strategic service vision– CEM tracks past, present, and potential customer CEM tracks past, present, and potential customer

patterns to obtain accurate informationpatterns to obtain accurate information– Buyer frequencies determine level of data collectionBuyer frequencies determine level of data collection

PersistentPersistent

PeriodicPeriodic

PulsedPulsed

Business AlignmentBusiness Alignment

To be a service winner CEM must be a top To be a service winner CEM must be a top company priority and aligned throughout company priority and aligned throughout all business units to have an affectall business units to have an affect

Marketing: Understand and communicate Marketing: Understand and communicate customer demandscustomer demands

Service: Ensure processes, skills and Service: Ensure processes, skills and practices are attuned at every touch pointpractices are attuned at every touch point

Product Development: Incorporate Product Development: Incorporate customer feedback into design processcustomer feedback into design process

Business Alignment Business Alignment (Cont.)(Cont.)

IT: Collect and analyze CEM data, integrate it IT: Collect and analyze CEM data, integrate it with CRM data, and communicate findings to with CRM data, and communicate findings to internal usersinternal users

Human Resources: Communicate strategy and Human Resources: Communicate strategy and describe how CEM will alter work and decision-describe how CEM will alter work and decision-making processesmaking processes

Account Reps: Understand and utilize detailed Account Reps: Understand and utilize detailed touch point analysis, communicate findings touch point analysis, communicate findings internally and to customersinternally and to customers

Customer Experience Management (CEM)

When Does the CEM Approach Work? Should work in every possible scenario

Can company afford investment in a “closed-loop” process?

Every business function involved in delivering a good experience

Treo

Senior management provides support and direction

Requires time and money to implement Surveys

Pattern data collection and analysis

Changing work processes, systems and structure to reflect a focus on customer experience

Customer Experience Management (CEM)

When to Invest in CEM? Should be implemented in every company

Service

Production

Highly competitive industries Reputation for good customer experience can help distinguish

companies

Ease of working with company is likely to increase customer retention

When other competitors focus on CEM

When other competitors lack CEM focus

Customer Experience Management (CEM)

When Not to Invest in CEM

Switching costs are high

Company provides a unique service where very few alternatives exist

Keep the customer in mind, but do not place such an emphasis on Customer Experience Management

Focus more on Customer Relationship Management (CRM)

When competition for customers increases and/or more alternatives to service are developed shift focus to CEM