Understanding Customer Experience Bain Company Survey Customers of

Understanding Customer Experience § Bain & Company Survey § Customers of 362 Companies § 8% of Customers Described Experience as “Superior” § 80% of Companies Believed They Were Providing a Superior Experience § Direct Correlation Between Customer Satisfaction and Customer Experience § Satisfaction = Good Experiences – Bad Experiences § Close the Gap Between Expectation and Experience

Case Background § Two types of contacts § Direct : occurs during purchase, use, and service and usually initiated by customer § Indirect: involves unplanned encounters with representations of co. ’s products, services, or brands, & takes the form of word-of-mouth info. , advertising, news reports, reviews, etc. § Differences of experiences between: § B 2 B: trouble-free & easy to use are important § B 2 C: both quantitative and subjective

Case Background § Touch Points § Instances of direct contact between the customer and the product or service § Change over time § Not all touch points are equal § Product or Service § Expectations vs. Experience § § § Previous experiences as reference points Market Conditions Competition § Customer Corridor § The series of touch points that a customer experiences

Customer Experience Mgmt vs. Customer Relationship Mgmt

CEM and the Service Package/Vision CEM can help identify the weak areas of a company’s service package and enhance the Strategic Service Vision. – CEM can measure all aspects of the service package and strategic service vision – CEM tracks past, present, and potential customer patterns to obtain accurate information – Buyer frequencies determine level of data collection Persistent Periodic Pulsed

Business Alignment To be a service winner CEM must be a top company priority and aligned throughout all business units to have an affect § Marketing: Understand communicate customer demands § Service: Ensure processes, skills and practices are attuned at every touch point § Product Development: Incorporate customer feedback into design process

Business Alignment (Cont. ) § IT: Collect and analyze CEM data, integrate it with CRM data, and communicate findings to internal users § Human Resources: Communicate strategy and describe how CEM will alter work and decisionmaking processes § Account Reps: Understand utilize detailed touch point analysis, communicate findings internally 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