Have you seen companies that are doing quite well currently, but who are not focusing very much on customer experiences? How about your company, is it doing ok, but not focusing much on customers? You might even think that customer experiences do not contribute that much in the business results at the end? In this article we will discuss how this kind of thinking may seriously endanger the very existence of the company in the long run.
Every company needs to be financially successful to survive. This includes increasing revenues, making bigger profits and decreasing costs through operational efficiency improvements. Everyone knows the goals, right? But what about achieving them in the most effective way? It is only so far you can optimize processes and change your pricing and it doesn’t take long for competition to catch up with those changes. Where could the “hidden gem” of competitive advantage lie? That is the question that keeps many executives tossing and turning in their beds during the night. “What else can I do?” is the burning question in our minds.
Customer Experience has proven out to be the next step for any mature company with decent processes, IT systems and management practices in place, to win the game. There is a lot of research on Net Promoter Score, which measures recommendability of your business, products or services. It has turned out to be the growth predicting measure of cause and effect where the cause is the customer experience and effects are the tangible business results. Too many companies are still not acknowledging this and for some reason think that the competition is doing better because they have some secrets. And they do! Their secret is to focus on that person who actually brings the money in: The Customer.
Did you know, close to 80% of executives think they are producing great customer experiences, but only 8% of their customers agree? Or did you know that companies who are leaders in customer experience get around 15% higher revenue than the laggards? These and many other researches confirm that customer experiences have significant effect on how companies will perform financially in the future.
Naturally, you can still focus on Business Process Management, IT system optimization and improving your products and services like you have done before. Improving customer experiences does not replace these traditional activities, but complements them in a new and effective way, which will enhance the results you would get from the other activities.
How to apply this article to your business then? Ask yourself whether you have the relevant tools and techniques in place that will ensure your success in Customer Experience Management. Have you for example appointed a Chief Customer Officer? And are the responsibilities and accountability in place for each step of your customer experience? Have you mapped out customer journeys and emotions and made both short- and long-term plans to improve them? Do you actively measure both your own and your competition’s customer experiences so that you can purposefully control your efforts to improve?
If you cannot show clear plans for all the above-described questions, then you probably still have a lot to do to increase the customer experience maturity of your company. And that is great! By focusing your efforts to your customers, you will see dramatic increase in your business performance. And that’s something we all enjoy to see, don’t we?