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: B2B: trouble-free & easy to use are important B2C: both quantitative and subjective

Case Background Touch Points Customer Corridor 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 and 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 decision-making processes Account Reps: Understand and 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