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Customer Guru - 10 for NOW

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10 reasons why customer experience is more important now

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Customer Guru - 10 for NOW

  1. 1. 10 for Now 10 Reasons why customer experience is more important NOW Customer Guru
  2. 2. Age of Manufacturing Age of Distribution Age of Information Age of the Customer We’ve entered the “Age of the Customer” – an era when focusing on customers is more important than any other strategic imperative ü  Ford ü  Boeing ü  P&G ü  Sony ü  Walmart ü  Toyota ü  UPS ü  Amazon.com ü  Google ü  Intuit Contenders: ü  Southwest Airlines ü  Amazon.com SOURCE OF DOMINANCE DOMINANT COMPANIES 1900 - 1960 1960 - 1990 1990 - 2010 2010+ Source: Forrester Perspective: The business impact of customer experience by Kerry Bodine and Moira Dorsey
  3. 3. Customer experience is now a key differentiator. Commoditization because of a plethora of options available to consumers is killing traditional sources of differentiation.
  4. 4. Customers are comparing experiences not products. Traditional industry verticals are borderless now. For example, retailers aren’t just competing with other retailers but also with online private labels.
  5. 5. Voice of customer is greater than ever before. Online reviews, social media, and mobile access have made customers uber informed. Unhappy customers don’t think twice before bashing a brand on Facebook or Twitter
  6. 6. 7-Year Stock Performance of Customer Experience Leaders vs. Laggards vs. S&P 500 (2007-2013) Source: Watermark consulting website; http://www.watermarkconsult.net/why- Watermark.html#Loyalty-Lift Customer experience leaders outperformed the broader stock market by around 25 points. In contrast, the customer experience laggards posted negative returns. Several research firms such as Forrester, Gartner etc. point out that organizations that have better customer experience outperform their competitors in every industry.
  7. 7. Customer experience drives loyalty. Customer experience strongly correlates to customers’ willingness to repurchase, reluctance to switch, and likelihood to recommend the brand.
  8. 8. Customer review is king. More people resort to peer customer review when making a purchasing decision today. Source: Myles Anderson, July 7, 2014. Search Engine Land: http://searchengineland.com/88- consumers-trust-online-reviews-much-personal-recommendations-195803
  9. 9. Advertising is losing its power of persuasion. When making buying decisions, consumers trust recommendations from friends and family more than advertising. Good customer experience is the single most powerful driver for getting more recommendations. Source: Flavio Martins, 28 Dec 2013. Business 2 Community: http://www.business2community.com/ customer-experience/customer-experience-important-advertising-infographic-0726258
  10. 10. By 2020, customer experience will overtake price and product as the key brand differentiator. Most forward thinking companies are already acting now. Source: Walker Customers 2020 Report
  11. 11. Thank you! Get in touch: vivek@customerguru.in kushal@customerguru.in follow us: @custguru Customer Guru

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