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Customer experience overview

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A brief overview of Customer Experience.

Published in: Marketing
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Customer experience overview

  1. 1. Customer Experience Overview Nancy Yaklich 08.28.2015
  2. 2. The Origin of Customer Experience Pine and Gilmore are credited with describing the experience economy, the next economy following the agrarian economy, the industrial economy, and the most recent service economy. They argued businesses must orchestrate memorable events for their customers, and that memory itself becomes the product — the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers. This is a natural progression in the value added by the business over and above its inputs.
  3. 3. Progression of Value: Coffee Example
  4. 4. The Age of the Customer
  5. 5. Age of the Customer Ushers In a Shift In Power
  6. 6. Customer Experience Definition Forrester and Temkin both define Customer Experience as How Customers Perceive Their Interactions with Your Company.
  7. 7. The Path to Differentiation Success in the age of the customer requires the ability to design, implement and manage customer experience in a disciplined way. Companies can build this capability by following a four- phased path: Repair, Elevate, Optimize and Differentiate. Each phase requires employees to adopt new, increasingly sophisticated customer experience management practices that fix what’s broken and prevent future problems. Repair Getting good at finding and fixing experience issues. Elevate Making delivering good experiences the norm. Optimize Adopting advanced practices that set a company apart in their industry. Differentiate Best-in-class and known for experiences.
  8. 8. Six Disciplines of Customer Experience Consistent, shared understanding of customers, their perception of interactions with the brand – real, actionable insights CUSTOMER UNDERSTANDING A experience strategy that aligns with the business strategy and brand purpose and attributes. Becomes the decision—making guide, “the North Star”, across the organization. STRATEGY A system of shared values and behaviors. Focuses employees on delivering a great experience. Falls into three categories: (1) hiring; (2) socialization; and (3) rewards. CULTURE Manage experience in a proactive and systematic way. Assigns responsibilities for changing business processes. GOVERANCE Envision and implement interactions to meet/exceed needs – includes people, products, interfaces, services and spaces across multiple touchpoints. DESIGN Quantify experience quality consistently across the enterprise, give actionable insights to employees and partners. MEASUREMENT
  9. 9. Defining and Delivering the Right Customer Experience Raising performance requires a disciplined approach. Customer experience performance is defined as how well an organization routinely performs practices across all six disciplines. CUSTOMER UNDERSTANDING CULTURE Consistently Deliver and Improve the Right Customer Experience Define the Right Customer Experience STRATEGY DESIGN MEASUREMENT GOVERNANCE
  10. 10. The Business Case for Customer Experience Forrester found that better customer experience drives millions in revenues benefit across industries
  11. 11. Customer Experience Index Score (Cxi) Impacts Company Stock Performance “A great customer experience can deliver tremendous strategic and economic value to a business, in a way that’s difficult for competitors to replicate.”* Higher revenues – due to better retention, less price sensitivity, greater wallet share and positive word-of-mouth. Lower expenses – due to reduced acquisition costs, fewer complaints, and the less intense service requirements of happy, loyal customers *SOURCE: The 2015 Customer Experience ROI Study, Watermark Consulting. http://www.watermarkconsult.net/docs/Watermark-Customer-Experience-ROI-Study.pdf
  12. 12. Customer Experience Overview Nancy Yaklich 08.28.2015

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