The document discusses the importance of customer experience management (CEM) and how utilizing customer feedback can lead to significant revenue growth and improved customer relationships. It emphasizes planning the complete use of customer insights, listening effectively to the right customers, and integrating various intelligence sources to create a customer-centric value chain. The text also compares traditional approaches to newer, more holistic methods of engaging with customers to enhance advocacy and loyalty.

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Customer Experience Strategy
Bad News is Good News
Do the Whole Job

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Good news is no news
No news is bad news
Bad news is good news!
-Jim Morgan, Chairman, Applied Materials

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1%
Reduction
of Negative
Word-of-Mouth
1%
Increase
of Positive
Word-of-Mouth
0.41% Revenue Growth 0.14% Revenue Growth
Higher ROI by Acting on Constructive Feedback
300% ROI on reducing negative buzz
compared to increasing positive buzz
-London School of Economics
Advocacy Drives Growth study

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Key #1: Plan Full Use of Customer Feedback
Marketing
Sales
Customer
Engineering
Production Human
Resources
Engineering
MarketingFinance
Sales
Traditional View Customer-Centric View

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Customer A Customer B Customer C
Product A + + + High Profit Product
Product B + Profitable Product
Product C - - Losing Product
Product D + - Mixed-Bag Product
High-Profit
Customer
Mixed-Bag
Customer
Losing Customer
SOURCE: Thomas N. Petro – “Profitability: The Fifth ‘P’ of Marketing”, Bank Marketing
Customers High Margin Medium Margin Low Margin
Many Accountable Reactive Basic or Reactive
Medium # Proactive Accountable Reactive
Few Partnership Proactive Accountable
Key #2: Listen to Right Customers in Right Way
SOURCE: Kotler & Keller – Marketing Management, 12th Edition

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Customer
Segment
-ation
Market
Selection
/ Focus
Value
Position
-ing
Product
Develop
-ment
Service
Develop
-ment
Pricing Sourc
-ing
Making
Distribut
-ing
Servicing
Sales
Force
Sales
Prom
-otion
Adver
-tising
Choose the Value Provide the Value Communicate Value
Databases
Automation
Custom Messages
Custom Services
References
Games, Rewards
Communities,
Web 2.0
etc.
Surveys
Advisory
Boards
User Groups
Lost Sales
Complaints
Lifetime Value
etc.
Total
Customer
Analysis Customer
Value
Guidance
Usability
Ethnography
Lifecycle Analysis
Purchase Process
Post-Purchase
Complements
etc.
Sales
Service
Billing
Switchboard
Website, Ads
Collateral,
Events
etc.
Data Ownership
Root Causes
Action Plans
Leading
Indicators
Prediction
etc.
Customer-Focused Value Chain
Touchpoint Alignment
Total Experience Innovation
Loyalty Behavior
Programs
Key #3: Integrate Intelligence Sources & Actions
Customer Experience Management (CEM)

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CEM: Take Advocacy To The Next Step
Traditional
Advocacy
Advantage
Go To The
Next Level
Expedite issues
for big customers
Retain large
accounts
Prevent issues systematically &
Align effort with lifetime value
Rewards, Communities,
Experiential marketing,
CRM
Increase
revenue
Ensure seamless touch-points &
Prevent hassles
Advisory boards,
Reference programs,
Surveys
Become
customer-centric
Embrace negative feedback via
value-chain involvement
Product user groups,
Usability testing
Improve
product performance
Expand inputs to include the
customer’s full experience with brand
Customer service Maintain use
of product
Add customer-focus to value chain
behind service functions

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What Is The Difference?
Customer
Experience
Management
Customer
Advocacy
Customer
Engagement
Customer
Relationship
Management
Customer
Satisfaction
Customer
Loyalty
Experiential
Marketing
Customer
Retention
User
Experience

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Typical Customer Programs – Not Connected!

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Subset: Experiential Marketing

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Subset: Loyalty Behavior Programs

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Subset: CRM

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Subset: Customer Profiles
CLV, Customer Analysis

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Subset: Customer Touchpoints

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Subset: Experience Innovation

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Customer Experience
Management (CEM)
CRM Customer
Engagement
Experiential
Marketing
Online
Communities,
Blogs
Automation:
Sales Force,
Customer Service,
Marketing
Total
Customer
Analysis
Internal
Branding
Customer
Value
Games,
Rewards
Total
Experience
Innovation
Loyalty Behavior
Programs
Events
Customer-
Focused
Value Chain
Customized
Messages
& ServicesReferences,
Advisory
Boards,
User Groups
Surveys
Touchpoint
Alignment
CEM: Do The Whole Job
Subset: Internal Branding &
Customer-Centricity

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CEM: Doing the Whole Job
Ritz
Carlton
Starbucks
Apple
Singapore
Airlines
Mini
Cooper
American
Express
Sony
Amazon

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See more like this in ClearAction Insiders!

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If You Like These Concepts, Get the Book!
>30 Tools &
Techniques
Step-by-Step
Guidelines

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If You Like These Concepts, Get the Book!
5 Keys Explained
>20 Tools &
Techniques
Step-by-Step
Guidelines

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If You Like These Concepts, Get the Book!
4 Keys Explained
10 Templates
Step-by-Step
Guidelines
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CustomerExperienceOptimization