This document discusses customer experience (CX) and how it differs from customer service (CS). It provides examples of key aspects of CX including buying channels, communication, product usage, and price perception. CX aims to improve the customer experience at all touchpoints, while CS focuses on the post-purchase process. To build a distinct CX, the document recommends creating an organization-wide CX definition, training employees, setting CX targets, establishing a dedicated CX team, and communicating the CX culture to customers. Distinct CX can provide commercial benefits like increased customer loyalty, brand advocacy, revenue growth, and market share expansion.
2. Where is Customer Experience (CX)?
Product Place
Price Promotion
CX
- Buying Channel
Channel availability, Ease
of engagement & buying
-Service Channel
Channel availability, Ease of
engagement, Customer
sensitivity, Delight mindset
- Communication Credibility
- The communication doesn’t
make unrealistic claims
- The communication is
humble and respectful
- The communication should
not be offensive or on-the-face
trying to grab attention
-
- Product usage attributes
Quality, Performance,
Reliability, Engagement
- Product Claim vs Reality
Superiority, Outcome
Differentiation, Function
- Fair Price Perception
- The product/service deserves the
price charged
- A competitive product with strong
PoDs and PoSs isnt cheaper
- Service/Repair cost doesn’t make
the product ownership a ‘trap’
3. Difference between CX and CS
Customer
Service (CS)
Post-purchase process
Separate team to handle
Often a differentiator
Lends heavily to brand credence
Often the most painful process in buying
cycle
Customer
Experience (CX)
Experience at all touch points
Mostly a ‘slogan’ followed by the regular
teams
Not worked upon and looked at as
differentiator
Touches all aspects of brand and helps in
journey through brand pyramid
Aims at making all touch points, including
customer service a trouble-less process
CS CX
CX over CS
4. What is (not) happening with CX?
No clear understanding of role of customer experience in customer buying and post-purchase cycle
No authority or dedicated teams for CX in organizations
Lack of clear internal communication around the overall CX culture a organization needs to imbibe
No communication to customers about how the organization is striving to improve CX at all touch points
Weak efforts to align channel members on the overall CX program defined and followed by the company
Instead, me-too propositions are thrown in air to pretend to be highly involved in CX improvement
Unstructured and in-part implementation of the CX programmes. CX is always in totality
5. Why distinct and top-class CX is more
important than ever in these times?
Quantum and quality of experience by customers
• Channel ( Customers are experience great CX through variety of channels)
• Online marketplace, Modern trade (Easy returns, CoD, Quick refunds etc)
• Across sectors (CX is sector agnostic , all kind of experiences build expectations)
• Travel, Retail, Education, Healthcare (International brands are up-ping the game)
• Experience with brands in international markets by Indian travellers influence
expectations from the local or other MNC brands
Need for differentiation
• Brands’ strength lies in differentiation
• CX is the new ladder to differentiation and stronger brands
• Ever increasing competition from multiple channels & substitutes
Customer profiles
• More knowledgeable, well travelled and highly connected/networked
• Pampered and always looking for more value and better experience
• Want to reduce decision making time, Brands and CX can help in doing that
Arrest switching
Build Loyalty
Invoke advocacy
Create brand PoDs
Reduce decision-making
Encourage association
Customer level
(Perceptual) benefits of a
distinct CX
6. How to build a distinct CX?
Creating an Organization-wide definition of Customer Experience(CX) and its extent
Weave a culture around CX, preferably in line with the existing vision and mission statements
Training and awareness for employees and channel members on CX
Targets for improvement of CX (Qualitative and Quantitative) based on customer delight factors
Creating a team specifically responsible for monitoring, measuring and improving CX at all touch
points
Cross functional team to implement the first time CX plan at all the touch points
Structured but extensive communication to the customers about the culture around CX and customer-first
concept
7. Commercial Benefits
Customer Loyalty
•Repeat Purchase
•Assured revenue flow in future
•Brand Premium
•Margin improvement (Bottom-line improvement)
•Channel strength (Placement, exclusivity, margins etc)
•Higher seller power with channel members
Brand Advocacy
•New customer acquisition
•Revenue increase
•Market share expansion
•Economies of scale reduces cost per unit of product/service
BenefitsBenefits
Enabler
Enabler
CX
Benefits
Top-Line
Bottom-
Line
Market
Share
Cash-
flow