Table of contents

• What is “Customer Experience”?

  What is “Customer Experience”?

  Defining Customer Experience (CX)

  Bruce Temkin, Managing Partner of the CX Institute and Co-Founder of the Customer Experience Professionals Association, defines customer experience (CX) as “the perception that customers have of their interactions with an organization.”

  This definition, while straightforward, understates the myriad underlying business processes necessary to affect those perceptions. From evolving technologies and growing competition to waning consumer attention, there is a greater need than ever for a smarter approach.

  Changing Customer Expectations

  Not so long ago, consumers were considerably limited in how they could communicate with a brand. They could talk directly to an on-site representative, write a letter to management, or phone up headquarters.

  As new technologies developed, the methods, as well as speeds, of communication have increased exponentially. Customers absorbing these digital developments now have greater demands regarding transactions and service.

  But are consumer expectations truly higher, or are companies simply struggling to keep up? It’s an undeniable fact of business that marketplaces and attitudes change, so it’s logical that business processes must change as well—particularly those involving CX.

  Are you exceeding your customers' expectations?

  of respondents agree

  of respondents disagree

  Yes

  Fantastic, keep it up! Of customers polled in “Trends 2016: The Future of Customer Service,“ 73% say that valuing their time is the most important thing a company can do to provide them with good service.

  Keep reading to learn more

  No

  It sounds like there’s room for improvement but rest assured, you’re not alone. According to Accenture, only 7% of brands say they’re currently exceeding expectations when it comes to customer experience. Is your business up for the challenge?

  Keep reading to learn more

• Welcome to the Era of Smarter CX

  Welcome to the Era of Smarter CX

  It Starts at the Top

  Organizational leadership drives business culture through every department, to each employee. If your company has internalized customer-centric core values encompassing respect and service, these values will naturally reveal themselves.

  This organic demonstration is crucial, because this also means that each individual in your company from the most seasoned executive down to the newest intern has the opportunity—and the responsibility—to provide an exceptional experience for your customers.

  Brands must overcome inherent resistance to change because rapidly evolving customer needs are redefining business viability. A CX strategy is no longer a “nice to have”—it’s an undeniable must-have. Harvard Business Review surveyed 600 executives and managers of the world’s biggest brands and found 86% of business leaders agree that CX is vital for success.

  Is it viable for you to use CX as a competitive advantage?

  of respondents agree

  of respondents disagree

  Yes

  It’s clear you already realize the importance of CX, and we agree. We’ve found that 75% of brands want to use CX as a competitive advantage and 49% of executives believe customers will switch brands due to poor CX.

  Keep reading to learn more

  No

  Research shows 40% of brands realize people do more research on their own before making a purchase, which means your customers are more selective and savvy than ever. Creating a positive experience is one way to make your business stand above the rest. Additionally, Harvard business Review found that 15% of companies who are ahead in their use of technology have grown more quickly in the past year than their competitors. It’s time to make CX your differentiating factor.

  Keep reading to learn more

  Complex Internal Systems

  Beyond swaying corporate attitudes, CX leaders face the additional challenge of increasingly complex internal systems.

  A single point of contact no longer exists in the business world. In today’s digital world, a dizzying network directs the flow of customer information, requiring infrastructure for seamless, intelligent, omnichannel interactions.

  

  It’s common now for a single transaction resolution to require one customer interacting with multiple brand representatives, with several visits, calls, emails, and/or social posts transpiring in the process. Unfortunately, all too often there is a disconnect between these touch points.

  At best, such disconnects create inconvenience for both consumer and business. At worst, critical information could be miscommunicated or lost entirely.

  Do you have a dedicated budget for advanced CX initiatives?

  of respondents agree

  of respondents disagree

  Yes

  You’re ahead of the curve. According to Forrester, 72% of leaders say improving customer experience is a top strategic priority yet only 37% have dedicated budget currently in place for CX improvement initiatives.

  Keep reading to learn more

  No

  You’re in the majority now but it may be time to rethink your position. Forrester found that 72% of businesses say improving customer experience is a top strategic priority although only 37% currently have a budget in place for CX improvement initiatives.

  Keep reading to learn more

  Simplify. Innovate. Deliver.

  When the customer experience is put into the spotlight, a primary need becomes clear: businesses need to stop talking about CX in the abstract and instead start developing specific initiatives that can be measured and optimized.

  By coordinating three specific and connected components—Data, Experiences, and Intelligence—you, too, can “Simplify. Innovate. Deliver.”

• Connected Data

  Connected Data

  Integrating

  To make the customer experience as frictionless as possible, it’s critical to remove data silos and unify Marketing, Sales, Service, and Commerce initiatives in order to deliver relevant interactions.

  But as Google’s Econsultancy report, “The Customer Experience is Written in Data,” reminds us, each interaction creates a stream of digital information that leaves implementers with a growing pile of data.

  How many software systems do you have that store customer data?

  of respondents agree

  of respondents disagree

  1–3

  With a limited number of systems in place, you are likely in good shape as far as collecting and integrating your customer data. As the number of systems you have increases, make sure you’re managing closely and not adding unnecessary complexities or duplications

  Keep reading to learn more

  4 or more

  Because you have several systems implemented, it might be time to take a closer look for any areas that could be streamlined for optimal efficiency.

  Keep reading to learn more

  Strategizing

  Data needs to be gathered, transformed, analyzed, and turned into actionable insights before it’s useful, but it’s essential that brands first strategize about what to collect and how it will be used.

  

  Different departments will, of course, have differing processes and goals. Try to incorporate those needs but at the same time think more broadly about how collecting data can benefit the overarching business in regards to improving the overall customer experience.

  Personalizing

  From the brand point of view, personalization makes good business sense. Harvard Business Review found that personalization can reduce Customer Acquisition Cost (CAC) by as much as 50% and increase marketing spend efficiency by 10% to 30%. Highlight Share

  For CX, it makes even better sense. One Accenture report concluded that 75% of consumers are more likely to buy from a retailer that personalizes. Infosys demonstrated that 74% of customers feel frustrated when website content is not personalized.

• Connected Intelligence

  Connected Intelligence

  Introduction to Connected Intelligence

  Harvard Business Review author Michael Schrage shares a key insight: “Innovation is an investment in human capital—in the capabilities and competencies of your customers. Your future depends on their future.”

  Developing trends in technology are already shaping new consumer habits. Businesses who fail to respond to these changes will lose more than just immediate market share. They’ll lose valuable insights that will help them evolve their CX.

  Artificial Intelligence/Machine Learning

  Artificial intelligence (AI) processes are able to create relevancy and specificity on the fly, which leads to better, faster, and more personal customer experiences. In addition, companies that implement machine learning networks find business outcomes continuously improve as the system reacts, learns, and adapts. This can provide tremendous savings in time and money resources across departments. Highlight Share

  AI can be considered a kind of digital collaborator that can take human intelligence to the next level. Booz Allen Hamilton Vice President Angela Zutavern observes, “Machine intelligence can give you answers to questions that you haven’t even thought of.”

  Augmented Reality

  Augmented Reality (AR)—computer-generated technology in the forms of graphics, video, and/or sound that overlays, or “augments,” information on a live view of the physical world—is a rapidly developing arena for enhancing CX.

  By adding contextual information to real-world moments through smartphone apps or digitally enhanced glasses, AR can “retain more customers, increase learning and engagement, generate more revenue and better ROI, and improve productivity,” states Dan Brooks, Oracle Product Marketing Manager, Mobile.

  AR offers even more value when implemented in critical situations. Consider, for example, how AR might be used in healthcare. In an extremely time-sensitive environment typically fraught with high levels of stress, consequential errors are all too easy to make.

  Internet of Things (IoT)

  We define the Internet of Things (IoT) as a vast interconnected system that represents the nexus of the physical and digital universes. Much more than just a new initialism, IoT is a growing revolution in technology.

  Gartner forecasts that 8.4 billion connected things will be in use worldwide in 2017, increasing to 20.4 billion by 2020. Highlight Share Consumer-focused interfaces such as fitness devices, in-vehicle apps, and voice-controlled smart speakers like Amazon Alexa and Google Home all work by connecting, analyzing, and integrating data intelligence.

  Chatbots/Virtual Assistants

  Chatbots provide a 24/7 speed advantage when it comes to receiving issues, but generally are most successful when restricted to a specific catalog of customer inputs and standard responses. It’s critical that brands continue to fine-tune their VAs and demonstrate seamless handoffs when needed between virtual and real assistants—such as when Marketing or Sales need to follow up chatbot sessions with relevant emails to prospects, for instance.

  That being said, chatbots are already proving their effectiveness. So effective, in fact, Gartner predicts that by the year 2020 the use of VAs will jump 1,000% and 10% of business-to-consumer first-level engagement requests will be taken by VAs, up from less than 1% today. Highlight Share

• Connected Experience

  Connected Experience

  Omnichannel

  The “omnichannel” paradigm shift of when, where, and how to service customers is a considerable one, and no small challenge to most businesses. Shoppers are living in a one-click world and your business must participate, especially because the greatest brands in the world are training consumers what to expect.

  Omnichannel CX starts with a business internalizing a consumer-centric approach. Saying “the customer comes first” isn’t just a catchphrase; it’s the driver necessary for survival. Based on analysis of S&P 500 data since 1950, McKinsey predicts that more than 75% of companies will be out of business by 2030, if the trend for losing customer relevance (i.e. neglecting your audience and buyers) continues.

  Using Data

  Businesses need to use data and intelligence to power every touchpoint on the consumer journey and make tangible improvements in the customer experience, but all too often there is a disconnect due to a lack of technology or processes.

  Despite its importance, 30% of brands admit they cannot develop an accurate, individualized profile for each customer and a similar percentage admit they are losing touch with customers because their interactions are not always relevant. Highlight Share

  Potential customers are expressing their questions, interests, objectives, and pain points from their initial investigation stages to eventual engagement. Existing customers are sharing their preferences, expectations, and experiences, which contribute to strengthening and maintaining mutually beneficial relationships.

  Customer Expectations

  The Pareto principle—more familiarly known as the “80/20 Rule”—says that roughly 80% of effects (businesses) come from 20% of the causes (customers). Yet globally, businesses spend far more on gaining customers than on retaining existing ones.

  An estimated $500B is spent on marketing with only $9B on customer service on actively maintaining relationships with existing customers. Mark Turner, SVP EMEA at Genesys, reasonably asks, “Marketing might get you new customers, but if you’re not looking after the customer experience, what’s the point?” Today, all departments are responsible for CX.

  How much do you think your revenue would improve if you could meet your CX goals?

  of respondents agree

  of respondents disagree

  A lot
  (more than 15%)

  You’re absolutely right. While results do vary across industries, Forrester has found that increasing an already excellent CX Index score by one point could drive revenue potential four times as much as increasing a poor CX Index score by one point.

  Keep reading to learn more

  A little
  (under 5%)

  Good CX is worth investing in no matter what. Even in the industry (airlines) with the smallest spread, Forrester showed that the CX leader enjoyed a healthy 5 percentage point advantage in global revenue. You should probably rethink your goals. Findings show that companies’ potential revenue loss for not offering a positive, consistent, and brand-relevant customer experience is 20% of annual revenue, or $400 million for a $2 billion company.

  Keep reading to learn more

• Conclusion

  Conclusion

  Winning the CX Trifecta

  When Marketing, Sales, Commerce, and Service are thoroughly integrated through processes and technology, both the business and its audiences are rewarded with a more relevant customer experience and greater mutual success.

  “Unless brands can analyze them as a cohesive whole they will never gain a complete picture of their customers,” reminds Michael Bornheim, CRM Consultant. Brands that can blend connected data, intelligence, and experiences will, in the end, achieve the winning trifecta to create and keep loyal customers.