Do Not Sell a Product. Deliver an Experience.

How Customer Experience can determine the success - or a failure - of a company

• Definition
• Why is Customer Experience important?
• How to measure the results
• Conclusions

When I started the study of the Customer Experience I realised that the topic was so vast that only one article could have not been enough. There are so many different facets, different applications, the advent of the digital transformation and its influence in the customer, the artificial intelligence and its benefits for a Customer Experience strategy and last but not least the implications of the current pandemic are only a few aspects to consider. In this article I will tackle some of them. Let’s move into this fascinating theme. 

Definition

The times when shopping meant only picking up products and put them in a trolley are over. Today even in a supermarket customers are channeled through aisles and shelves towards the cash desk. What is Customer Experience or CX as they call it? There isn’t a single definition. One is: CX is the sum of every interaction a customer has with a business pre-during-post sales. Or How the customers perceive their interaction with a company. Or even: CX is the impression the company leaves on the customers resulting in how they perceive your brand across every stage of the customer journey. They are all good and valid definitions although there is one that I can’t get out of my head since I read it: CX is something many brands pay lip service to, but ultimately fail to provide (77% according to a survey from Accenture). Ouch! On the other hand there are also many other companies that embraced Customer Experience as a strategy and succeeded.

Why is Customer Experience important?

The Customer Experience can be implemented in many different ways. There is no right or wrong because there are many variables at play. The industry, the company, the products, the clientele etc. Summarising its importance in each and every case is a gigantic job and could diminish the strategic value of the Customer Experience itself. What is important to remember is that the CX brings value in the emotional connection between customer and brand. And this is extremely important especially in a (digital) world where the customer is offered a variety of different options to choose from. Also do not forget that the way you treat your customer defines who you are. It is an important part of the promise you make to your customers. It defines how they see you and how likely they are to buy from you. Not even mentioning the importance of the recommendation to friends and family that are incredibly valuable for your customer. According to Nielsen’s Global Trust in Advertising Report 83% of the respondents said they trust recommendations from family and friends more than any other form of advertising. Digging a bit more in the research we find that: 

• 55% no longer trust the companies they buy from as much as they used to
• 65% do not trust company press releases
• 69% do not trust advertisements
• 71% do not trust sponsored ads on social networks.

Nowadays, with the help of social media, the sharing hence the recommendation is instant. Therefore as you can see CX becomes the new strategic pivotal point and this is why it is so important.

How to measure the results

The measurement is the difficult part. CX is hard to measure with a KPI or a specific number, but it has an outsize impact on whether your customers are happy and loyal to your brand. Sharing is so easy and quick through social media. The same is for negative reviews, they travel at the same speed but are more dangerous. That's why it's so important to be mindful of trends so you can quickly adapt your strategy. NPS or Net Promoter Score for instance is a way to measure how likely your customers are to recommend you to a friend. Through NPS you can also evaluate customer loyalty. It also helps evaluate the likelihood of customers churning i.e. cancelling their subscription or not repurchasing and seeking out a product or service from a different company.

Conclusions

As mentioned at the beginning, the topic of Customer Experience is huge. There is still much more to discover and to discuss. For instance how to create a CX strategy and which elements to take into account. What has proved to work and what are the most common mistakes. And, in light of the current pandemic, how the CX can give a competitive edge in the medium term. How you can express a radical empathy through CX practice. How digital can leverage CX. Diversity, inclusivity, sustainability, social consciousness and digital ecosystem can all be part of the experience of the customer. I will tackle these aspects in the next articles. Till then what do you think about Customer Experience? Did you implement CX in your customer-oriented strategy yet or will you? In the meantime I look forward for your comments and feedback!

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