Customer Experience FAQs.

The goal of customer experience is the retention of existing customers and acquisition of new customers. When brands provide emotionally rewarding experiences this creates memorable moments that customers want to continue to experience and recommend to their family and friends. Customer word-of-mouth has a key role in influencing purchasing behaviour. When a customer’s needs are met and they have a positive experience that’s emotionally engaging, they are more likely to advocate the brand.

Find out more about Customer Experience in the new book from our CEO Alex Allwood’s, Customer Experience is the Brand

The economic value of Customer Experience adds up, with increased revenues from positive word-of-mouth, higher customer retention and greater market share, coupled with decreases in marketing and service costs. Watermark Consulting and Forrester financial performance study demonstrates the impact of effective Customer Experience strategy. The research shows the 8 year stock performance of Customer Experience leaders v laggards in comparison to the S&P 500 between 2007 and 2014.

‘Leaders outperformed the broader market, generating a total return that was 35 points higher than the S&P 500 Index.’

‘Laggards trailed far behind, posting a total return that was 45 points lower than that of the broader market.’

Today, the customer purchase journey is complex and bridges both the physical and the digital. Many organisations still continue to view customer purchase behaviour through the lens of the traditional purchase funnel, not accounting for how the path-to-purchase is being influenced by a vast number of touchpoints and rapidly evolving technology. Customer journey mapping is a strategic tool that captures key insights into complex customer behaviour and delivers greater clarity around the customer’s needs at each intersection; the gaps, pain points, moments-of-truth and where the opportunities lie for touchpoint optimisation and improvement. Our CX Framework uses journey mapping to gain a clear picture of customer needs and expectations before optimising or redesigning the brand touchpoints.
Getting customer-first alignment across the business is paramount to the success of your Customer Experience program. An imperative to success is the executive leadership team buy-in, with focus on allocation of resources and investment to improve experiences, and driving accountability to impact customer growth.
Today’s customers are better informed in their purchasing decisions, and increasingly have an interest in brands that deliver value and provide a positive impact in their lives. The power of ‘why’ delivers a brand its purpose, cause or belief and inspires an organisation to do what it does. Their purpose is weaved into the fabric of their culture; they think, act and communicate not from what they do, but WHY they do it. Purpose defines the brand behaviour both internally and through every customer interaction, including its people, culture, products and communications.
A great customer promise connects a brand’s purpose, value and positioning to articulate what the customer can expect to receive in their interactions with the brand. Organisations today need to pay close attention to the gap between what the brand promises and what customers experience. Most brands are not built to deliver great experiences, with siloed cultures and legacy systems and processes.
What’s needed now is an outside-in, customer-first approach using closed-loop customer intelligence, agility to navigate and manage the gap between delivery and customer feedback, and cross-functional systems and processes. Importantly brands not only need to continually reiterate their brand promise at every customer touchpoint, but deliver on their brand promises too.
Co-creation and crowdsourced innovation can be applied to any sized problem or opportunity and is essentially generating value from open innovation. This is the process of creating products, services and experiences in collaboration with customers in exchange for a voice in what the brand creates; the process ultimately delivering shared value. Customer group participation creates engagement and redefines the customer relationship, adding different perspectives and enriching the process of experience design.