It is said customers don’t compare brands to their competitors, they judge them against the best customer experience they’ve ever had. Data supports that adage—customer experience (CX) will overtake price and product as the key brand differentiator by the end of 2020, according to a recent Walker study. Other research has found consumers are willing to pay more for a better customer experience. This presents a fantastic opportunity for businesses, but how do you start building a great CX strategy?
Throughout 2019, Carpe Diem Global Partners has spoken with a broad set of 90+ consumer technology leaders—ranging from Fortune 500 to the smaller, more agile, venture-backed—about what makes a good customer experience and how they determine if their organization is succeeding in providing one. “Customer experiences have transformed dramatically in recent years, creating expectations of personalization, efficiency and seamlessness across all industries” said Debbie Gonzales, Managing Partner for Carpe Diem Partners and former CMO and Chief Brand Officer.
In work with our clients and candidates, we’ve found that these steps are key for building a CX that boosts customer satisfaction, builds loyalty, and increases revenue.
Define what makes a good customer experience
A customer today interacts with a company across a variety of channels and devices, often without speaking with a single person. While technology has undoubtedly made these interactions easier for both companies and customers, done poorly they can feel shallow and generic. The leaders we spoke with stress that an element of empathy should underlie every touchpoint with the brand. Understanding and anticipating the customer’s wants, needs, and pain points—even as they evolve—is the foundation of a good customer experience. Interaction with the brand should be consistent and frictionless wherever it takes place. Not surprisingly, white-glove customer service is considered a lynchpin of a positive customer experience. “For the customer, a good experience is ‘when the brand is starting to know me,’” one leader said.
Monitor critical KPIs
The old model of customer feedback is inadequate for measuring today’s complex customer journey. What customers do during your brand’s CX is more telling than what they say about it. The KPIs used to determine CX success depend on the organization and its goals, but some KPIs are more popular with our leaders than others, including customer acquisition and retention rates, customer engagement and satisfaction, and LTV. Net Promoter Score (NPS), which measures a customer’s potential to recommend a company’s products or services, is also commonly used.
Maximize LTV drivers
Most companies believe customer experience is the most important factor in increasing customer LTV. Depending on the company, different levers have been found to have a greater impact on improving LTV. Our leaders identified a range of methods that have brought success, from prioritizing the initial interaction with the brand, to educating customers on the use of the product, to setting high customer service standards. “A trained, experienced agent with good listening skills is critical,” said one leader.
Tap into to CX tools
Customer-centric technology makes it easy to engage customers on multiple channels while increasing organizational efficiency. Our leaders rely on a variety of these tools to manage the customer experience. CRM platforms such as Salesforce and Zendesk are critical for managing the overall CX, allowing brands to keep in contact with customers, learn their habits and preferences, and create a consistent experience for them. AI-powered chatbots such as LivePerson and Chatbox are favorites for automating messaging on websites and social networks. On the back end, data tracking and reporting platforms such as Google Analytics and Adobe Analytics are integral to understanding customer behavior across the brand’s channels and improving the user experience. Even with these sophisticated programs at their disposal, most of our leaders still see email as the most useful tool for improving the customer experience, citing it as their preferred channel for reaching customers with personalized messaging and educating them about the brand’s products. “The email channel is not dead,” said one leader. “It has just evolved.”
With customer experience becoming a greater business driver in the coming year, leadership that can guide organizations through the CX transformation is imperative. “It’s critical that all leaders across the business have a customer-centric mindset and spend time ‘walking in their customers’ shoes’. Living the customer journey can help to quickly uncover gaps and opportunities.”
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for consumer and technology-oriented companies. For deeper, custom insights, contact the firm at info@carpediempartners.com.
Carpe Diem Partners is a consultancy focused on Talent Management and Acquisition for Boards Members, Chief Executives and Senior-Level Executives; Advising Public, Private and Investor-backed companies on leadership imperatives. Headquartered in San Francisco, CA with national presence and global experience in all regions. For more information, contact us at info@carpediempartners.com.