Customer Experience Management: A Comprehensive Strategy

What is customer experience?

Customer experience (CX) is the holistic perception a customer has of a company and its products or services, encompassing all interactions and touchpoints throughout the customer journey. It covers a range of emotions, perceptions, and reactions experienced by consumers, through interactions with the brand be it in person, online, or secondhand because of others’ experiences. CX incorporates a combination of conceptual and functional features of a brand’s proposition, as well as customers’ emotional and psychological responses.

Essentially CX is the impact of brand interaction on customers’ feelings. The same holds for firms selling to other firms (B2B) and firms selling to consumers (B2C). It is their journey—one that, when designed thoughtfully, leads to satisfaction, loyalty, and advocacy.

While it’s tempting to narrow CX down to a single interaction, such as making a purchase or receiving customer support, true CX spans the entire lifecycle of a customer’s relationship with a brand. It covers every second, from the moment a TV advertisement is seen and heard about the brand to the moment a product is used and the feedback is shared. By looking at CX holistically, organizations can better understand and develop it.

The importance of seeing through the customer’s eyes

For CX to truly improve, businesses need to take on the customer’s point of view. Customers don’t see organizational silos—they see one entity. That is, each department including marketing, sales, customer service, and logistics must cooperate to provide an integrated experience.

A key starting point is understanding how customers perceive your brand. This involves asking questions and gathering feedback, even if the answers may be uncomfortable. Whether or not businesses actively seek customer feedback, customers will form opinions.  By proactively seeking insights, companies can empower themselves to make informed decisions to enhance CX and stay in tune with emerging customer experience trends.

How to build a successful customer experience strategy

Developing a robust CX strategy requires thoughtful planning and execution. Here are five foundational steps to get started:

1. Understand CX and its influencing factors

Begin by assessing your current and future CX goals. Describe the tools and technologies necessary for these purposes, e.g., a contact center system to communicate, or a CRM to maintain customer information.

Integrating systems like Unified Communications (UC) and CRM can help create a seamless experience. For instance, a UC platform enables contact center agents to collaborate with subject matter experts across the organization to resolve complex customer issues. Similarly, CRM systems act as data hubs, providing agents with valuable customer insights during interactions. 

Also, adding an AI chatbot is another key factor. AI chatbots in customer service can offer immediate support, handle routine inquiries, and escalate more complex issues to human agents. This not only improves response time but also ensures customer satisfaction.

2. Empower CX leadership

A strong CX strategy requires executive leadership, often in the form of a Chief Customer Officer (CCO). Organizations that have a CCO are known to be more successful in terms of sales/revenue, customer satisfaction, and operational efficiencies. The role of the CCO is to promote CX activities and carry out the required set of changes to optimize the customer journey.

3. Allocate adequate budgets

Investing in CX is crucial for staying competitive. Budgets should prioritize key areas such as contact center platforms, CRM systems, and advanced tools like AI and analytics. Lack of investment may lead to dissatisfaction with customers and lost business.

4. Plan for continuous transformation

CX is not a one-time activity, but a cycle. Continuous evolution consists of the application of new or currently existing technologies to enhance not only customers’ but also employees’ experiences. Projects may include:

• Worker-focused improvements, such as better workforce optimization and training.
• Channel-related enhancements, like adding chatbots, generative AI, or virtual assistants.
• Foundational updates, including platform integrations or adopting management tools.

5. Gather and act on customer feedback

Feedback is essential for understanding what customers value. Incorporate mechanisms to collect feedback during interactions, such as surveys, focus groups, or social media engagement. For example, a brief survey at the end of a chatbot conversation can provide actionable insights.

Real-world examples of improving CX

1. Starbucks: Gamified loyalty program

Starbucks uses gamification in its loyalty program, where customers earn stars through purchases and challenges. These stars can be redeemed for rewards, creating a fun and engaging experience that boosts customer satisfaction and brand loyalty.

2. Zalando: 100-day return policy

Online fashion retailer Zalando offers a generous 100-day return policy, allowing customers ample time to decide if their purchase meets their expectations, thereby enhancing trust and satisfaction.

3. BMW: Automated surveys

BMW employs automated surveys to gather feedback at various touchpoints. If expectations aren’t met, a ticket is created for further evaluation, enabling the company to address gaps and improve services.

4. Ikea: Self-service checkouts

Ikea introduced self-service checkouts to reduce waiting times and enhance convenience. Staff are available to assist if needed, ensuring a smooth shopping experience.

5. About you: Personalized shopping

About You, an online fashion retailer uses algorithms to tailor product recommendations based on a customer’s behavior, making the shopping experience more relevant and enjoyable.

6. Decathlon: Virtual reality tents

Decathlon employs virtual reality to showcase camping tents, allowing customers to explore options without physical setup. This innovative approach enhances convenience and decision-making.

7. Media market: Delivery tracking

Electronics retailer Media Markt provides real-time delivery tracking and proactive notifications, helping customers plan better and avoid unnecessary waiting.

8. McDonald’s: Self-order terminals

McDonald’s introduced touchscreen terminals for faster and more customizable ordering, improving the overall dining experience.

9. Casper: Chatbot companion

Mattress company Casper created a chatbot for late-night users, offering engaging and entertaining interactions that strengthen the brand’s connection with customers.

10. Netflix: Personalized recommendations

Netflix uses AI to suggest movies and shows based on viewing history, enhancing user engagement and satisfaction.

11. Coca-Cola: Personalized bottles

Coca-Cola’s “Share a Coke” campaign featured bottles with popular names, creating a personal and memorable connection with customers.

Conclusion

Customer experience is a critical factor in business success. By understanding CX holistically and implementing a comprehensive strategy, businesses can create memorable experiences that foster loyalty and drive growth. Customer understanding, high-performing leadership, and investing in the right tools and technologies are critical elements for creating best-in-class CX. Real-world case studies from top brands show that even a few, clever tweaks to a product can have a dramatic effect on how a customer thinks of and engages with a brand.

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