CH 8: Customer Experience Embodiment of Brand Flashcards
what is a customer experience?
The interactions between a customer and a
company throughout the span of their relationship.
What is CXM?
process of surveying, analyzing, and enhancing customer interactions with your business
Give 4 reasons as to why customer experience is important?
- Increases customer retention
- Increases revenue
- Improvement of marketing and commercial actions (gained from customer info, you send the right messages, launch products [c.a.], at the right time to the right people)
- Brand Advocacy- so satisfied from their experience, that they want to share it with others
Elements of a Good vs Bad CX
Good:
Workers who prioritise listening to customers,
Feedback collected, analysed and acted on regularly,
Less tension (back and forth- like we can’t do this, you would have to do this, i’ll see what I can do) and personalized solutions
Bad:
Long wait times,
unresolved issues/questions,
workers who do not understand customer needs
What is a Company Brand?
name, design, symbol, or any other feature that distinguishes, one seller’s good or service from those of other sellers.
What are the 4 reasons for the “gulf” between the brand and the customer experience?
New concept
The customer experience is a new paradigm and the connection with the brand is only just gaining credence.
Marketing people: length of time in post
We have seen many marketing people move jobs frequently. Change in staff can disrup the process, especially change in marketing leadership( they usually seek to change everything the proceeding manger did)
Measures and targets
Inappropriate measures and targets for brand and CX success- Not actually capturing what they need to focus on.
So if the measure is return rate- how does that translate the customer experience
And if the target is 10% as it is better than the average, what about the 90% that are left behind?
So they think about hit rate and return rate, but not the other side- the other customers who have a poor or bland customer experience
hit rate- no of sales/online visits, panned call, company visit to find our about the product
Cultural Golf
Distance between brand departments and the front line. Brand departments are advocating, but sales people are just trying to serve customers.
Stages of the CX
Expectation Setting- PR, ads, word of mouth
Pre-Purchase Interactions- Here you are gathering info for purchasing decisions. You would interact with sales, customer service
Purchase Interactions- Starts when a customer decides what to buy. Sales, customer service, delivery, billing
Purchase Consumption- Help lines for further assistance, billing, customer service
Post experience review- market research
Benefits of CX
Reduce customer churn rate
Increase retention and loyalty
strengthen customer relationship
How to measure CX
- CSAT- Customer satisfaction: Customer Feedback metric
Uses questions: “How satisfied were you with your experience?”
Through this metric,
customers range their satisfaction level either on a scale ranges 1 – 3, 1 – 5, or 1 – 10 or on the agree/disagree scales, stars, or smileys. - Measuring Net Promoter Score (NPS)
* With a simple NPS Question - “On a scale of 0-10, how likely are you to
recommend us to your friends or colleagues? Based on the response, customers are categorized as follows:
Detractors - These are customers who gave a score of 0-6. They are
disloyal to the company and likely to badmouth the organization.
Passives - These are customers who gave a score of 7-8. They are
moderate towards the company and may switch if a better option is given.
Promoters - These are customers who gave a score of 9-10. They are very
loyal to the company.
- Measure the Customer Churn Rate
* Churn rate refers to the number of customers that don’t return to your company
after purchasing due to a bad customer experience
Churn Rate % =
Number of Churn Customers ÷ Total Number of Customers 100. ✕
- Analyse customer support ticket trends
CES Surveys: This specifically measures customer experience after a service interaction.
It gauges the amount of effort a customer had to use to use the product or service, find the info they need, or get an issue resolved
For example, post a complaint ticket that has been raised by
your customer and resolved by your team members and agents; you can send a CES Survey to ask customers for their feedback about the ease of
getting their issue resolved.
What can CSAT do?
can boost the customer satisfaction rate and provide an opportunity to improve the organizations’ products and services
How to deliver a great customer experience
Convenience- make sale process, problem solving, navigation of website easier
Personalization- Solutions for individual context
Product or service quality- make product more appealing/ service better- effecient
What are some Customer Pitfalls to avoid?
Continuous waiting
Too much automation
Slow or no resolution to customer issues
Ways To Improve Customer Experience (3)
Empower your employees- remove limited power and red tape. Allow them to make decisions that can benefit the customer
- Value employees’ ideas- Employees in front-line positions who contact
with clients are in a special position.
Improve your customer service- Staff needs to be taught, coahced in ways to build customer experience
Create self-service options for better customer experience-
like FAQ’s, knowledge base, automated call center, mobile app
what are six laws of the customer experience
- Every interaction creates a personal reaction- reactions will be different, to each his own
- People are instinctively self-centred- Companies must overcome this tendency to see things through the customer’s perspective instead
- Customer familiarity breeds alignment- so each functional area comes and aligns its processes to better understand the customer
- Unengaged employees don’t create engaged customers- if they aren’t actively devoted/committed to the company, they won’t get the customer to be devoted to the brand either. Leadership must ensure workers feel valued and supported and buy into the company’s mission
- Employees do what is measured, invented and celebrated- Give adequate rewards, leadership identify desired behaviours and recognize workers who demonstrate these.
- You can’t fake it.- Leadership must model their commitment to the customers, not just say it. They must put strategies in place, be on the frontlines, and rap with workers to get more information and possible ideas to enhance CX
