| As customer experience management (CEM) | | | | Kroc's formula for consistency should be a |
| continues to gain importance in the minds of | | | | blueprint for any business operating in a |
| today's CEOs, more and more companies are | | | | multi-channel environment today. Managing each |
| taking on customer experience management | | | | channel as unique and different shouldn't be. Here's |
| projects to improve customer satisfaction, | | | | why: |
| develop better customer insights, nurture | | | | 1. Customers are increasingly expecting multiple |
| customer loyalty and advocacy, and improve | | | | channel options. According to a Sterling |
| customer lifetime value. The rapid rise to the top | | | | Commerce Study, 80% of customers surveyed |
| echelons of strategic priority has brought an | | | | feel it is important to have a choice of shopping |
| unfortunate side affect; numerous customer | | | | across multiple channels when choosing a retailer. |
| experience management myths have begun to | | | | Businesses with only a single channel option, or |
| form due to a flood of conflicting definitions, | | | | channels which are discrete and disconnected, will |
| perspectives and over-hyped promises. | | | | likely miss the boat. |
| For any company seeking to establish or improve | | | | 2. Customers expect the experience to be the |
| its CEM capabilities, it's important to dispel these | | | | same across channels. According to a survey |
| myths once and for all. | | | | conducted by Tealeaf, 85% of adults expect their |
| Myth #1: Net Promoter Score (NPS) is the Only | | | | online service levels to be the same as offline, an |
| Metric You Need | | | | increase of 3% from the prior year. Providing |
| The customer experience can be broad, long | | | | inconsistency across channels will only contribute |
| running, it can span channels, and is influenced by | | | | to customer frustration or confusion. |
| any combination of internal and external factors. | | | | 3. Customers will likely switch channels. As the |
| Attempting to measure it effectively with a single | | | | number of channels available to the customer |
| metric such as customer satisfaction or net | | | | continues to grow, so too does the challenge of |
| promoter score is overly simplistic and risky. | | | | providing seamless cross-channel integration. A |
| Effectively managing the customer experience | | | | customer experience that begins in one channel |
| requires effective measurement and management | | | | should transfer seamlessly and be continued in |
| of a portfolio of metrics that will provide a true | | | | another without interruption. Lack of consistency |
| measure of what is - or is not - working. | | | | across channels will only detract from the overall |
| The Net Promoter Score (NPS) is a measure of | | | | experience. |
| customer advocacy that was the centerpiece of | | | | While each business channel has unique |
| Fred Reichheld's 2006 book titled 'The Ultimate | | | | characteristics and can be used in different ways |
| Question.' The net promoter score is calculated by | | | | and for different purposes by the customer, each |
| taking the percent of customers who are | | | | channel experience should not be designed or |
| promoters less the percent of customer who are | | | | managed independently. Companies that are |
| detractors. Obviously, the higher the resulting | | | | seeking to establish or improve their total |
| number - the better. | | | | customer experience should focus on |
| While the net promoter score is an effective | | | | cross-channel consistency and seamless channel |
| measure of overall customer advocacy, it will not | | | | handoffs regardless of the business scenario. |
| address all of your potential CEM questions. Here's | | | | Simply put, maintaining discrete channels with |
| why: | | | | separate customer experiences won't cut it for |
| 1. Customer advocacy - or net promoter score - | | | | today's demanding customers. |
| measures only one dimension of the customer | | | | Myth #4: A Centralized Customer Database |
| experience. Focusing only on a single metric such | | | | Provides a 360-degree View of the Customer |
| as net promoter score means ignoring equally | | | | Establishing a 360-degree view of the customer |
| important dimensions such as customer | | | | has long been the holy grail of any CRM program. |
| satisfaction and customer loyalty. An effective | | | | Many companies consolidate their multiple |
| and comprehensive CEM program must take all of | | | | customer databases into a centralized customer |
| these dimensions into consideration. | | | | database and declare victory. Although establishing |
| 2. The net promoter score is only an aggregated | | | | a single customer database is foundational to a |
| measure of the total customer experience. | | | | 360-degree view of the customer, a customer |
| However, the number of factors and touch points | | | | database alone often won't provide your |
| that contribute to the overall experience can be | | | | company with a complete view of the customer. |
| numerous. Focusing only on an aggregate metric | | | | Here's why: |
| without understanding or managing the | | | | 1. A centralized customer database often contains |
| contributing factors can yield unpredictable results. | | | | only basic or static data including name, address, |
| Companies seeking to improve their overall | | | | account number, demographic and profile |
| customer experience must focus on managing | | | | information. Although this core information is |
| and measuring the underlying events that | | | | critical, it often won't provide historical information |
| contribute to an exceptional experience. | | | | regarding transactions or changes to address, |
| 3. The net promoter score does not necessarily | | | | account, or profile information. Without historical |
| equate to customer action. For example, for | | | | information, it's difficult to get a complete picture |
| every customer that says they would "definitely | | | | of the customer. |
| recommend" the company in a customer survey | | | | 2. Customer interactions can take place in many |
| may not make any actual recommendations. | | | | forms, at multiple locations, and across multiple |
| Companies seeking to realize tangible results will | | | | channels. Unless the customer database is |
| need to correlate their NPS ratings with other key | | | | specifically designed to store interactions, you'll be |
| business metrics such as new customer additions, | | | | missing an important element of your customer's |
| increase in profitability, or changes in market | | | | behaviors. |
| share. | | | | 3. Customer databases are often designed to |
| While NPS is an important CEM metric, companies | | | | support operational activities such as transaction |
| that are looking to establish or improve their CEM | | | | processing, order management, and billing. |
| capabilities will need to identify a more robust set | | | | Operational databases often lack robust customer |
| of metrics that will measure all dimensions of the | | | | analytics that are necessary to unlock the secrets |
| customer lifecycle. | | | | of the customer experience. |
| Myth #2: Customer Experience is Just a New | | | | 4. Customer feedback is often collected and |
| Term for Customer Service | | | | managed separately from customer information. |
| Customer service just doesn't measure up to the | | | | As a result, correlating customer sentiment to |
| customer experience. Make no mistake, customer | | | | specific customers or customer segments can be |
| service is as important as ever; delivering great | | | | difficult. |
| customer service is one of the most tangible and | | | | Although a centralized customer database is |
| visible methods for improving customer | | | | foundational to a 360-degree view of the |
| satisfaction. Customer service, however, | | | | customer, a database alone won't provide the |
| represents only a small fraction of the overall | | | | complete picture. Companies that are seeking to |
| customer experience. Companies that talk | | | | establish or improve their total customer |
| themselves into a false sense of accomplishment | | | | experience should look beyond customer |
| by focusing only on customer service are missing | | | | databases to more robust data warehousing |
| the bigger picture; customer experience | | | | capabilities that include a view of historical |
| encompasses much more that just customer | | | | changes, transactions, interactions, and feedback |
| service. | | | | that can provide a complete 360-degree view of |
| While customer service is important, focusing | | | | the customer. |
| solely on customer service misses the mark on | | | | Myth #5: CRM Software = Customer Experience |
| the bigger picture. Here's why: | | | | Solution |
| 1. Customer service often represents only a | | | | As CRM concepts have matured, the |
| subset of potential touch points: a receptionist, a | | | | hype-engines have been thrust into overdrive. |
| call center representative, or a restaurant waiter | | | | The resulting marketing can make it difficult to |
| or waitress. Each touch point does provide a | | | | differentiate between CRM and CEM. But make |
| significant contribution to how each customer is | | | | no mistake; Customer Experience Management is |
| treated. Even the best customer service, | | | | much different that Customer Relationship |
| however, won't rectify an otherwise flawed | | | | Management. Choosing a CRM software solution |
| customer experience. In contrast, the customer | | | | to solve your customer experience issues can |
| experience is broad and encompasses all touch | | | | miss the mark. Here's why: |
| points that can extend from the customer's first | | | | 1. CRM software is typically more functional |
| impression to their ultimate defection. | | | | (rather than process-centric) in nature. Many CRM |
| 2. Customer service often refers to human | | | | systems are designed to provide specific point |
| interaction with the customer. While human | | | | solutions to support CRM functions such as call |
| interaction is critical, consumers are increasingly | | | | center support, eCommerce, marketing |
| utilizing self-service alternatives via the internet, | | | | automation, or loyalty reward management. While |
| automated telephone response systems, and | | | | each point solution often works well, CRM |
| kiosks. According to a study by Pew Internet | | | | software solutions alone won't enable or help to |
| Study, 73% of adult Americans use the internet, | | | | manage the end-to-end nature of the customer |
| a touch point dimension that continues to grow | | | | experience process. |
| steadily. Customer experience initiatives must | | | | 2. CRM software is limited to the reach of its |
| consider all touch points and channels in order to | | | | technology and can't support or influence all touch |
| grasp the end-to-end scope of the customer | | | | points. While CRM software has come a long way |
| experience process. | | | | over the past decade, there are still customer |
| While customer service is an important | | | | experience touch points that can't be directly |
| component of the overall experience, companies | | | | influenced or managed by CRM software. Touch |
| that are looking to establish or improve their CEM | | | | points such as employee interactions, aspects of |
| capabilities should define their customer | | | | direct marketing, and third-party touch points may |
| experience more broadly; the experience should | | | | have a significant impact on the customer |
| be defined as an end-to-end process that begins | | | | experience but may not be supported by CRM |
| with customer attraction, flows through | | | | software. |
| interaction, and ends with cultivation - where the | | | | 3. CRM software is often implemented as a |
| process starts over. | | | | best-of-breed solution and lacks the level of |
| Myth #3: Each Channel Should Have A Unique | | | | enterprise-wide integration necessary to develop |
| Customer Experience | | | | and manage a true 360-degree view of the |
| Thanks to technology and multiple points of | | | | customer. CRM software solutions are great at |
| presence, business just keeps getting more | | | | managing customer information. The view of the |
| complex. Innovations in technology have brought | | | | customer can limited, however, if a complete set |
| new channels such as the call center, Internet, | | | | of customer interactions, behaviors, or |
| and now mobile channels in many industries. Many | | | | preferences aren't properly captured and |
| businesses, anxious to stay in the game, jump in | | | | analyzed. Interactions such as inbound and |
| with new channel offerings without an integrated | | | | outbound communications, campaigns, or |
| view of the customer. | | | | customer care interactions are often not tracked |
| Granted, each channel has unique characteristics | | | | and managed by CRM solutions. CRM solution |
| and can be used in different ways and for | | | | alone won't solve this problem; businesses must |
| different purposes by the customer. Treating | | | | take the steps to engrain CEM concepts |
| each channel experience as unique and | | | | throughout all touch points in their enterprise. |
| independent, however, is a recipe for disaster. | | | | 4. CRM solutions provide a limited set of customer |
| Each channel may indeed be different; the | | | | experience metrics. While CRM solutions often |
| customer experience shouldn't be. | | | | provide key functional metrics, they are often |
| Ever since the day that Ray Kroc began | | | | transaction in nature and won't provide a |
| expanding the McDonald's empire, he set the | | | | comprehensive set of metrics necessary to |
| standard for consistency across each and every | | | | analyze, measure, and manage the end-to-end |
| location. No matter where you are in the world, | | | | customer experience. |
| the McDonald's experience is the same. Ray | | | | |