Lots of things are critical to delivering a great customer experience (CX). For instance, do you really understand your customers or simply do a great job of segmenting them? Do you actively encourage employees to provide feedback and recommendations on CX issues? And do you consistently get back to them on actions taken as a result of their feedback?
The truth is, you need to excel at all these practices to deliver exceptional customer experience. But even if you do, it may still not be enough. Ultimately, you’ll only excel at CX if you’ve properly aligned your CX strategy with your overall company strategy.
Forrester recently surveyed 52 Australian and New Zealand businesses, and of those surveyed, 98% believe that their companies are committed to improving CX. But only one-third have a CX strategy that’s actually aligned with the overall company strategy. Forrester's clients can access the full report here. That gap, the one between the priorities of the company strategy and the priorities of the CX strategy, is the business equivalent of the Bermuda Triangle; not all ships that enter will find their way out.
Whether you call them consumers, businesses, patients, citizens, or something else entirely, winning, serving, and retaining those customers must be a primary goal. And how can you achieve that goal? Ensure your CX strategy is actually aligned with the organization’s strategy. If you are one of the almost 70% of companies that have not aligned their corporate and CX strategies, you are like that ship trying to navigate the Bermuda Triangle on a very dark night, without a compass or charts.
Convergences are cool when they happen, and for the past two months, I’ve been experiencing one around customer experience measurement. Today, I was on the phone with a massive government agency talking about the way it measures customer experience and why it’s not working. Next week, I’ll have another discussion with a major communications company about rebuilding its customer experience (CX) measurement system from brownfield and will also meet with a leader from a major software company on overhauling customer experience measurement globally. Two weeks ago, I met with the head of digital at a top-five bank about rethinking how to measure the digital customer experience.
In 2014, TeliaSonera International Carrier (TSIC) engaged Forrester Consulting to help assess its activities around customer experience and build a road map for its burgeoning customer experience program. TSIC is an international provider of telecommunication services with headquarters in Stockholm and offices in 14 other countries. It has grown from being the largest IP network in Europe to one of the top two global carriers powered by the Internet backbone, as ranked by Internet performance analysts DYN.
I had a chance to sit down with Simon Dodsworth (SD), VP of voice and mobile; Rickard Bäcklin (RB), VP of brand and marketing; and Linda Bennet-Jansson (LBJ), CX manager, to discuss their relatively young customer experience (CX) program.
What is the mandate for the CX program at TSIC?
RB: It’s an important part of a longer journey. Back in 2011, we initiated a bold transformation project within TSIC. To redefine customer demands in the wholesale space, we looked beyond the internal club of network people, focusing on the future end users and the demands they would put on us in the carrier industry.
Do you understand your company's vision for the customer experience (CX) it wants to deliver? How many of your colleagues do? If you're a CX professional, how many colleagues have you shared your company's vision with?
My guess is not many, and I confess, it's not really a guess — I have data that shows few CX pros regularly share their CX visions/strategies with all employees, and even fewer do so in a consistent way.
And that’s a shame, because great customer experiences are built on solid strategies executed by people sharing a common vision. In other words, a CX strategy must see light to be actionable. Only then can it direct the activities and decision-making of managers and employees. In my recent research, I found successful strategy communication requires a four-phase approach:
Inspire a sense of purpose. Spare the 50-page strategy manifestos and instead share a simple illustration, video, or set of promises that captures the essence of the CX vision and draws employees in. UK airline easyJet created a one-page customer charter that described the new easyJet flying promise to customers in plain language. Its CX team developed icons to represent each of the five promises and then enlisted its customer champions to act out life-size versions of the icons for photos and video, which it plans to share internally and externally.
Customer experience is fundamental to the success of every business. For most companies, in fact, customer experience is the single greatest predictor of whether customers will return — or defect to a competitor.
Customer experience goes to the heart of everything you do: how you conduct your business, how your people behave when they interact with customers and each other, and the value you provide. You literally can’t afford to ignore it, because your customers take it personally each and every time they touch your products, your services, and your support.
In our new book, Outside In, my coauthor, Kerry Bodine, and I explore the real meaning of customer experience; prove the business benefits of delivering a great experience; and describe the six disciplines of customer experience leaders like American Express, JetBlue, Office Depot, and Vanguard. Our goal is to help readers understand why and how customer experience leads to profits — which it does, but only if you treat it as a business discipline.
Why is customer experience so important?
“Customer experience” is literally how your customers perceive their interactions with your company.
Those interactions occur at each step along a customer journey. That journey begins when people realize that you offer a product or service they might want, then compare your offer to other options. If things go your way, they’ll buy from you. Then they’ll use what they bought. If they encounter a problem, they’ll call for support.
This is a guest post from Anjali Yakkundi, a Researcher at Forrester Research. It originally appeared on destinationCRM.
By now, everyone knows that engaging and dynamic customer experiences are a key competitive advantage, and “business as usual” will no longer suffice to support these engaging digital experiences. Organizations that don’t embrace this customer-focused thinking will risk missing out on important opportunities and will lose strategic advantages.
From a technology standpoint, the key to success will be integrated, best-of-breed customer experience management (CXM) solutions. This includes technologies such as Web content management (WCM), CRM, eCommerce, digital asset management (DAM), site search, and Web analytics.
We recently completed an evaluation of the DAM market. DAM is a key process-based solution that focuses on managing rich media content (e.g., videos, images, graphics, and audio). Despite the well-documented importance of rich media in cross-channel customer experiences (consider the amount of video and images on the Web or in marketing content now versus just five years ago), DAM solutions have long been overshadowed by other CXM technologies. These solutions have traditionally been relegated to niche, rich-media-heavy industries such as media, publishing, and entertainment. But as more and more organizations understand the importance of a cross-channel rich-media strategy to improve customer experiences, DAM for customer experience is experiencing a revival in interest across verticals.
As I recently celebrated my fifth anniversary as a Forrester analyst, I reflected on how my coverage area has changed. For the past five years I've covered the web content management (WCM) market. This has been a healthy market, and I still get plenty of interest from my clients on this topic.
But the context of that interest has changed markedly, particularly over the past year. When clients used to ask about WCM, they wanted to know about WCM and WCM only. But these days, they ask about WCM in the context of other technologies supporting customer experience, such as commerce, CRM, and analytics. Our clients have reached a logical conclusion: WCM isn't the end-all-be-all for digital experiences but instead is one piece of the customer experience management (CXM) puzzle.
And the market will continue to evolve in 2012. In particular:
Watch for an avalanche of acquisitions, both big and small. Though larger vendors have multiple pieces of the CXM puzzle, no one has yet put together a complete portfolio. Vendors are still missing some critical pieces, such as rich media management (IBM), commerce (Adobe), and testing and optimization (Oracle, SDL). Watch for the CXM vendors to compete to fill these gaps. High-reaching best-of-breed WCMs such as Sitecore may not remain independent for long.
Contextualization will become the byword. Forget complicated business rules and template schemes. Technology to contextually adapt customer experiences based on user segment, browsing behavior, locale, and device will be high priority. Vendors will make strides so that customers can increasingly take an "automate + optimize" approach: automating contextualization for most experiences and manually optimizing it for a few high-profile experiences, such as home pages.
At its 2011 Analyst Event in Boston, Nokia Siemens Networks (NSN) outlined more details of its recently announced strategy review. In our view, the new focus NSN is taking is right. NSN is focusing on growth segments of the infrastructure market and will generate large savings from operating expenses and production overheads. In addition to its focus on providing the most efficient mobile broadband network infrastructure, NSN also highlighted the importance of customer experience management (CEM) as an integral part of its strategy.
NSN also provided more guidance on which market segments it no longer considers core. These include wireline, microwave, Wimax, perfect voice, and business support systems. Some of these, microwave and Wimax, it already spun off. NSN estimates that the overall revenue impact of its non-core disposals will total 10% of its current revenue base. The impact on profit will be less than 10%, as these non-core disposals are low-margin operations.
NSN believes that telcos increasingly demand end-to-end solutions from their equipment vendor partners. No equipment vendors can credibly deliver such end-to-end solutions on their own. Hence, NSN is positioning itself as an ecosystems manager for end-to-end solutions. As part of its innovation drive, NSN increasingly focuses on devising concepts for solutions rather than simply focusing on product upgrades. For instance, Liquid Net is a concept for network infrastructure design that supports a more efficient usage of underutilized infrastructure capacity based on a range of NSN products. Similarly, NSN places great emphasis on its CEM solution, which helps telcos to transform their services offerings by enhancing network-related features that affect customer experience and satisfaction.