Strategy: The First Step Towards Creating A Great Customer Experience

Great customer experiences are the result of countless deliberate decisions made by every single person in your organization on a daily basis. To align those decisions, employees and partners need a shared vision: a customer experience strategy.

When most people talk about strategy, they’ve often got a road map or some sort of plan in mind. But your customer experience strategy is actually a description of the experience that you want to deliver. Without that beacon, employees are forced to set out on a random walk, and their decisions and actions will inevitably be at odds with each other, despite all best intentions.

In Forrester’s soon-to-publish book, Outside In, Harley Manning and I illustrate the importance of a customer experience strategy through a case study about the Holiday Inn. In the majority of its 750 properties with on-site restaurants, the iconic hotel chain was losing dinner customers to casual restaurants like Outback Steakhouse and Chili’s. Even worse, it was losing breakfast customers to nearby gas stations — and you better believe that Holiday Inn got worried when gas stations started to provide better breakfast options than it did.

So what did Holiday Inn do?

Well, I’ll tell you what it didn’t do. It didn’t start randomly making one-off changes to the menu or the pricing. Instead, Holiday Inn stepped back to define a customer experience strategy.

It rooted that strategy in four brand attributes: inclusive, purposeful, social, and familiar. It clearly defined that the experience was for “everyday heroes” — midscale business and leisure travelers who are self-sufficient, unpretentious, and sociable. And, as they were working on this, it realized that eating and drinking were just part of a bigger picture. Hotel guests also wanted to have fun, relax, and connect — and they wanted to seamlessly transition among all of these activities.

Holiday Inn summed all of this up in a customer experience strategy that it called the Social Hub, and it described the experience that it wanted to deliver: “We give guests flexible options so they can be themselves. That way, they don’t have to leave the hotel to get what they want. They can find it at the Holiday Inn.”

Once it had a customer experience strategy, Holiday Inn was able to translate it into specific touchpoints that aligned with each of the main guest activities and with the brand. For example, to make the bar area even more social, it added perpendicular peninsulas to act as magnets for people to gather around. And it installed Apple computers in the hotel business center for aesthetic reasons. But to make the computers feel more familiar, it installed Windows on those machines because it knew its guests weren’t typically Mac users.

Consider for a moment all of the people involved in pulling this experience together: architects, interior designers, IT technicians, chefs, servers, and receptionists, just to name a few. In order to create the right customer experience — one that worked for the hotel and its customers — all of the initial contributors and ongoing service providers needed a common vision to align their work. And that’s what the Social Hub strategy provided.

Strategy is just one of six disciplines that companies must master if they want to achieve the full potential of customer experience. The others are customer understanding, design, measurement, governance, and culture. Of course, most of these concepts aren’t new in the business world — but they do take on a slightly different twist when it comes to customer experience. If you’d like to know more about the six disciplines and how they’ll help you create great experiences for your customers, please visit outsidein.forrester.com.

Comments

When I was the Chief Customer

When I was the Chief Customer Officer at Hilton Grand Vacations, I defined the desired customer experience and then commissioned a video that showed the experience in detail. It had a strong emotional component demonstrating the impact of a great experience on the customer, team member and leader. All current and new team members saw the video, so they could understand first-hand what we were trying to achieve. I would strongly suggest this tactic to take the customer experience to the next level.

Great article Kerry and

Great article Kerry and looking forward to the book!

For a lot of smaller organisations, customer experience strategy, design and implementation is a huge elephant to eat. It’s often easier to start with value proposition development in one or two markets or business areas first, and then work towards a total customer experience strategy.

Value propositions are the crucial ‘what’ of customer experience strategy and management. The customer value proposition is where you decide what you are going to deliver to your customers in terms of tangibles – products, services, offerings – AND, more importantly, the intangibles – what experiences do you want your customers to have from your offerings, how will you behave with them and how you would like them to respond. In my experience this can be almost like piloting your customer experience strategy first before committing to a huge programme.

Cindy Barnes

Author ‘Creating & Delivering Your Value Proposition: managing customer experience for profit”