What is CX?
You might have an intuitive sense of what separates good CX, or customer experience, from bad. Imagine, say, you want a latte. When you visit the coffee shop, are staff members attentive? If you are a regular, do they greet you by your name? Was the store designed intuitively? Do they take your order promptly and hand you your cup with a smile? If you have a problem, is it promptly resolved, or is someone sent to help you? Do they proactively reach out to understand your overall experience?
All of those questions touch on elements of customer experience. The four components of CX are brand, product, price, and service.
Basically, CX refers to everything an organization does to deliver superior experiences, value, and growth for customers. And it’s crucial in an age when how a business delivers for its customers is just as important as—if not more important than—the products and services it provides. In a digital world, where customers review and share their experiences with a company in public forums, it has become vital for companies to connect with customers across their journeys at an emotional level. Not only is customer experience the right thing to do for customers but it also results in 3x returns to shareholders.
The COVID-19 pandemic was a test of how to connect with customers in times of crisis. And many did surprisingly well in providing good CX, for instance, by swiftly reorienting their efforts to meet customers’ primary needs with respect to safety, security, and everyday convenience. Take, for example, e-commerce companies and food delivery services that developed methods of contactless delivery to keep customers and drivers safe as the virus spread.
This article offers a brief overview of customer experience-related topics and answers questions such as:
What are customer journeys?
A customer journey describes the customer’s end-to-end experience, as opposed to their satisfaction at various individual transactions or touchpoints. These can include many things that occur before, during, or after the customer experiences a given product or service. Examples of customer journeys include bringing a new customer on board, resolving a technical issue, or upgrading a product.
Consider onboarding a new customer. At one company, this process took about three months and on average entailed nine phone calls, a technician visit, and interactions via both the web and mail. While there was a 90 percent chance, at any given touchpoint, of the interaction going well, average customer satisfaction fell nearly 40 percent over the course of the journey. More important than solving issues at the level of individual touchpoints was to reimagine the approach to service operations around the most crucial CX journeys.
Attending to full customer journeys instead of touchpoints can drive stronger business outcomes. For instance, a McKinsey survey found that customer satisfaction with health insurance is 73 percent more likely when the entire journey works well than when only touchpoints do. Looking to the hospitality industry, customers of hotels that get the entire customer journey right may be 61 percent more willing to recommend those hotels than customers of hotels that just focus on touchpoints.
If your company is looking to reinvigorate its customer experience, three efforts can help you move from touchpoints to journeys:
You might have an intuitive sense of what separates good CX, or customer experience, from bad. Imagine, say, you want a latte. When you visit the coffee shop, are staff members attentive? If you are a regular, do they greet you by your name? Was the store designed intuitively? Do they take your order promptly and hand you your cup with a smile? If you have a problem, is it promptly resolved, or is someone sent to help you? Do they proactively reach out to understand your overall experience?
All of those questions touch on elements of customer experience. The four components of CX are brand, product, price, and service.
Basically, CX refers to everything an organization does to deliver superior experiences, value, and growth for customers. And it’s crucial in an age when how a business delivers for its customers is just as important as—if not more important than—the products and services it provides. In a digital world, where customers review and share their experiences with a company in public forums, it has become vital for companies to connect with customers across their journeys at an emotional level. Not only is customer experience the right thing to do for customers but it also results in 3x returns to shareholders.
The COVID-19 pandemic was a test of how to connect with customers in times of crisis. And many did surprisingly well in providing good CX, for instance, by swiftly reorienting their efforts to meet customers’ primary needs with respect to safety, security, and everyday convenience. Take, for example, e-commerce companies and food delivery services that developed methods of contactless delivery to keep customers and drivers safe as the virus spread.
This article offers a brief overview of customer experience-related topics and answers questions such as:
- What are customer journeys?
- How to measure customer experience?
- What is the consumer decision journey?
- What is customer care?
- How to improve customer experience?
What are customer journeys?
A customer journey describes the customer’s end-to-end experience, as opposed to their satisfaction at various individual transactions or touchpoints. These can include many things that occur before, during, or after the customer experiences a given product or service. Examples of customer journeys include bringing a new customer on board, resolving a technical issue, or upgrading a product.
Consider onboarding a new customer. At one company, this process took about three months and on average entailed nine phone calls, a technician visit, and interactions via both the web and mail. While there was a 90 percent chance, at any given touchpoint, of the interaction going well, average customer satisfaction fell nearly 40 percent over the course of the journey. More important than solving issues at the level of individual touchpoints was to reimagine the approach to service operations around the most crucial CX journeys.
Attending to full customer journeys instead of touchpoints can drive stronger business outcomes. For instance, a McKinsey survey found that customer satisfaction with health insurance is 73 percent more likely when the entire journey works well than when only touchpoints do. Looking to the hospitality industry, customers of hotels that get the entire customer journey right may be 61 percent more willing to recommend those hotels than customers of hotels that just focus on touchpoints.
If your company is looking to reinvigorate its customer experience, three efforts can help you move from touchpoints to journeys:
- Observe. Put yourself in your customers’ shoes: What do they see? This can help organize and mobilize employees around customer needs. In addition to identifying and understanding the customer’s journey, you’ll need to quantify what matters to customers and define a clear aspiration and common purpose.
- Shape. When you design customer experiences, interactions must be reshaped into different sequences. Even if your effort starts small, it can swiftly become much larger and entail the digitization of processes, the reorientation of company culture, and nimble refinements in the field.
- Perform. Making the transition to prioritize journeys can be a journey in itself that takes years and requires deep engagement from everyone in the company, from corporate leaders right down to the front line.