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Linking Customer Experience to Business Results for Sustainable Growth

July 22, 2024

One of the most pressing challenges that organizations face today is achieving the delicate balance between customer experience and business value. As companies strive to remain competitive and embrace new technologies, they not only risk significant amounts of capital but also face potential pitfalls with their customers. For instance, many customers still prefer the human touch over interacting with a chatbot. This raises a crucial question for business leaders: how can they guide teams toward high-technology innovation without alienating their long-term consumer bases? The implementation of systems that can provide answers to this question is not just important but crucial to a brand’s lasting growth and success.

Technology Trends Are Driving Customers’ Expectations

The rapid evolution of technologies over the past decade has dramatically reshaped the customer-experience landscape. Innovations such as voice recording, interactive voice response (IVR) systems, chatbots, and artificial-intelligence (AI) engines have transformed the ways in which businesses interact with their customers. These technologies empower companies to deliver more efficient, personalized services to meet the ever-increasing expectations of modern consumers.

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The delicate balance between high-tech solutions and high-touch human interactions is foundational to a high-quality customer experience. While technological advancements offer efficiency and scalability, the human element ensures empathy and personalized service. Striking the right balance between these approaches is the key to success in the modern business world.

Today’s customers no longer rely solely on in-store experiences. Consumers demand that brands recognize their preferences and anticipate their needs through personalized, data-driven interactions. Unlike ten or twenty years ago, customers don’t expect to spend 40 minutes in a store browsing home-office supplies or go from store to store to see who has their desired item in stock.

Customers insist on seamless experiences across all touchpoints, whether online or offline. As customers, they expect brands to recognize them and provide consistent, personalized interactions at every stage of their journey. They also desire a human touch and are slow to accept robotic interactions over those with humans. Thus, businesses must integrate their operations and technology platforms in deliberate and measured ways, using all available tools—from analytics to AI. But adopting technologies simply to be at the cutting edge is not the solution. Customers appreciate user-friendly Web sites and apps. However, automation can damage the user experience if technologies are slow, difficult to use, malfunctioning, or lack sufficient information.

Customer Experience and Economic Value

Improving the customer experience links directly to economic value. Satisfied customers are more likely to “make repeat purchases, recommend the brand to others, and contribute to positive word-of-mouth.” This, in turn, enhances the brand’s reputation and drives business growth. The value chain begins with the customer experience, which leads to added customer value. Over time, this translates into added economic value, as reflected in increased share prices and overall brand value. A positive customer experience sets off this chain reaction, creating long-term business success and sustainability.

For a company to succeed, it is imperative that its operations align with its customer-experience strategy, and this starts from the bottom up. Every department of a business, from Marketing to Customer Service, should work toward a singular and common goal: enhancing customer satisfaction.

The success of Nike, the US-based, global athletic footwear and apparel brand, is legendary. The company operates under the mission statement “Inspiring the People.” The company inspires people through a multifaceted approach that elevates the customer experience beyond purchasing comfortable shoes. It’s a strategy of personalization to meet the individual customer’s needs that starts with marketing and reaches customers through retail stores and the company’s online presence. Nike has also created immersive experiences such Nike Run Clubs, connecting customers with a global community of athletes and providing personalized training, challenges, and support through an interactive app. This customer-experience strategy has resulted in solid revenue growth over the past few decades. Nike’s iconic slogan “Just Do It” is cemented in the minds of a global audience. By balancing customized touchpoints with high-tech apps, Nike continues to dominate in its industry.

Real-Time Analytics: A Key to Success

Building analytics systems is a wise investment for companies. AI and advanced analytics, including accurate, detailed customer data, are pivotal in delivering enhanced, personalized customer interactions. Another essential factor is the hot-stove concept. The best customer feedback comes right at the point of sale or at each transaction, not two days later. People or systems that collect live customer feedback provide the most valuable data for analysis.

It’s vital that companies invest in robust data-collection and analytics tools so they can understand customers’ behaviors and preferences, which enables them to anticipate customers’ needs and exceed their expectations. McDonald’s, which has leveraged analytics and other tools to set its brand apart in the fast-food market, is an example of customer analytics done right. Capitalizing on its analysis of customer data and industry trends, McDonald’s introduced healthier menu options, underscoring the customer-centered approach that has helped the organization achieve brand dominance. Its app-based loyalty program offers exclusive discounts, personalized offers, and mobile ordering. In-store, touch-screen kiosks enable consumers to customize their burgers, creating an interactive experience that ensures they get what they want. Balancing the introduction of technologies, the company prioritizes social-responsibility programs within their communities, reinforcing the human connection with local customers.

Some CX Insights

How can companies successfully integrate new technologies into customer experiences? This process requires a systematic approach that maintains the human element in customer interactions. Companies can achieve the balance between customer experience and business value by using technology to augment rather than replace human touchpoints. It is imperative that shifts to new technologies be gradual and well planned because abrupt transitions can degrade the customer experience and lead to dissatisfaction and the loss of loyalty. Training staff and communicating these changes to customers ahead of time can help smooth the process and mitigate any loss of customer satisfaction.

Key performance indicators (KPIs) such as the speed of agent engagement, repeat purchase rates, and new customer–acquisition rates are essential in measuring customer-experience outcomes. These metrics provide tangible data that can deliver actionable insights to executives and their teams. Effective customer-experience measurement involves both quantitative and qualitative methods. Surveys, feedback forms, and direct customer interactions provide beneficial information about customer satisfaction and identify areas for improvement.

Companies can look at real-world examples and case studies to understand the value of customer-experience improvements. Highlighting the success stories of dissatisfied customers who have become loyal advocates can demonstrate the effectiveness of customer-experience initiatives. Many sector leaders such as Disney, Google, and Amazon focus on gathering immediate, live feedback and managing their customer experience with real-time data. These organizations continuously refine their processes based on customer input, turning negative experiences into opportunities for improvement.

Tomorrow’s Customer Experience

What does the future of customer experience look like? It’s simple. The customer experience of the future will focus on simplification. Brands that can distill their identity and value proposition into a single, iconic line in the mind of their customers will dominate their industries for decades to come. McDonald’s has mastered this approach for fast-food hamburgers, Red Bull for energy drinks, and Nike for athletics footwear and apparel.

While the process differs somewhat for each brand and industry, the common baseline is a roadmap that follows the cycle from excellent customer experience to increased economic value. The savvy guidance of marketing executives, technology leaders, and Customer-Experience team members determines how well a company can execute tactically. By continually evaluating and adjusting their customer-experience strategies to ensure that technology enhances rather than detracts from the human element of the customer experience, businesses can create value at every customer touchpoint, exceed customers’ expectations, and achieve sustainable growth. The successful execution of these significant strategies will determine the company’s long-term success or failure. 

Enterprise Business Operations Manager

Gurgaon, Haryana, India

Dheeraj BhargavaDheeraj is a recognized business-operations leader who has over 30 years of experience, with an emphasis in the telecom and IT sectors. Dheeraj holds a PhD in business-operations management, an MBA in business management, and a bachelor’s degree in electronics and communications engineering.  Read More

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