Customer Experience (CX)

How is it different than CS

TAPISH PANWAR

Where is Customer Experience (CX)?

Product Place

Price

Promotion

CX

- Buying Channel Channel availability, Ease of engagement & buying

-Service Channel Channel availability, Ease of engagement, Customer sensitivity, Delight mindset

- Communication Credibility - The communication doesn’t make unrealistic claims - The communication is humble and respectful - The communication should not be offensive or on-the-face trying to grab attention -

- Product usage attributes Quality, Performance, Reliability, Engagement

- Product Claim vs Reality Superiority, Outcome Differentiation, Function

- Fair Price Perception - The product/service deserves the price charged- A competitive product with strong PoDs and PoSs isnt cheaper- Service/Repair cost doesn’t make the product ownership a ‘trap’

Difference between CX and CS

Customer Service (CS)

Post-purchase process

Separate team to handle

Often a differentiator

Lends heavily to brand credence

Often the most painful process in buying cycle

Customer Experience (CX)

Experience at all touch points

Mostly a ‘slogan’ followed by the regular teams

Not worked upon and looked at as differentiator

Touches all aspects of brand and helps in journey through brand pyramid

Aims at making all touch points, including customer service a trouble-less process

CS CX

CX over CS

What is (not) happening with CX?No clear understanding of role of customer experience in customer buying and post-purchase cycle

No authority or dedicated teams for CX in organizations

Lack of clear internal communication around the overall CX culture a organization needs to imbibe

No communication to customers about how the organization is striving to improve CX at all touch points

Weak efforts to align channel members on the overall CX program defined and followed by the company

Instead, me-too propositions are thrown in air to pretend to be highly involved in CX improvement

Unstructured and in-part implementation of the CX programmes. CX is always in totality

Why distinct and top-class CX is more important than ever in these times?

Quantum and quality of experience by customers

• Channel ( Customers are experience great CX through variety of channels)• Online marketplace, Modern trade (Easy returns, CoD, Quick refunds etc)

• Across sectors (CX is sector agnostic , all kind of experiences build expectations)• Travel, Retail, Education, Healthcare (International brands are up-ping the game)

• Experience with brands in international markets by Indian travellers influence expectations from the local or other MNC brands

Need for differentiation

• Brands’ strength lies in differentiation• CX is the new ladder to differentiation and stronger brands• Ever increasing competition from multiple channels & substitutes

Customer profiles

• More knowledgeable, well travelled and highly connected/networked• Pampered and always looking for more value and better experience• Want to reduce decision making time, Brands and CX can help in doing that

Arrest switching

Build Loyalty

Invoke advocacy

Create brand PoDs

Reduce decision-making

Encourage association

Customer level (Perceptual) benefits of a

distinct CX

How to build a distinct CX?Creating an Organization-wide definition of Customer Experience(CX) and its extent

Weave a culture around CX, preferably in line with the existing vision and mission statements

Training and awareness for employees and channel members on CX

Targets for improvement of CX (Qualitative and Quantitative) based on customer delight factors

Creating a team specifically responsible for monitoring, measuring and improving CX at all touch points

Cross functional team to implement the first time CX plan at all the touch points

Structured but extensive communication to the customers about the culture around CX and customer-first concept

Commercial Benefits

Customer Loyalty

• Repeat Purchase• Assured revenue flow in future

• Brand Premium• Margin improvement (Bottom-line improvement)

• Channel strength (Placement, exclusivity, margins etc)• Higher seller power with channel members

Brand Advocacy

• New customer acquisition• Revenue increase• Market share expansion• Economies of scale reduces cost per unit of product/service

Bene

fits

Bene

fits

Enabler

Enabler

CX Benefits

Top-Line

Bottom-Line

Market Share

Cash-flow

Thanks