Customer Experience Management

This category has blogs on CEM

The Customer Loyalty Lifecycle!

We’ve all heard of the business life cycle, however today I wanted to introduce you to a different type of life cycle, i.e. the customer loyalty life cycle.  When managing a business it is imperative to know what sort of a life cycle the business is likely to go through, and hence we can make appropriate strategies.  Similarly, when wanting to manage loyalty, it is important to understand what type of a life cycle a loyal customer is likely to go through, so that we can make appropriate plans.

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WOM still the most powerful tool for a marketer

Word of mouth, or recommendation, is the most powerful tool marketers have in their arsenal for attracting and retaining customers.  Despite this being the most powerful of the tools, it is one of the most overlooked, and hence I thought I would devote this blog to the importance of WOM.

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Customer Services Across the Atlantic: What we can learn from each other

I spent some time traveling, working and speaking in the US recently.  This particular trip, I paid much attention to customer services and to see how different organizations do things.  Overall, I can conclude that there is much that we can learn from each other about customer services.  There are some things that the Europeans seem to be good at, and others that the Americans seem to be doing well.

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Customer Services Across the Atlantic

Hi folks.  I’m in the US for a two week business trip, and presenting in conferences.  Had some interesting experiences already. 
For instance, I found the Dept for Homeland Security personnel quiet friendly.  In contrast, American Airlines seems to be really unfriendly.  Perhaps AA can learn much from Homeland Security.

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Learning from Customer Experience Awards Winners

Yesterday I was attending the UK Customer Expereince Awards.  While judging the awards I got to learn about a number of faciniting things that various companies were doing and thought I would share some of those with you.

One of the finalists for the Toursim category was Carnival UK.  The really interesteing thing this company is doing is looking after their customers in times of crisis.  So if a person falls really ill, or has a family member who passes away, etc. the company steps in and provids all the possible assistance.  This stuck me as a best practice which needs to be adopted in some form or the other by others.  Normally tour companies would just leave the customer and ask them to get assistance from their insurance companies, etc.  However Carnival has a dedicated team of specialists who provide assistance in times of crises for their customers.  As the old saying goes, a friend in need… Although the company has not followed up with a feedback form, due to the nature of the circumstances, they do receive many letters of thanks from customers.  I personally think this is a great practice in developing emotinal attachment.

Eurostar which was another finalist has done really well despite the techincal trouble they had last year.  They not only have recoginzed the need to be more customer focused, they are working towards changing the corporate culture and putting the customer first.

Butlins the winner in the category has developed some really great customer training initiatives.  The training they provide are not only very relevant but also seem to be interesting, and comperehensive.  Their training programs ensure that their employees are focused on the customer, and on solving problems queries so that they can enjoy a great holiday.

Overall there were five different categories.  A lot of interesting companies submitted their applications, and a number of great practices were brought forth.  Looking at the winners we can see there is much development within the Customer Experience domain, however there is still much work to be done.

I am in the process of developing a while paper with Prof. Morris Pentel.  More details will be posted once the paper is done.

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Customer satisfaction doesn’t cut it anymore

There is much talk about satisfying customers.  In fact nearly any marketing text you pick up, and the main definition of marketing is ‘satisfying’ customers.  Researchers, managers, experts in the past have said that satisfaction can lead to loyalty, profitability, customer retention, etc.  However, this is now changing.  I believe we need to do a major rethink on this topic.  Customers are no longer satisfied with being satisfied!!!

What is satisfaction?  Well satisfaction is essentially meeting the customers expectations.  If you promise to deliver a document by 1 pm, and you do it at 1pm, the customer will be satisfied.  If you’re late, then that results in the dissatisfaction.  However, if you are considerably early, then that results in a higher degree, which can also be called delight.

The problem with satisfaction is that competition has increased.  There are many companies out there offering similar products and services.  With the globalization of the economies, the number of new companies entering markets from countries like China or UAE are increasing.  Similarly western companies are expanding into these countries.  Hence, overall we have an increased level of competition.  Each company is trying to excel and beat competition.  Furthermore, the customers are much more aware of their surroundings today, than 10 years ago.  The internet, and more specifically Social Media, has really revolutionized the way how we communicate and how information flows.  Customers can find out about a sale, or promotion, or the latest features of a product even before any of these are launched.

Research now says that there is no guarantee that satisfied customers will become loyal (any level of loyalty).  So what does that mean for companies?  Companies now need to go beyond satisfying their customers if they want to get them to come back.  Hence strategic management needs to rethink their goals and objectives.  I think companies should now aim for delight, instead of satisfaction.  Companies that can make their corporate culture around this idea will be winners.  Delighted customers are ones that are most likely to not only come back to you, but also achieve higher levels of loyalty.  Moreover, these guys will be telling not tens, but hundreds or even thousands of their pals (through social media) about what a fantastic company you have.

In the short-term, it may mean an increase in costs.  However these are far out weighed by the benefits they bring in.  A number of companies that I’ve worked with that have adopted this philosophy have seen their revenues and profits increase over time.  Moreover, they have also seen their marketing budgets decrease, since word of mouth brings in more customers than any other form for them.  Interestingly this is true for both B2B as well as B2C companies.  Moreover, it works for all sizes of firms, from SMEs to Multinationals.

What do you think about this?  Do you see an problems or issues in implementing this strategy?  What other benefits could companies get by doing this?  I would love to hear your views.

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