Gaining sustainable advantage through differentiated customer experience

Posted by Sandip Sen | 27 Feb 2013
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In today’s fast-paced business world, where product lifecycle is shrinking rapidly,organizations are grappling to create a sustainable differentiated advantage.With multiple factors impacting the new-age customer, end-user experience is the only true product differentiator for customer retention, loyalty, and improved customer lifetime value (CLTV). Most brands today are sharply cognizant of the fact that providing a differentiated customer experience is crucial to their businesses.

With competition increasing phenomenallyin all industry segments, businesses mustensure superior customer experience at every point where the customer interacts with their brand- before, during and after the purchase as well as during consumption.For instance, an airline offers an excellent and extremely attractive rewards program to demonstrate unique value to its customers. However, if flyers do not experience good service on the airline, no matter how well-thought-out the rewards program is, it would fail to convince themto usethebrand again.In contrast, to continue with the same example, if the airline offers the best in-flight experience and a great personalized service to its flyers, and also tracks insight to avoid and compensate for a disengaged incident, that would prove to be a game-changing strategy for the airline brand.

So, the true sustainable gain lies in making your customers fall in love with your brand. The way to do this right is to create a mind-set within your organization that focuses on customer experience. You must create a feeling of trust among your customers and assure them that irrespective of the situation and engagement, your brand will keepitsvalue promise.Customer experience is not a mere strategy that needs to be executed; it is an attitude that you need to instil in your corporate culture.Some key tips can help you optimize your customer service if you are strategizing to win back consumer trust and differentiate yourself from competitors.

Experience evangelistsare delivering immense value using ground-breaking techniques. They piece together the structured as well as unstructured data pertaining to your customers’ interactions with your brand – physical, virtual, or social – continuallygathered from across all customer touch points. They then derive insights and ideas that can transform your business. This helps you moveproactively and ensure thatevery customer ‘moment of truth’ is extremely positive, rather than reacting after the experience has gone wrong.  For example, by studying in-store consumer movement and shopping trend analytics, retailers improve their store layout for a more engaging customer experience while encouraging more impulse purchases.

Along with a few cost implications, this approach can identify additional revenue streams through superior experience management alone.

How are you using customer insight to drive greater value?Are you leveraging customer experience management to its fullest potential? If your organization is ensuring a differentiated customer experience, we’d like to hear about it.

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