Tagged: Customer Experiences

Why Customer Experience Programs Fail?


Heralded as the last battleground for competition, customer experience management has become a core strategic imperative for many organizations. Building unique emotional ties with customers that are stronger and difficult for competitors to imitate is considered the cornerstone for organizations to achieve an unbeatable competitive edge in today’s market.

Known as “branded customer experience” the association of experiences specific to a brand has created mega organisations such as Apple, Zappos and Amazon. To deliver a great branded experience for customers, an organization must embrace customer experience management as their highest priority if they are to prosper in the future.

But where do you start, what actions do you take, what is the process that you should follow to achieve success? These are some of the key questions organizations seek to answer when they have accepted the value branded customer experience can deliver for them. Our research in this field identified that few organizations understand the complexity and areas they need to change to achieve the privileged position in the marketplace as a customer experience leader. This finding is supported by research conducted by Accenture in 2015. Accenture found that nearly 80% of organizations never achieve any growth in profits or customer numbers from their customer experience programs[1]. At best they achieve mediocre results.

There are a multitude of reasons for the poor performance achieved from customer experience programs. The eight top reasons we identified are as follows:

  1. The organization is not ready. Few check the readiness of their organizations prior to making the investment in a customer experience program. This initial ‘look into the mirror’ to obtain an honest view of whether the organization is in fact ready to embark on the journey of becoming a leading customer experience company is an essential first step to determine whether or not the organization should even attempt to take the next step in the process.
  1. There is no specific vision or financial metrics associated with the customer experience program. Organizations that are not ready to embark on a journey to achieve strategic customer experience advantages tend to implement programs that lack specific visions or have metrics that properly measure the success of the program. As a result the program tends to focus on no metrics or ones that give the illusion of success.
  1. CX initiatives address symptoms and not root causes. Without proper analysis organizations invest in initiatives that address the symptoms associated with poor customer experiences. Without addressing the underlying issues these problems reoccur and customers are no better off. Their investment in the initiates is ephemeral and leads to no sustainable benefits for the organization.
  1. Organizations don’t implement processes or structures to fix customer issues but instead focus on a single measure to determine their impact on customers. Organizations that build processes that enable customer feedback to be used as a catalyst for internal improvements achieve greater results than those solely focused on the score achieved in a customer survey.
  1. Organisations only focus on the customer side of the equation. Customer experience programs often underachieve because the majority of them only focus on the customer outcomes but fail to address internal leadership, culture, and people of the organization. Transforming the organization is pivotal in achieving the rewards associated with strategic customer experience.
  1. Inadequate governance and positioning of the CX program. Any implementation of any initiative to improve the customer experience needs to have the proper governance model in place to ensure there is ongoing monitoring, reporting and remedial actions to ensure the initiative is achieving its desired objectives. Not only does the governance model need to be functional but its positioning within the organisation is as critical. Incorrect positing can compromise the effectiveness of the people empowered to ensure the organization is achieving its customer experience objectives. Incorrect positioning within the organization can undermine the importance of the program ensuring any new behaviours never get embedded as part of the organizational culture.
  1. Outsource partners are not included as an integral component for the program’s success. Almost all organization outsource some component of their business. Any component impacting customers requires the organization to properly integrate the outsource provider into the customer experience program. Agreements with providers need to reflect the objectives of the customer experience program and a governance model needs to be in place to monitor the impact on customers from the outsource provider.
  1. The ability to effectively innovate and continually improve in customer experience is inadequate. Customer experience excellence in the marketplace is a constantly shifting target. What works today for customers is unlikely to remain relevant forever. Organizations without the ability to evolve and improve through innovation don’t achieve longevity in commercial benefits from their customer experience programs.

 

Achieving the rewards of a properly designed and implemented branded customer experience program requires the organization to be armed with knowledge about the breadth and depth of change required to transform the organization as a CX leader. For any progressive organization branded customer experience is the blueprint for growth in the current competitive landscape.

 

Experience My Brand is a book written to exclusively help companies avoid commercial failure from customer experience programs. With clear data to complement the text, Experience My Brand puts theory into practice in a way that is practical and easily understood. Readers are provided the tools to effectively implement transformational change and create a unique and sustainable experience for their customers.

To learn more visit the website: www.experiencemybrand.com

[1] Accenture Strategy: 2015 B2B Customer Experience: https://www.accenture.com/t20161216T021856__w__/us-en/_acnmedia/PDF-27/Accenture-Strategy-B2B-Customer-Experience-2015-Research.pdf

What Do Gulf Customers Expect?


What Do Gulf Customers Expect?

This paper is a summary of some of the findings we have seen over the years of servicing customers in the gulf region. It is intended to provide a snapshot for busy executives and to encourage further dialogue. We do not intend to present a single view of customer expectations in the region but aim to highlight that customer expectations in the region are often not aligned with how companies deliver their services in the region. We believe significant opportunities exist for companies to re-align their services to expectations to achieve significant and sustainable market share over their competition.

What Profile of Customer Are You Catering For?

Each country in the region has its own unique demographics and social and economic profiles. Countries like Saudi Arabia have a large local Arabic population whereas countries like the U.A.E have a large expatriate community from a diverse range of countries. The first step in understanding your customer expectations is to understand the profile of customers you service. There are many approaches to profiling of customers but the ones we believe lead to the greatest insights involve direct interviews with a statistically sound section of various segments of your customers.

Once you undertake this research you should identify common themes for each segment that clearly identify the expectations of your customers.

What Are Some of the Common Themes Identified With Gulf Customers?

The research we have undertaken with Gulf customers is based on our experiences and external market review of what Gulf customers expect. The themes we have identified that are common across the region are as follows:

  • Customers in the region want honest and transparent business practices.
  • Customers want companies and government to deliver their basic services exceptionally well
  • Customers want to feel valued for their business
  • Customers want personalised service
  • Customers do not want to be transferred to multiple different departments to get their issues resolved
  • Customers want their problems fixed within 24 hours without having to do their own follow-up
  • Customers expect companies to keep their promises
  • Customers want a choice in how they interact with companies. They don’t want to go to a retail outlet and take a ticket for basic services
  • The majority of customers are willing to wait around 1 minute to be answered if the service agent at the contact centre can resolve their issue the first time
  • Value-added services are not considered appealing to customers if basic services are not delivered well and with honesty
  • Complicated products and offerings are frowned upon by customers
  • Customers want no hidden charges and simple costs that represent good value

Where is the Misalignment in Business & Government in the GCC?

There are several areas we have identified in business and government in the GCC where there is misalignment between customer expectations and the servicing of their customers. The key areas of misalignment are as follows:

  • Contact centre Key Performance Indicators (KPIs) are measuring the wrong metrics in the contact centre leading to the wrong behaviours with their staff. For example, many centres in the region focus on how quick they can answer a call. Once the call is answered there is little focus on the actual outcome of the call itself. This is completely misaligned with customer expectations
  • Little or no agent empowerment with front line staff dealing direct with customer issues. This leads to customer issues being escalated to multiple departments before an issue is resolved. First time resolution in the region is low compared to the industry best practices are around the world
  • Poor technology and design of customer service systems leads to lack of transparency and insufficient information for the front-line staff member to effectively resolve issues efficiently and effectively
  • There is a significant reliance on retail outlets for customers to get serviced. It is not uncommon for a customer to wait over 20 minutes in the GCC to get a basic transaction actioned from retail outlets
  • There is an insufficient range of effective alternate channels to get service. Self-service solutions in the GCC are lagging the rest of the world. Effective social media management of customer queries is also considered inadequate compared to other more mature markets
  • Front-line staff are often poorly trained to deliver world class service and incorrectly motivated to achieve better customer experiences on an ongoing basis

The Roadmap to Alignment

An opportunity exists for companies and government in the GCC to align their services and how they treat their customers with the expectations of their customers. This opportunity will enable companies and government to position themselves as world class making them aligned to international best practices. This will provide both the global recognition but also position these GCC organisations as globally competitive.

The roadmap to alignment requires companies and governments in the GCC to undertake the following:

  • Undertake a thorough assessment of the current ways customers are currently being serviced
  • Benchmark this assessment to world best practices and to actual customer expectations
  • Identify your goals for where you want to be in the next 2-3 years as an customer service organisation
  • Identify the gaps in the business that need to be realigned to achieve your goals
  • Secure CEO and board sponsorship for your goals and the project to re-align the business
  • Ensure you have the right resources, external partners and funds to achieve your goals
  • Have realistic expectations of what can be achieved in the time frame given your current position and internal culture.

What is the pay-back?

One of the key obstacles faced with re-alignment to customer expectations is the pay-back to the organisation. This is the question that will be asked in the board room and will ultimately determine whether the company decides to make changes or retain the status quo.

The pay-back is different for government and for private enterprise. Government can expect to reduce the cost of service delivery as well as raise how satisfied their citizens are with their government and the services they provide. For private organisations the research strongly indicates the pay-back is well worth the investment. A study undertaken by Harvard Business School in 2005 surveying over 2000 large and medium sized enterprises showed that those who had both fully engaged employees and full engaged relationships with their customers were on average 3.4 more successful in financial terms than those who failed in these capabilities.

Where to Next?

Kinetic BPO is committed to helping GCC companies and government provide world class customer services through our solutions. We would be happy to discuss with you how we may be able to assist.