The Herman Trend Alert
January 4, 2017
The Customer Experience Revisited
As we have talked about on numerous occasions, positive Experiences are the key to organizational success. Now, from McKinsey & Co. comes a CEO Guide to help executives know how they may gain their competitive advantages by creating exceptional customer experiences. The smartest companies already know and act on the fact that they are in the customer experience business. Equipped with advanced analytics, business leaders now have the insights they need to build loyalty, "make employees happier, achieve revenue gains of 5 to 10 percent, and reduce costs by 15 to 25 percent within two or three years". To that end, the agency has revealed a few factors that contribute to the success of a customer experience initiative. This Herman Trend Alert is an overview of that extensive report.
Understand the interaction through your customer's eyes
Technology has given customers new power in dictating the rules for purchasing goods and services. Three-quarters of customers expect "instant" service---within five minutes or less of making contact online. Customers today know more now than they used to, have evolved, and have higher expectations. We can thank companies like Google and Amazon for that.
Identify the customer's entire journey (process)
McKinsey says we must pay attention to the "complete, end-to-end customer experience" from the customers' perspective. Too many companies focus on individual interactions, including billing, onboarding, service calls, and similar points in the customer lifecycle. By contrast, a customer journey spans the entire progression of touchpoints.
The advantage of focusing on the journey
Concentrating on the overall experience is much more effective than focusing on individual touchpoint interactions. For example, guests of hotels that focus on the journey seem to be 61 percent more willing to recommend those properties than customers of hotels that merely focus on touchpoints.
What really matters to customers colors everything
In one airport security case study, the determining factor in customer satisfaction was the behavior of security personnel, not the time spent in line. When you take the time to find out what's really important to customers and invest in giving it to them, you will be rewarded by bottom-line profitability.
The most progressive brands apply behavioral psychology to interactions
Understanding the role that customer perceptions play is vital to generating significant additional value. Using behavioral psychology can be a tremendous advantage to drive customer perceptions and satisfaction levels. Using behavioral psychology professionals can "merge different stages of interactions to diminish [customers'] perceived duration and engender a feeling of progress". These simple manipulations can be used to give customers a feeling of control and choice.
Expect better designed customer experiences
As we are beginning to see now, large established brands will use this information to tweak and refine their customer experiences to make a huge difference for consumers and for their bottom lines. What's coming is organizations' understanding of the value of focusing on the experiences of all of the stakeholders, not just external customers.
Find the entire CEO Guide from McKinsey at http://www.mckinsey.com/business-functions/operations/our-insights/the-ceo-guide-to-customer-experience?cid=other-eml-ttn-mkq-mck-oth-1612.
© Copyright 1998-
by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or https://hermangroup.com. To sign up, visit https://HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."
HOW DOES SHE DO IT?
Our author Joyce gets quoted in TIME Magazine and other national media on a regular basis. You can, too! Sign up for ExpertClick.com. You will be found by the news media and in Google search: 1. Through your personal search-engine-optimized press room by 39 topics you choose; 2. By news releases pushed out 10 ways including Google News; 3. Be found in the 2020 printed Yearbook of Experts, Authorities & Spokespersons. Save 15% when you register by October 31st @ http://www.ExpertClick.com/Discount.
APF'S FUTURES FESTIVAL IN 3 DAYS: ONLINE OCTOBER 24TH: FULL SPECTRUM FUTURES
The Association of Professional Futurists proudly presents its annual online learning experiences on Full Spectrum Futures. Network with leading futurists from all over the world. And best of all, it's free to attend, though contributions are encouraged to help defray costs. For more information, visit here.
OUR VERSATILE TRANSLATOR ROCKS!
Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at email@example.com or contact her on SKYPE at marianacampora.
To read this Herman Trend Alert on the web: https://hermangroup.com/alert/archive_10-21-2020.html.
Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.
New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Click here to sign up for the Herman Trend Alert.
Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service.
Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts