Over the last several years the term “Customer Experience” or “CX” has gained significant traction. As with many business trends the B2C community was the first to really adopt this term. Companies like Uber and Amazon even have entire departments dedicated to “Customer Obsession.” The term has slowly but surely trickled into the B2B environment. The first question we must ask ourselves is, is this really new? Or is it something that has always existed and we are just calling it something new? The answer is both! Any for-profit business from the beginning of time has understood that customers need to be happy with your product or service for them to stay in business. However, in today’s world of big data we now have more information than ever to measure and track customer interactions with our brand. Additionally, there has been a broader recognition that “Customer Experience” does not just pertain to current external customers but also to our internal customers, otherwise known as employees.
So, what really is the Customer Experience? Although it has become a common term, it is difficult to find a clear definition, even though many businesses list “improving their customer experience” as a strategic goal. Without first understanding how to define, measure and improve it, the Customer Experience is nothing more than words in a mission statement or a business plan.
To start exploring the definition of the Customer Experience we must first define branding and how it is different than the Customer Experience. A brand is an intangible asset of the organization that resides in their customer’s mind. Essentially, it is the internalized perceptions an individual has about a particular brand. Many people will have perceptions about brands they never even personally interacted with. For example, Rolls-Royce Motor Cars has been named as one of the most expensive car brands in the world. Although many of us (myself included) have never driven, purchased or even seen a commercial for one, we all have a perception of what the brand is. This perception could be negative or positive, but the fact remains we have an opinion although we have never experienced this brand.
The next question is, if we never experienced this brand how could we have a perception of it? The answer is because of the Customer Experience they have created. Ultimately the Customer Experience is actions taken by a brand that influence customer perceptions or the brand. Even though you have not personally experienced a Rolls-Royce you know their employees to deliver a luxury purchasing experience and you know (or at least) perceive the quality of the product. You know these things because of deliberate actions the Company has taken to influence your perception. Every touch point an internal or external customer has with your Company is an opportunity to either negatively or positively influence their Customer Experience. Therefore, the definition and focus of the Customer Experience must go far beyond any one department or strategy. It must include strategies that focus on people, product, process and feedback initiatives and measurements. Being in business today means that you have no choice but to understand that customers expect an experience tailored to their needs, solving their problems or responding to their wants as they occur. This blog provides a framework for what the Customer Experience is, however, to move forward in creating a differentiated Customer Experience you must first define what it means for your organization.
Check back to see our next blog that will further explore the Customer Experience areas of people, product, process and feedback.