This article describes the 5th of 10 unique characteristics of customer experience relative to more well-known concepts such as customer satisfaction and retention. The characteristic defined in this article is: Choice — Customer experience is built on trust and mutual respect for variety; share of budget is more important than loyalty.
So you want a relationship with your customer? If one of your greatest hopes is for your brand to be loved by your customers, think about what it takes for your personal relationships to thrive. Since customers (even B2B) are people, they tend to have similar responses to relationship strengths and weaknesses whether the relationship is personal or with a brand. As you know from your own experiences, trust and respect for your choices are at the root of relationship failure or success. Yet, customers’ trust of companies is steadily eroding! In fact, U.S. consumers’ trust dropped a whopping 8 points from 2010 to 2011 in the Edelman Trust Barometer study1, and U.S. and U.K. firms rank 8th and Continue reading →
Customer satisfaction as a business concept has been around for more than 20 years — but customer experience management (CEM) has only been discussed over the past several years. So it’s no wonder that CEM is often equated with earlier concepts. The articles listed below can be instrumental in clarifying customer experience as a unique set of truths, essential for business success with 21st century customers.
1. Perspective: customer experience is defined entirely by the customer, not the solution provider.
Why is it hard to retain customers? Of course there’s the ongoing battle with competitors. They may make highly attractive offers to your customers that are hard for them to refuse, and their brand affinity may have strong appeal to your customers – brand affinity here is positive association built through cause marketing, perceived social status and so forth.
Over-focus on customer acquisition teaches customers to switch brands. For example, the brand switching rate, called customer churn, is 40% for the mobile phone industry, compared to a 7% customer churn rate for the insurance and financial services industries. As growth slows in acquiring new customers – either due to the economy or to shrinking technological gaps with competitors, more companies are pursuing customer retention as a vital corporate strategy.
Not Planning or Funding Retention
Most executives and marketers can quote the well-known universal statistics on customer retention – that a small improvement in the number of customers retained can Continue reading →
Talking to your customers is a key strategy to weathering bad times. It’s a great way to keep your finger on the pulse of how loyal your customers are and to increase their loyalty to you — a very critical factor in times like these. It’s much harder, more expensive, and more time-consuming to get a new customer than to keep an existing one. Now, more than ever, you cannot afford a mass exodus — or even a slow leak — of your current customer base.
Why Do You Need to Stay in Touch?
To stay relevant. You need to ensure that you are keeping updated on what is changing for your customers. You can’t expect that what you knew about your customers and their needs last year still applies.
To avoid making big mistakes. Getting ongoing input from your customers about what is most important to them is a good way to make sure that you are not cutting Continue reading →