A study by researchers
from Miller Heiman Group suggests that in today's market competition, growth strategies
based on product innovations and low pricing are not sufficient for a lasting
effect. Customer loyalty is what plays a role in higher customer retention
rates.
Using this study, they
uncovered four key ways that helped leading organizations differentiate
themselves through their customer experience strategy:
Executives Walk the
Talk:
The senior executives in
both leading and stagnant organizations believed customer loyalty is a key to
success. However, there was a difference in how they backed up those beliefs.
Leading organization's executives were willing to invest money resources twice
that of stagnant organizations into their customer experience initiatives.
Customer Experience
Practices Translate Strategy Into Action:
Neither does the
knowledge of merely improving an organization's customer service experience
work nor does the plan of providing the best service or effortless experience
help. The knowledge needs to be converted into specific actions. The following
5 practices that contributed to customer experience improvement are:
- Linking the investment in customer experience to
business outcomes.
- Defining and communicating a vision for the desired
customer experience rather than fixing broken customer experiences.
- Ensuring that the customer experience stands up to the
brand promise of the organization.
- Capturing the voice of the customer (VoC) data to
monitor the customer experience delivery.
- Driving
continuous improvement using this VoC data that shows the possibility to
close the gap between customer feedback and organizational action.
Use Journey Maps to
Eliminate Organizational Silos
The main difference
between leading organizations and stagnant organizations in this regard comes
down to the silos existing between marketing, sales, and customer service. The
study also identified 3 customer experience practices that help leading organizations
beat the stagnant ones:
- Creating a customer journey map to link interactions
with customer expectations and emotions. These customer journey maps are
an important tool in breaking siloed communication. They help in
diagnosing problems that can arise in the path of the customer via the
organization; for example, a sales team might promise services that a
product can’t deliver, leading to problems that customer service can’t
address.
- Data is available on the positive and negative elements
of the customer experiences.
- Best
practices are collected and shared across sales and service organizations
to be able to address these roadblocks in a better way.
Hire and Develop the
Right Talent
It is quite essential
for an organization to manage its people efficiently. Most of the organizations
excel throughout the talent lifecycle, right from hiring, assessing
performance, and implementing improvement plans to terminating poor performers.
Following are the best practices followed by these leading organizations:
- Recognizing service personnel for performance.
- Developing the knowledge and skills of service
personnel.
- Building teams across the service organization.
- Setting standards for the service organization.
- Empowering
frontline employees to take action.
Timely training for
service reps that includes instruction for product and service expertise
improvement and for teaching soft skills is necessary. Teams should also
receive meaningful feedback and coaching to reinforce this training.
The Customer Experience
Best Practices Study by Miller Heiman Group is full of insights that can
help you start building a customer experience strategy to differentiate your
organization and build brand loyalty.
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