A guest post by David Vap, Group Vice President, Oracle Applications Product
Development
What does customer experience mean to you? Is it a strategy for your
executives? A new buzz word and marketing term? A bunch of CRM technology with
social software added on?
For me, customer experience is a customer-centric worldview that produces a
deeper understanding of your business and what it takes to achieve sustainable,
differentiated success. It requires you to prioritize and examine the journey
your customers are on with your brand, so you can answer the question, "How can
we drive greater value for our business by delivering a better customer
experience?"
Businesses that embrace a customer-centric worldview understand their
business at a much deeper level than most. They know who their customers are,
what their value is, what they do, what they say, what they want, and ultimately
what that means to their business.
"Why Isn't Everyone Doing It?"
We're all consumers who have our own experiences with many brands. Good or
bad, some of those experiences stay with us. So viscerally we understand the
concept of customer experience from the stories we share. One that stands out in
my mind happened as I was preparing to leave for a 12-month job assignment in
Europe.
I wanted to put my cable television subscription on hold. I wasn't leaving
for another vendor. I wasn't upset. I just had a situation where it made sense
to put my $180 per month account on pause until I returned. Unfortunately, there
was no way for this cable company to acknowledge that I was a loyal customer
with a logical request - and to respond accordingly. So, ultimately, they lost
my business.
Research shows us that it costs six to seven times more to acquire a new
customer than to retain an existing one. Heavily funding the efforts of getting
new customers and underfunding the efforts of serving the needs of your existing
(who are your greatest advocates) is a vicious and costly cycle.
"Hey, These Guys Suck!"
I love my Apple iPad because it's so easy to use. The explosion of these
types of technologies, combined with new media channels, has raised our
expectations and made us hyperaware of what's going on and what's available. In
addition, social media has given us a megaphone to share experiences both
positive and negative with greater impact.
We are now an always-on culture that thrives on our ability to access,
connect, and share anywhere anytime. If we don't get the service, product, or
value we expect, it is easy to tell many people about it. We also can quickly
learn where else to get what we want.
Consumers have the power of influence and choice at a global scale. The
businesses that understand this principle are able to leverage that power to
their advantage. The ones that don't, suffer from it.
Which camp are you in?Note: This is Part 1 in a three-part series. Stop back for Part 2 on November 19.
