Harvard Business Review Analytic Services recently released a report entitled Lessons from the Leading Edge of Customer Experience Management.
The group studied more than 400 executives around customer experience management – the collection of processes an organization uses to manage customer interactions across an enterprise.
Highlights resulting from the study found 53% of the respondents stating they believe that customer experience management provides a competitive advantage, and 45% view customer experience management as an important strategic priority.
However 45% of those surveyed found tying customer experience investments to business outcomes very difficult.
The report asserts that leading-edge companies face the same customer experience struggles as the laggards do, but differ in how they respond to the challenges. These organizations aren’t waiting for someone to solve the problems for them.
They’re dedicating the resources to ﬁgure these concerns out for themselves, ahead of the competition. They’re putting the capital, procedures, and strategies into place to overcome these hurdles and emerge victorious.
Customer Experience Management is more important now than ever before. Organizations have to optimize their customer experience across multiple channels, methodologies and platforms.
Customers eagerly share, compare and rate brand experiences on social media, at the same time, demanding real-time information and services on their mobile devices. With customer experience set to become even more intensified and defining, it’s time for enterprise to harness emerging tools and tactics.
According to the research, a little more than a third of the respondents say that their company is forward-looking with respect to customer experience management. Lack of industry standards and integration of new systems of engagement with legacy systems of record seems to be a common hurdle many organizations are facing.
People, processes, systems and data lie at the heart of customer experience management difficulties. Corporate data silos make it difficult to assemble and share a single unified profile of the customer across the entire enterprise.
Each division has its own data that it’s deemed important about the customer, but few departments understand how their data could help another aspect of the same company.
Enterprise networks have always been segmented by types of users and divisions, and few network administrators have allowed one segment to access another company segment’s data. Optimizing an end-to-end customer experience dictates that organizations assimilate previously disconnected channels.
Almost half of the respondents acknowledged that multichannel management is a significant challenge to their organization. The key concerns with creating a consistent customer experience are systems integration, multichannel complexity, data issues, and company structure.
Statistics from the survey indicate the biggest obstacles in providing a consistent customer experience to be:
System Integration | 46%
Multichannel Complexity | 37%
Organizational Structure | 33%
Data Issues | 33%
Lack of Strategy | 32%
Customer experience management is more important to leading-edge companies when compared to laggards. Seven out of ten surveyed said it’s a significant strategic priority for their firm. In contrast almost half of the lagging organizations responded that customer experience is not important.
A comparison of business outcomes derived from customer experience management including both leading and lagging companies indicates a clear win for those organizations that institute these solutions. While this is only a small cross section of the economy it is nevertheless illustrates a significant point.
Numbers don’t lie – a whopping 60% of leading-edge companies in the survey reported heighted profitability while the laggards came in at 35%. Company growth and revenue – another significant measurement, showed 60% by frontrunners but only 28% from the slackers.
Market share and other aspects also measured in favor of those companies that focus on customer experience management; with 54% customer growth from leaders, while only 20% was reported by those who didn’t deem customer experience management important.
Six lessons emerged from taking a closer look at the practices and metrics these leaders employ:
- Create a customer-centric culture
Think like the customer
Give the business control of customer experience
Tame channels and data
Expand the definition of customer experience success
In summary, organizations can no longer afford to wait before making customer experience management a strategic priority. It’s become an imperative to those companies wish to remain market leaders in the age of the customer.
For more information about embracing analytics to improve processes and grow revenue register to attend the upcoming webinar: Detecting and Preventing Warranty Fraud Using Predictive Analytics on Wednesday, May 7th at 1:00 PM Eastern Standard Time.
Register today and receive a complimentary copy of the recent report Customer Experience Management: Strategies to Succeed as well as webinar video and associated content.