Management Perspectives

I n nearly all sectors, especially the service-related ones, a new business agenda is emerging that is changing the landscape of customer experience and making traditional approaches no longer relevant. Customers are increasingly making choices based on emotion rather than rationale, and their thoughts and feelings can be shared to millions, instantly, in our super-connected world. Furthermore, brands are no longer owned by organisations, but co-owned with customers, employees, service partners, and investors. And employees themselves want a sense of meaning and fulfilment from the companies they represent. There has been a general shift from a product-based economy to an experiencebased one. For organisations, the role of its customers and employees as ambassadors is of huge importance, today. In short, the successful organisation of tomorrow will deliver a customer experience that reinforces a sense of shared values with customers and other stakeholders. In Supercharging The Customer Experience, we challenge several myths about the traditional approach to customer experience which is no longer relevant in light of the paradigm shift above.

MYTH 1: Customer experience is the same as customer service.

Many believe that customer experience revolves solely around customer service interactions. However, this is a misconception. Customer experience encompasses every touchpoint a customer has with the organisation, whether online, in-store, or over the phone, to shape the customer's perception of the brand. For instance, a well-designed website can enhance the overall experience before a customer even engages with any person representing the organisation. Similarly, post-purchase communications, such as thank-you emails or follow up courtesy calls, can maintain positive relationships and foster loyalty. By recognising and optimising all touchpoints, organisations can deliver a values-driven brand-aligned, consistent customer experience that differentiates them from competitors, provides satisfaction, encourages loyalty and inspires advocacy. Customer service is often the role or function that occurs after the product or service has been delivered.

MYTH 2: Customer experience is the responsibility of the CX function. While the CX function can play a crucial role, in our experience, delivering an excellent customer experience requires a holistic approach. Every department, from marketing to service delivery, contributes to shaping the overall customer experience. For example, marketing teams create messaging and promotions that attract customers, while service delivery teams deal directly with the customers. Even employees in administrative or other support roles with ‘internal customers’ indirectly impact the customer experience through their efficiency and responsiveness. By fostering a culture where customer satisfaction is a priority for every employee, leaders give themselves the best chance of the organisation delivering consistency and alignment across all touchpoints. This collective effort can create a customer-centric culture throughout the organisation, leading to improved loyalty and advocacy for customers and employees alike. An activity like customer journey mapping will help to understand the flow and touchpoints that customers have throughout their interactions across all areas of the organisation. MYTH 3: Customer experience is only relevant for B2C companies. Contrary to popular belief, customer experience is pertinent across all types of organisations and even support functions within an organisation. Every interaction influences customer perception and loyalty whether this is in a B2C, B2B, third sector, or a public services setting. In B2B relationships, for instance, the quality of customer service and the ease of doing business can significantly impact client retention and longterm partnerships for contracts that can be worth tens of millions of dollars. Similarly, in the public sector, citizens expect efficient and user-friendly interactions with government services and representatives. Non-profit organisations rely on positive experiences to attract donors and volunteers and fulfil their missions effectively. Customer experience is even relevant to an internal function such as Finance or Corporate Communications and the way they are perceived by their ‘internal customers’. Regardless of the industry or sector, organisations that prioritise customer experience can demonstrate a commitment to understanding and meeting the needs of their customers, in whatever form, resulting in increased satisfaction, loyalty, and advocacy.

MYTH 4: Investment in customer experience is an optional extra.

Some may view investment in customer experience as discretionary. However, ignoring it can lead to dire, even fatal, consequences. In today's competitive landscape, when your competitor is one mouse click away, prioritising customer experience is imperative for long-term success. Without customers, an organisation has no reason to exist. Investing in customer experience initiatives demonstrates a commitment to continuous improvement and customer satisfaction. This may involve upgrading technology systems to enhance the online shopping experience, training employees to deliver exceptional service, or implementing feedback mechanisms to capture customer insights. Organisations that prioritise customer experience not only retain existing customers but also attract new ones through positive word-of-mouth and online reviews. Moreover, studies have shown that customers are willing to pay a premium for superior experiences, making it a strategic differentiator in the marketplace. Viewing customer experience as an investment rather than a cost helps organisations to create values-driven service for sustained performance.

MYTH 5: AI and data are the future of customer experience.

While AI and data are both invaluable tools for the future development of customer experience management, they are only the beginning. Insightful analysis informs strategic decisions, but true success lies in implementation and fostering a people-driven customer experience culture. Empowering employees to prioritise customer satisfaction ensures sustainable growth and loyalty. AI and data analytics can provide valuable insights into customer behaviour, preferences, and pain points, allowing organisations to personalise interactions and anticipate needs. However, it's essential to translate these insights into actionable strategies and initiatives that enhance the overall customer experience. This requires customer experience delivery with a ‘human touch’ for the best results and to avoid any potential confusion or mistrust from the customer. Moreover, fostering a people-driven culture where employees are encouraged to empathise with customers and proactively address their needs is critical. Organisations that prioritise both data-driven insights and a human-centric approach can create meaningful and memorable experiences that resonate with customers on a deeper level, engendering trust, driving loyalty and advocacy. We advise not to throw everything at AI or technology, balance is the key…and more importantly, finding the right solution for your organisation. Our book was inspired by the question: “With all the content out there on the topic, why is great customer experience so rare?” Our answer is that content is vastly over-rated and what is far more important is context, designing, and implementing customer experience specifically designed for your unique situation and set of circumstances.