CX as a competitive advantage
Earning a competitive advantage is a hard-fought battle, and there are many areas on which to focus company efforts. What investments have the best results in delivering that advantage? Customer experience (CX) is one.
“A customer is four times more likely to defect to a competitor if the problem is service related than price or product related.”
Seen in such terms, the value of improving customer experience is crystal clear.
According to UK agency Livework, an investment in improved customer experience is often better than an investment in optimizing internal processes in delivering competitive advantage. But where does one focus this investment?
One such area is to put greater focus on experiential “hotspots”, according to a recent post of theirs.
Hotspots are points in a service in which customers frequently encounter negative experiences: “Business are usually aware of their customer experience hotspots, or can easily point them out. Poor handovers from sales to after-sales or overly complex instructions tend to lead to preventable incidents. The customers response to these events ranges from mild irritation to logging an issue or complaint.”
But although the hotspots might be easily identifiable, the trick is to put in place an appropriate remedy, at the right place along the customer journey. “Organizations tend to fix and solve problems that seem to be the cause of the experience hotspots. Solving an issue does not necessarily have a positive impact on the overall customer experience. Designing interventions that prevent a particular situation from happening can eradicate one or more hotspots.”
Source: “From customer experience to competitive advantage” (Livework – “Service Equity”, July 2013 issue)
Customer experience (65)