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Casual Articles - Customer Experience Management: Will It Ever Challenge Its Rich Cousin CRM?
A favorable factor that influences clients to form limited liability companies is that they are a type of business ownership that maintain the interest of owners and protects their personal properties. If a LLC is dragged into a court case or incurs losses, owners are not bound to declare bankruptcy. In such cases, their personal assets remain protected. This feature has prompted the establishment of different types of LLCs.A single member LLC is the simplest form of business and a sole proprietor directly owns the business and is personally liable for debts. The only exception he enjoys is complying with any related licensing requirements, as
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of
If one were to go an annual report for El Paso Energy from 2000; they would find on page 11 of the shareholders report a picture of their 80,000 square foot trading floor, with 700 merchant staff. Enron many thought had in fact originated this; once upon a time claiming to be the largest in the world energy trading floor. So it was not new for Enron have come up with the concept, yes as far as trading floors for energy were concerned they did build a bigger one. It was not totally innovative for them to have more traders at that point, not even very innovative to trade other things like; lumber futures to Del Webb or Pulte Homes or US Homes, or bandwi
Yes, CEM is currently a poor cousin to CRM. If it is to grow up and become a powerful business tool it must move out of marketing and directly link itself to business outcomes.
Having actively worked in CEM for the past three years I believe that there are four areas that are currently holding CEM back from its full potential:
1. Viewing customer experiences and business value in isolation
Bernd Schmitt’s, often quoted definition of CEM as "the process of strategically managing a customer's entire experience with a product or a company(1)" is flawed to the extent that it doesn’t explicitly connect the experience to business outcomes.
Forget the motherhood statements, lets get practical. We are all trying to meet company goals, whether they be revenue, profit or market share. If we can’t demonstrate how our investment in customer experience improves those business outcomes then we’re not going to be here very long.
As an example of this type of gap we recently worked with a financial services organization that conducts tens of thousands of customer surveys a year, gathering a range of experience data. Yet at no time did they link the survey data with customer records and profitability patterns, even anonymously. As a result they could tell you volumes about the customer experience but nothing about the incremental business value of that experience. In order to get traction; the customer experience, the cost to implement and the business benefit need to be directly linked and stated in cold hard terms.
2. Companies still measure the wrong outcomes.
Thankfully, some companies are starting to see that customer satisfaction scores are almost meaningless in predicting customer behavior. However, even with a range of research to support this view(2) , many still swear by them. Customer satisfaction ratings will stay around for awhile because they are integrated into so many KPIs and bonus plans but satisfied customers are now just table stakes: you have to have them but they don’t differentiate you.
So what should you measure? Start with something useful: demonstrated customer loyalty, i.e. how do individual customers actually behave in terms of re-purchase, customer lifetime and customer profitability. They are a basis for understanding the value of each customer and in turn the value of their experience with your company. Remember, if you don’t measure the right outcomes you will be forever chasing the wrong drivers.
3. Companies don’t know what drives behavior
I’m still flabbergasted by the number of organizations that collect immense amounts of data (transactions, web stats, customer surveys) but fail to analyze it to understand which elements of the customer’s experience drive behavior. If you don’t know which customer experiences drive behavior how can you do any customer experience management?
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of
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Bernd Schmitt’s, often quoted definition of CEM as "the process of strategically managing a customer's entire experience with a product or a company(1)" is flawed to the extent that it doesn’t explicitly connect the experience to business outcomes.
Forget the motherhood statements, lets get practical. We are all trying to meet company goals, whether they be revenue, profit or market share. If we can’t demonstrate how our investment in customer experience improves those business outcomes then we’re not going to be here very long.
As an example of this type of gap we recently worked with a financial services organization that conducts tens of thousands of customer surveys a year, gathering a range of experience data. Yet at no time did they link the survey data with customer records and profitability patterns, even anonymously. As a result they could tell you volumes about the customer experience but nothing about the incremental business value of that experience. In order to get traction; the customer experience, the cost to implement and the business benefit need to be directly linked and stated in cold hard terms.
2. Companies still measure the wrong outcomes.
Thankfully, some companies are starting to see that customer satisfaction scores are almost meaningless in predicting customer behavior. However, even with a range of research to support this view(2) , many still swear by them. Customer satisfaction ratings will stay around for awhile because they are integrated into so many KPIs and bonus plans but satisfied customers are now just table stakes: you have to have them but they don’t differentiate you.
So what should you measure? Start with something useful: demonstrated customer loyalty, i.e. how do individual customers actually behave in terms of re-purchase, customer lifetime and customer profitability. They are a basis for understanding the value of each customer and in turn the value of their experience with your company. Remember, if you don’t measure the right outcomes you will be forever chasing the wrong drivers.
3. Companies don’t know what drives behavior
I’m still flabbergasted by the number of organizations that collect immense amounts of data (transactions, web stats, customer surveys) but fail to analyze it to understand which elements of the customer’s experience drive behavior. If you don’t know which customer experiences drive behavior how can you do any customer experience management?
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of
Even the biggest multinational company has humble beginnings. Many of the brands and companies that are known all over the world started as a small family business. A number of these companies have achieved success after they have franchised their own businesses. Thus, if you dream of becoming big and successful all over the world, you might consider franchising your business.Before you get excited over the prospect of franchising your business, however, you should first consider if your company is ripe to undergo such a big a step. Your business is ready for franchising if it possesses the qualities enumerated below:Longevity and Sizedata. Yet at no time did they link the survey data with customer records and profitability patterns, even anonymously. As a result they could tell you volumes about the customer experience but nothing about the incremental business value of that experience. In order to get traction; the customer experience, the cost to implement and the business benefit need to be directly linked and stated in cold hard terms.
2. Companies still measure the wrong outcomes.
Thankfully, some companies are starting to see that customer satisfaction scores are almost meaningless in predicting customer behavior. However, even with a range of research to support this view(2) , many still swear by them. Customer satisfaction ratings will stay around for awhile because they are integrated into so many KPIs and bonus plans but satisfied customers are now just table stakes: you have to have them but they don’t differentiate you.
So what should you measure? Start with something useful: demonstrated customer loyalty, i.e. how do individual customers actually behave in terms of re-purchase, customer lifetime and customer profitability. They are a basis for understanding the value of each customer and in turn the value of their experience with your company. Remember, if you don’t measure the right outcomes you will be forever chasing the wrong drivers.
3. Companies don’t know what drives behavior
I’m still flabbergasted by the number of organizations that collect immense amounts of data (transactions, web stats, customer surveys) but fail to analyze it to understand which elements of the customer’s experience drive behavior. If you don’t know which customer experiences drive behavior how can you do any customer experience management?
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of
The fundamentals of real estate marketing Before we go into the best practices of a personal marketing program, it would be a good idea to touch on the key elements that make up such a program. Call it "Personal Marketing in a Nutshell."Marketing is more than just blasting the neighborhoods with your farming pieces. It's about how you present yourself (and how your company presents itself) to prospects and customers. Effective personal marketing combines elements of direct marketing, public relations and education. It is the sum of all your informational parts.In this article, we'll be dissecting the direct market
So what should you measure? Start with something useful: demonstrated customer loyalty, i.e. how do individual customers actually behave in terms of re-purchase, customer lifetime and customer profitability. They are a basis for understanding the value of each customer and in turn the value of their experience with your company. Remember, if you don’t measure the right outcomes you will be forever chasing the wrong drivers.
3. Companies don’t know what drives behavior
I’m still flabbergasted by the number of organizations that collect immense amounts of data (transactions, web stats, customer surveys) but fail to analyze it to understand which elements of the customer’s experience drive behavior. If you don’t know which customer experiences drive behavior how can you do any customer experience management?
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of
It's no secret that the U.S. lost a significant market share in key industries: wide-bodied aircraft, semi-conductors, automobiles, electronics, and steel. The U.S. manufacturing base has eroded to offshore competitors; we've lost our edge in price, delivery and quality. Our foreign competitors are delivering high quality products with one pass through the factory, while we're consumed in fixing mistakes.In the meantime, U.S. manufacturing has gone through a lot of pain and expense in its attempts to find the solution, turning to a variety of techniques: MRP, JIT, Lean Production, 5S, TQM, cells, VSM, FMS, CIM, and BPR. Progress is slow, and we
One of our clients undertakes rolling six monthly customer surveys. A few surveys ago we identified that “documentation” was a key driver of client discontent and gave them some concrete suggestions on changes to make. Over the course of six or eight months they resolved the issues and their score lifted. This resolved customer discontent and reduced help desk support requirements.
In another case a credit card company was about to build a new call centre to reduce customer hold times because a survey indicted that it was a driver of customer satisfaction. Some additional focused research and analysis showed that yes customers did want the phone answered quickly and it was a driver of customer satisfaction but it was only a one percent driver of the key customer behavior: loyalty. There were many more important things to do first.
Understanding which customer experiences drive customer behavior allows you to focus your attention on the few important areas not the unimportant many areas.
4. Waiting for perfection
If I had 10cents for every customer that told me their data was no good or “we’re waiting until our new CRM/call centre/data matching/etc/ system to be implemented,” I could retire.
The truth is that there is always something that you can do with what you have now. Plus, if you get started immediately you will have some runs on the board and be better prepared when the CRM/call centre/data matching/etc/ system finally arrives.
These are certainly not insurmountable barriers. If we can get CEM over them, it will be a significant driver of company profitability and value in the medium term. If we can’t then it will become just another good idea that gathers dust.
References:
1. Schmitt, B. (2003) Customer Experience Management, The Free Press, New York, 2001.
2. Reichhel, F. (2002) The One Number you Need to Grow, Harvard Business Review, 2002
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