Tag Archives: CX

Results are in! Emotion is key to achieving customer loyalty.

Forrester conducted a survey of over 110,000 US adult consumers in 2018, to help measure how well a brand’s customer experience strengthens the loyalty of its customers. In this report, the US Customer Experience Index, 2018, they reveal which brands rank the highest when it comes to CX quality.

They found that emotion plays a bigger impact on brand loyalty than effectiveness or ease! This suggests that for companies that want to break away from the pack and deliver differentiated CX, focusing on emotion is a critical place to start.  

emotion key to customer loyalty
Figure 1: Forrester’s CX Index from report, “The US Customer Experience Index 2018”

Positive emotions drive long-term loyalty 

It’s no surprise that when customers feel good about your brand, they stay with you longer, but happiness is not the only emotion that matters. There are 6 feelings that customers say can help boost their loyalty:  

  • Appreciated  
  • Confident  
  • Grateful  
  • Happy  
  • Respected  
  • Valued  

Companies that can continually deliver experiences that make customers feel this way, also have more to gain than simply satisfaction. When customers associate positive emotions with a brand they are more likely to forgive an experience hiccup, refer the brand to others, and in some cases even pay a price premium for better service (How Firms Help Employees Evoke Emotions That deepen Customer Loyalty, Forrester Research, January 2018). This is truly enduring customer loyalty.  

emotion key to customer loyalty
Figure 26: Forrester’s CX Index from report, “The US Customer Experience Index 2018”

Although other aspects of the brand can influence positive customer experiences, customer service employees have the greatest impact in making customers feel the 6 emotions listed above. How the employee feels will result in how the customer feels, hence when employees are unhappy, the customer likely will be unhappy too. That’s why it’s essential to enable employees to deliver positive experiences through the following: 

  • Empowerment: Provide the necessary tools and data to make it easy for employees to create positive emotions. Consider programs or processes to offer critical feedback that focuses on how to improve the customer experience.
  • Training: Help them see opportunities to create positive experiences and ways they can improve how they handle customer inquiries. A consistent and regular training program keeps employees fresh, engaged and current. 

Be aware, negative emotions drive customers away 

It’s no surprise that the more bad experiences a customer has, the less loyal they are to your brand. Somewhat surprisingly though, anger isn’t the only impact on loyalty. Making customers feel annoyed, disappointed or frustrated is equally related to a customer’s negative emotion towards your brand.

Bad customer experiences also hurt revenue and as an example, [easy-tweet tweet=”a multichannel bank leaves $124 million on the table for every 1-point decline in its CX Index score” template=”light”]

Having the right technologies deployed properly, such as these, can reduce customer frustration: 

Tech upgrades to turn negative into positive 

Modernize IVR: 

The good news is negative experiences are avoidable. 

If you haven’t looked at or updated your IVR in a while, this is often a good place to start. Since the IVR is the first brand touchpoint for your customers when they decide to call your company, the experience they have here will dictate how they feel throughout the journey. Some benefits to a modern IVR: 

  • Natural Language: Speech recognition and text to speech realism has vastly improved in recent years.  Customers can experience a completely new paradigm in interactive technology that is more fluid, genuine and comfortable. 
  • Personalization: Reflecting customers specific situation or recent activity such as booking a flight or tracking a package means the customer’s request can be serviced quickly and seamlessly.  
  • Integrated self-service: IVR integrated with CRM can greet a caller by name or send them directly to a dedicated agent if they are a premium customer. This not only reduces negative emotions but also helps to create positive ones by making them feel valued and happy with the experience. 

Omnichannel Desktop: 

Customers want to be able to contact your company using the channel of their choice and they expect a seamless experience from channel to channel. For example, if they start a booking online they want to be able to call in and have the agent see all the activity they did online. This is possible with an omnichannel desktop along with these other benefits: 

  • Efficient resolution: Customers get annoyed when they have to be put on hold or wait too long while an agent searches for information on multiple systems. One agent desktop/screen will help agents see all the information about the customer/order and help them more efficiently.
  • Customer focus: Systems working together properly mean the agent can focus their energy on the customer, not how to get to the right screen.  Active listening and empathy are more prevalent from a relaxed and organized agent.
  • Happier employees = happier customers:  When agents have the right tools to do their job they get frustrated less and enjoy their job more. Happy employees are more likely to provide happy experiences and care more about the customer.  

Don’t stop there 

Understanding the correlation between customer loyalty and positive emotion is good but how can you put the practices in place to make it a reality? Here are 3 steps to get you started:  

  1. Understand the role positive and negative emotions play in CX If you read this blog you’re your halfway there but you can also read this complimentary Forrester report  “The US Customer Experience Index, 2018” to learn even more about the role emotion plays in CX and other 2018 findings. 
  2. Strive for more positive experiences, less negative ones:  Understanding what needs to be done is always easier than implementing it but a good place to start would be to try and ensure you are delivering more positive customer experiences than negative ones. Companies that ranked high on Forrester’s CX Index, on average, are delivering 22 positive experiences to every negative experience (The US Customer Experience Index, 2018, Forrester Research, 2018). Your ratio might not be as good as this yet but the more you improve it, the closer you will be to increasing customer loyalty.
  3.  Learn how your CX quality stacks up to your competitors:  Do you know the CX leaders in your industry and where you rank? Download the US Customer Experience Index 2018 report to see which companies where high and low on the CX index and use the findings from this report to inform your ongoing CX improvement efforts. 

Achieving differentiated CX takes work but there are big gains for companies that make the effort. Just remember how important emotion is and that customers care about how their experience with your company makes them feel.  

 

Why Prioritizing CX Is Your Secret Weapon To Business Success

Customer experience is a commonly discussed topic and certainly on the minds of many organizations. As Forrester research shows – 84% of CX executives work at firms that are prioritizing CX more than they did two years ago (“Why CX? Why Now? Forrester Research, October 5, 2016).

Although there are brands that have made significant transformations to delivering high quality CX, customer surveys reveal that this is only true for 1 in 5 brands (Why CX? Why Now?, Forrester Research, October 5, 2016). For many organizations, there is still a lot of room for improvement.

Customers switch brands faster than ever

In the age of the customer, competitive strategy can no longer rely on strength at manufacturing, distribution, or information. Companies that focus on improving their products and services only, without looking for new and better ways to engage and delight customers, no longer stand out among the competition.

Due to a new customer behavior phenomenon called hyperadoption, customers easily switch brands after just one bad experience. This is one of the reasons why it’s important to get every customer interaction right and focus on the new competitive differentiator – customer experience.

Forrester has found that year after year, brands with higher quality CX experience faster revenue growth than their direct competitors with lower quality CX (“Why & How To Lead a CX Transformation, Forrester Research, June 19, 2017). It’s been proven that when customers have a better experience, their intentions to stay, buy more, and recommend the brand all increase.

Adopting a customer-obsessed mindset is the only way to survive

With great CX being exceedingly rare, this creates an opportunity for companies that focus on CX to differentiate from their competition in a major way. To retain customers and attract new ones your organization must adopt a CX focused mindset.

  • The first step on the path to delivering great CX is adopting a customer-obsessed way of operating. According to Forrester Research, companies that have made significant headway on the journey to customer obsession shifted from a customer-aware to a customer-led mindset (“Why & How To Lead a CX Transformation, Forrester Research, June 19, 2017). To make this transformation, you need to shift from delivering customer experience that your brand has defined as acceptable to providing experiences the customer wants instead.[su_spacer]
  • Next, you need to master CX management to reliably deliver the right CX. For many companies, this may be the hardest step, and most likely the reason why they haven’t been successful in engaging their customers. Improving CX can seem elusive because it’s based on customer’s perceptions of their interactions with your brand, but it’s not as mysterious as you may think.[su_spacer]

Forrester has identified the CX competencies that your company must establish to deliver the right CX along with strategies that will allow your company to successfully complete your CX transformation.

Download this complimentary copy of the Forrester report “Why & How To Lead A CX Transformation” to learn about these competencies and gain deeper insight into how to implement this transformation within your organization.

4 Key Takeaways from G-Force 2015

G-Force 2015 was held at the beautiful Fontainebleau Hotel located on the white sandy beaches of South Miami. For many, that may be the most memorable part of the conference this year. This could hold especially true for those who danced Tuesday night away at the party presented by Empirix. For others, the shear whirlwind of activity can be overwhelming.

For either group, the following list might help to refocus on (what many will agree are) the main take away points from this year’s conference:

1.  Omni-channel

For several years, the focus for Genesys has been multi-channel. Multi-channel is about providing customers with different ways to engage with a company, such as SMS, email or chat. Omni-channel is about the use of multiple channels over multiple interactions within the context of a single request or transaction.

For example, a customer may initiate a transaction on the web, start a chat while there, or share a browser session with an agent to submit a form. Then, the customer will anticipate a call back to complete the process. In some instances, the customer may call the company to follow-up on the request. All these separate interactions share a single context, which is to fulfill the customer request or transaction. This omni-channel experience is also referred to as the “customer journey”.

2. Customer Experience (CX) Will be the Differentiator

For years, companies were able to eke out an advantage if they had the technology or applications in place to provide a service. The look or feel of technology didn’t matter, as long as it served a useful function. The ATM comes to mind. Most recently the design and interface of applications took a front seat and customers started to expect a better user experience to go along with the expected functionality.

Think about the mobile banking apps that allow cheques to be deposited by simply taking a picture! Now, especially with millennials taking over, it is expected that all applications will be highly functional and have a rich user experience. So, that leaves companies with finding ways to differentiate themselves; many are anticipating that the CX will be the way.

This could be achieved by enabling a customer to use the mobile app to request a callback or place an inbound call where the context of their experience and login is passed along first to the routing platform and then to the agent.

3. The Internet of Things

IoT is going to play a significant role in customer experience. Customers are going to be able to engage through devices that go far beyond mobile phones. Likewise, customers are going to expect companies to proactively contact them and provide an active not a passive service.

An example that comes to mind is the water filter in my fridge. It would be great if instead of just notifying me that the filter needs to be changed, it offers to have the company contact me to place an order for the correct filter for my fridge. I get a call and provide my credit card number and in a few days the filter shows up. In this engagement, they may even get me on a subscription for auto-renewal instead of having to call me.

4. Artificial Intelligence is Coming (Is here!)

IBM is positioning Watson as the forerunner of the Cognitive Era. The Cognitive Era replaces the Programming Era in which rules were followed through setup and configuration with the result of the same experience being applied to many. In the Cognitive Era, systems adapt and learn to customize the experience. The big difference is that systems in the new era can detect patterns and learn and adapt, which create a unique user experience.

I won’t go in depth here but I encourage people to learn more about what Watson is. Watson represents a significant move towards artificial intelligence and auto-attendant capabilities. It doesn’t replace the agent. In fact, Watson can be used to help the agent. But the speed at which AI is improving is staggering and slightly frightening.

For most companies, there remains a gap between where they are today with their current solutions, and the key capabilities listed with these highlights from G-Force mentioned above. The companies leading the way in better engagement with their customers are able to close that gap quickly.

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