The Customer Experience in 2010

Bruce Temkin, Vice President at Forrester Research, writes that perhaps due to the economic difficulties of 2009, companies are putting a great deal more focus on customer relations in 2010. No wonder, considering that now more than ever it is critical to not only generate new business, but to keep current clients and customers happy so as to retain existing business. In his article "Seven Keys to Customer Experience", Mr. Temkin gives seven insights into how businesses should treat their customer service process in 2010. Below is the text of his article, available at http://www.fastcasual.com/article.php?id=16887&na=1:


1. Drop the executive commitment facade. It’s very easy for executives to say "customer experience is important." But it’s much more difficult for them to dedicate the time and energy required to make it a real priority. So in 2010, executives should either get actively involved in customer experience transformation or drop it from their agendas.

Start here: Develop a customer experience dashboard and manage the results with the same energy that you manage financial results.

2. Acknowledge that you don’t know your customers. When market research teams require long lead times and expensive projects to answer questions about customers, too many organizations go without this insight. But the path to customer experience success requires significantly deeper customer observations. So in 2010, companies need to develop voice-of-the-customer programs that provide ongoing and continuous access to customers' desires.

Start here: Create a voice-of-the-customer program with a cross-functional team that focuses on four "LIRM" components: listening to customers, interpreting the feedback, reacting to the data and monitoring results from actions over time.

3. Keep from getting too distracted by social media. Twitter, Facebook and other social media sites may seem sexy, but they aren’t the only channels for customer feedback. Other channels like comments on surveys and call center feedback can often provide even richer hints. So in 2010, companies need to learn from social media feedback, but not overreact to it.

Start here: Treat social media as one of many listening posts in a comprehensive voice-of-the-customer program that examines both structured and unstructured feedback.
4. Stop squeezing the life out of customer service. My research shows that consumers care more about good customer service than they do low prices. It also turns out that many customer service interactions are critical "moments of truth" that drive customer loyalty. But companies often treat customer service as an unwanted stepchild, focusing almost exclusively on aggressive cost-cutting. So in 2010, companies need to start viewing customer service as a strategic asset.

Start here: Measure customer service organizations based on how effectively they help customers instead of efficiency metrics like average handle times.

5. Restore the purpose in your brand. True brands are more than just color palettes, logos and marketing slogans, they’re the fabric that aligns all employees with customers in the pursuit of a common cause. They represent a firm’s raison d’être. Unfortunately, many companies have lost this sense of purpose in their brands. So in 2010, companies need to redefine their brand and embed it in the hearts and minds of all employees.

Start here: Translate your brand into promises you will make (and keep) with customers across every key touch point.

6. Don’t assume employees will get on board. Employees are often the most critical element of any customer experience effort. But firms can’t just hope that everyone will participate in these change initiatives. So in 2010, companies need to actively focus on engaging employees at every level across the organization in their customer experience efforts.

Start here: Communicate (a lot) about "why" customer experience is important and allow employees to participate in defining "how" to make improvements.

7. Translate customer experience into business terms. My research uncovered a strong correlation between customer experience and loyalty. An average $10 billion company can generate $284 million of additional revenues from customer experience improvements. But most companies don’t fully understand the link between customer experience and business results. So in 2010, companies need to identify how customer experience impacts their financial results.

Start here: Engage the CFO to develop a model which shows the impact that customer experience has on customer loyalty.