What do my customers want? Leaders of the world today ask this question more often than ever. Leading companies understand that their business is completely dependent on client experience.
Today we will share with you an expert guide from McKinsey and other specialists in the basics of customer interactions for business restructuring taking into account the customer orientation for better results.
Due to improved analytics, the leaders in client experience receive the necessary data to strengthen customer loyalty, increase employees’ happiness level, increase income to 5-10% and cut expenses by 15-25% for two or three years. But this requires patience and the desire to look at everything with the eyes of customers and offer them a unique value. Management should begin with the analysis of the client, not the organization.
1. Observation: take a look through the eyes of customers
Technology has given consumers unlimited opportunities to dictate rules when buying goods and services. According to the study, three-quarters of them expect immediate service within five minutes of online contact. The same share of consumers expect to receive simple experience, use applications to compare options, and trust online reviews no less than personal recommendations.
Also increasingly, customers expect from all participants in the process the quick response, personalization of experience and convenience that they receive from leading players such as Google or Amazon.
The secret of better communication with customers lies in building and improving customer experience.
Identify and analyze the client journey
Analyze all customer experience from their point of view. Many companies pay attention only to individual points of contact. But the analysis of all client experience will help to assess the progression of these points of contact from beginning to end.
Focusing on traveling has two advantages:
- First, even if the staff works well at individual points of contact, the overall experience can be disappointing.
- More importantly, according to the McKinsey study, client experience is much more closely related to business results than points of contact.
The satisfaction of clients from medical insurance is more likely to be 73% when the entire journey is working well than just the points of contact. Also, guests of hotels whose travel is good at 61% are more likely to recommend it to their friends than when targeting only the points of contact.
Identify what’s important to your customers
Consumers have high demands on product quality, service efficiency and price.
How do companies understand which of these factors is more important for the segment of customers with which they work? What will have a greater impact on the economy from this?
Understanding this distribution for each segment will help companies develop a focus, influence customer satisfaction and change functions with a customer focus.
Analytical tools and data sources will help to correlate clients’ opinions about their satisfaction and their true behavior, which creates economic value.
Sometimes assumptions are not viable. So in one airport case, customer satisfaction depended more on the behavior of security personnel than on the time spent in the queue.
Identify the desire of the client experience and the common goal
In large organizations, client experience depends on collective conviction and the goal to serve the needs of customers. This goal should be clearly formulated for each employee: a single aspiration, correlated with the value proposition of the brand.
One of the most vivid examples of the common vision of the Walt Disney Company: “We create happiness by offering the best entertainment to people of all ages around the world.”
The overall goal should be further divided into a series of simple principles or standards that guide behavior.
A client journey is the foundation that allows companies to organize and mobilize employees to offer uniform value to customers in accordance with a common goal.
2. Formation: change the business, focusing on customers
Leaders of client experience begin by defining the goal and focusing on improving the journey. After that, they improve the steps that make up the journey. In order to meet expectations, they form a support process with an orientation toward client psychology. Their task is to remove the pain points from the interactions and introduce the culture of continuous improvement necessary for the fundamental transformation of the company.
Apply psychology of behavior to interactions
Building customer sensations can generate added value. Leaders in this case most often apply psychology of behavior. They determine the main factors of the travel experience, affecting the sensations and customer satisfaction.
For example, companies can create a sequence of interactions with customers to end them on a positive note. So they can try to shorten the tangible duration of each stage and the sense of progress. More companies can offer customers a sense of control and choice.
According to one pilot study of the client experience firm, the consumer loyalty index increased from the “easy” application of behavioral psychology and “hard” improvements in operations.
Take a new look at the client journey using digital technology
Clients are accustomed to personalizing and simplicity of interaction with companies such as Google and Amazon. Now they are waiting for the same experience from other players. According to the research, 25% of customers will give up the brand after only one negative experience.
To improve the experience of leaders helps the use of new technologies when working with the most important client travel. Within the framework of this approach, teams consisting of various specialists create a design, test and change the most important processes based on the reactions of customers.
Such an approach helps companies to introduce notable improvements in customer interaction processes in less than 20 weeks.
3. Realization: set up the organization to achieve results
As customer experience begins to play an increasingly important role, many companies are beginning to reflect on the transformation of consumer travel and interactions. The main difficulties for them are the definition of the structure of the organization and the point of the beginning of the introduction of changes.
First of all, it is necessary to introduce a system of customer recall analysis, train employees in a coordinated with common vision interaction and create a management structure that is customer-oriented.
Use the knowledge of the client journey to perfect the front line
All large companies motivate employees, directly communicating with customers, to perform the right actions. Leaders interact with employees at all levels of the organization and monitor their behavior and reactions.
Set metrics for customer review analysis
To increase customer satisfaction, it is not enough to analyze current events, but also to use these data to implement changes in the organization. In this case, the type of metrics is not as important as the way it is applied.
Leaders start from the very top using metrics to measure customer experience, then move on to key client travel and performance indicators, taking into account employee feedback to determine opportunities for improvement.
Implement cross-functional management
For any company, moving to a model with a central orientation to client experience is not an easy task. To move from knowledge to action, it is necessary to organize management properly.
In the management structures of the best companies there is a sponsor, director of work with clients and an executive director for each cross-functional client travel. Also in such organizations, full-time teams work on daily tasks. For the success of the transformation should also affect the normal operations.
For the inspiration of employees, managers at all levels must demonstrate an example of correct behavior and regularly report on the necessary changes.
Formal change of mechanisms and measures for the formation of necessary skills will support the transformation.
Highlight the first victories to confirm the value
Many transformations are not successful because leaders can not demonstrate their value. Leaders who highlight the benefits of improving customer experience implement programs to increase customer satisfaction that consume certain resources but provide unclear results.
It is better to build a relationship between the creation of value and results that matter by analyzing the historical effectiveness of satisfied and dissatisfied customers.
Focusing on customer satisfaction requires discipline and patience. But the first results will strengthen the confidence in the organization and the desire to continue improving.