1. Understanding Customer Experience
Bain & Company Survey
Customers of 362 Companies
8% of Customers Described Experience as “Superior”
80% of Companies Believed They Were Providing a Superior Experience
Direct Correlation Between Customer Satisfaction and Customer Experience
Satisfaction = Good Experiences – Bad Experiences
Close the Gap Between Expectation and Experience

2. Case Background Two types of contacts
Direct : occurs during purchase, use, and service and usually initiated by customer
Indirect: involves unplanned encounters with representations of co.’s products, services, or brands, & takes the form of word-of-mouth info., advertising, news reports, reviews, etc.
Differences of experiences between:
B2B: trouble-free & easy to use are important
B2C: both quantitative and subjective

3. Case Background Touch Points Customer Corridor
Instances of direct contact between the customer and the product or service
Change over time
Not all touch points are equal
Product or Service
Expectations vs. Experience
Previous experiences as reference points
Market Conditions
Competition
Customer Corridor
The series of touch points that a customer experiences

4. Customer Experience Mgmt vs. Customer Relationship Mgmt

5. CEM and the Service Package/Vision
CEM can help identify the weak areas of a company’s service package and enhance the Strategic Service Vision.
CEM can measure all aspects of the service package and strategic service vision
CEM tracks past, present, and potential customer patterns to obtain accurate information
Buyer frequencies determine level of data collection
Persistent
Periodic
Pulsed

7. Business Alignment
To be a service winner CEM must be a top company priority and aligned throughout all business units to have an affect
Marketing: Understand and communicate customer demands
Service: Ensure processes, skills and practices are attuned at every touch point
Product Development: Incorporate customer feedback into design process

8. Business Alignment (Cont.)
IT: Collect and analyze CEM data, integrate it with CRM data, and communicate findings to internal users
Human Resources: Communicate strategy and describe how CEM will alter work and decision-making processes
Account Reps: Understand and utilize detailed touch point analysis, communicate findings internally and to customers

9. Customer Experience Management (CEM)
When Does the CEM Approach Work?
Should work in every possible scenario
Can company afford investment in a “closed-loop” process?
Every business function involved in delivering a good experience
Treo
Senior management provides support and direction
Requires time and money to implement
Surveys
Pattern data collection and analysis
Changing work processes, systems and structure to reflect a focus on customer experience

10. Customer Experience Management (CEM)
When to Invest in CEM?
Should be implemented in every company
Service
Production
Highly competitive industries
Reputation for good customer experience can help distinguish companies
Ease of working with company is likely to increase customer retention
When other competitors focus on CEM
When other competitors lack CEM focus

11. Customer Experience Management (CEM)
When Not to Invest in CEM
Switching costs are high
Company provides a unique service where very few alternatives exist
Keep the customer in mind, but do not place such an emphasis on Customer Experience Management
Focus more on Customer Relationship Management (CRM)
When competition for customers increases and/or more alternatives to service are developed shift focus to CEM