MARKETING: ARE YOU MISSING THE BIG CUSTOMER EXPERIENCE PICTURE?

1. The rising power of consumers and why marketers need to take CX seriously

2. The current CX maturity level and the traditional marketing thinking that brought

marketers to this stage

3. Why and how the traditional thinking persists when it comes to CX

4. The new way of thinking: useful tools and concepts for a more holistic CX approach

5. How CX delivers financially and what marketing can do to take on a proactive role

6. Frequently asked questions

CONTENT

OUTLINE

1. WHY CX?

“If you make customers unhappy in the

physical world, they might each tell six

friends. If you make customers unhappy on

the Internet, they can each tell 6,000 friends.”

Jeff Bezos - Amazon's CEO

CONSUMER POWER

Technological advancements have set the expectations for timeliness, convenience, seamlessness etc. Companies with superior CX become the measurement standard

1

They're more demanding:

CONSUMER POWER (CONT.)

Competition between brands has given them more choicesIt’s increasingly easier for people to connect, collaborate and take collective action, to the point of Us (consumers) vs. Them (corporations)

1

They hold more power:

2. HOW WELL ARE WE "DOING" CX?

Source: eConsultancy

2

Marketers often think in terms of

campaigns.

Because we’ve all learned the well-known

marketing funnels, which represent linear

journeys, e.g. AIDA model or its extended

version such as AIDAS and AIDCAS.  

CAMPAIGN- BASED

MENTALITY

Source: 24point0

MARKETING 4Ps

We're still thinking about CX in terms of the Promotion part in the traditional 4Ps. Doing this can lead to risks such as:

2

Price

25%Place

25%

Promotion

25% Product 25%

PRODUCT PRICE

PLACE PROMOTION

Lack of linkage to other customer journey stagesMarketing operations becoming too rigid and formulaic

3. HOW THE OLD THINKING PERSISTS

Content-centric: focusing on creating content for the

sake of it, and then try to find distribution channels

Channel-centric: focusing on touch points instead of

overall journey (customer journey mapping is

different from touchpoint mapping)

Department-centric: reluctant/unable to share data

between sales, marketing, customer service

GAPS WE SHOULD CLOSE3

BRAND MARKETING “Brand marketing is not the only way to get customers started on their buying journey,” and certainly not the only way to get them to stay.

3

Marketers often forget that CX looks at factors in the purchasing journey from the customer’s perspective, not the business’.

WHO OWNS CX?

Nobody owns the customer experience, let alone manage it. There are 3 elements of "Experience" as shown in the diagram. Brands own the environment, but act like they own the effect.

3

4. THINK BEYOND MARKETING

We should strive to understand what customers want to

do, more than who they are.

Useful concepts and tools such as Jobs to be done,

Customer journey mapping:

Combine actions, emotions, thoughts

Include context, pain points, success points, persuasion points

Look at not just customers, but also customers of your customers

JOURNEY MAP EXAMPLE4

Sou

rce:

Ada

ptiv

e P

ath

GENERIC OR MULTIPLE JOURNEYS?

Determining if you need to create more than one customer journey map:

Do different personas warrant differential treatment for economic reasons? Do different personas wish to have such differential treatment (e.g. because you’ve set the expectations)? Is your product complex as it includes numerous, non-linear journeys?

4

Source: Smashing Magine

BASELINE JOURNEY4

Sou

rce:

Ada

ptiv

e P

ath

Or map out a baseline journey while adding variations based on what each customer profile values

5. HOW CX DELIVERS ROI

“Customers who had the best past experiences spend

140% more compared to those who had the poorest

past experiences”

Peter Kriss, Harvard Business Review

5

Companies who were Leaders on the CX

Index also did better in terms of stock value

over an eight-year period.

There was an 80% difference between CX

leaders and laggards.

CX LEADERS OUTPERFORM

CX AT A STRATEGIC LEVEL

5

To tackle CX at a strategic level, consider looking at it through three lenses (Human, Business, Technology) and two sub-lenses (Internal, External)

5

HUMAN

INTERNAL:

Realise that we’re more similar than we’re different, i.e. working for the same organization

EXTERNAL:

Have empathy for people who buy and use our products, because we’re also consumers elsewhere

5

BUSINESS

INTERNAL:

Deploy a shared CX mission, KPIs, incentives for cross-department collaboration

EXTERNAL:

Deploy loyalty, referral, user feedback and improvement programs

5

TECHINTERNAL:

Use tech to enhance CX initiatives e.g. shared data/portal, internal communication, automated workflows

EXTERNAL:

Give customers transparent data along the journey (e.g. progress bar, overall picture)

6. FREQUENTLY ASKED QUESTIONS

Where does CX start and end?

“The complete story of the customer journey with your

product or service. From start to finish. It’s how a

customer finds, interacts, and ends the relationship

with you and your product.”

Q:

A:

6

IS CX THESAME AS

UX?

CX may be broader in a sense it covers both purchasers and users. On the other hand, UX may only be specific to those who actually use a given product.

However, at the end of the day, what’s more important to address: a terminology issue or a mindset issue?

6

CAN A SUPERIOR PRODUCT BE RUINED BY BAD CX OR CAN SUPERIOR CX MAKE UP FOR A BAD PRODUCT?

 Yes, a superior product can be ruined by bad CX in the long run; and no, a bad product can’t be saved by superior CX in the long run.

The main thing is to think beyond the cycle of anyone in power, whether in business or government; or avoid corporate short-termism.

There is data to show companies operating with a long-term view outperform their peers.

Q:

A:

“We don’t manage

customers’ experience, but

we can at least manage

their expectations

of the experience.”

T H A N K S F O R R E A D I N G

C R E A T E D B Y

Read full blog post at:

blog.enabled.com.au/marketing-customer-experience/