Professional Documents
Culture Documents
Why Transform The Customer Experience
Why Transform The Customer Experience
Customer Experience
Superior CX
Standard CX
Customers not only are likely Customers use social media When an organization
to leave after one negative to demonstrate acknowledged and
experience, but also are dissatisfaction, as well as responded to a customer's
willing to pay for a better problem resolution: negative complaint:
experience.
• 89% of people would discontinue • 26% of consumers posted a negative • 46% of consumers were pleased.
their business with a company after a comment on a social networking site, • 22% posted a positive comment
negative customer service such as Facebook or Twitter. about the org.
experience, rising from 68% in 2006 • 79% of the consumers who shared
in the previous year's (2011) survey complaints about a poor customer
results. experience online had their
• 86% of consumers would pay more complaints ignored.
for a better customer experience. • Of the 21% who received a response
• 73% of consumers would expand to their complaint(s), more than half
their purchases with a merchant by had positive reactions to the same
10% or more if the merchant company about which they had
delivered a superior customer complained.
experience.
Source: Gartner 6
Case Study
Tokio Marine & Nichido Fire Insurance, a property and
casualty insurance company, was able to increase its early
renewal rate from 29.4% in 2005 to 72.5% in 2010 with its
customer experience redesign project.
Q: Which five technology-enabled capabilities will be the most important areas of investment to improve your business over the next 5 years?
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Customer experience management is top of the CEO's agenda. CEOs, CIOs and
chief marketing officers have become interested in this topic because low-cost
and ubiquitous access to information for customers, the rise of globalization,
and the "death of distance" mean that customers are more empowered than
ever. While this isn't true of every industry and geography, it's the case in more
sectors every day. Customers can compare experiences across industries and
force regulators and governments to be more accountable. At the same time,
competitive differentiation — achieved through a strategic decision to invent
better products that are hard to imitate, or by being the most efficient producer
of a service — has diminished over time. What remains the same is how
challenging it is to create a superior customer experience that will serve as a
sustainable differentiator.
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The Digital Disruption Has Already Happened
World’s largest taxi Largest accommodation Largest phone World’s most valuable
company owns no provider owns no real companies own no retailer has no
taxis estate telco infra inventory
10 Source: IBM 10
In one sense, this portends a frightening future for some, but it also unlocks
wealth-creation opportunities on a scale never seen before.
The most contentious battle yet in the telecoms space has to be the fact that while
traditional fixed and mobile operators have invested in the underlying
infrastructure to make broadband over computers and smartphones almost
ubiquitous, the reality is consumers are using this infrastructure to make calls and
send messages using services from Facebook, WhatsApp and others.
Known as over-the-top (OTT) platform providers, services like Facebook
Messenger, WhatsApp and Skype are eating the lunch of telecoms providers all
over the world who are struggling with the digital disruption that they laid the
groundwork for. Skype was acquired by Microsoft two years ago for more than
$8.5bn and Facebook acquired WhatsApp for $19bn. These services effectively
allow consumers to make voice and video calls for free. As of September 2015,
WhatsApp had over 900m users while Skype has over 660m users. Meanwhile,
voice and SMS revenues that were a pot of gold for telecoms operators are
steadily declining.
https://www.siliconrepublic.com/companies/digital-disruption-changed-8-industries-
forever
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