Would you recommend your company…to your best friend? If not now…soon you may…with the shift to delivering customer value underway.
In the global economy of the 21st century, products have become commodities. Global companies can match the features and prices of almost any product in any industry. What then can companies do to differentiate their offering and add customer value? Linda Sharp, CEO of Religence recommends focusing on and quantifying the customer relationship, based on what people DO. It’s as simple and as hard as that.
Come to her BMANorcal Presentation January 12, 2017: Customer Relationship Intelligence (CRI) to learn about how to quantify relationships and map value creation to:
- Take the next operational step beyond customer journey maps and CES (Customer Effort Score), which only qualify relationships based on what people SAY
- Quantify how easy or how hard it is for a customer to deal with the company and what impact, positively or negatively, this has on customer value
- Calculate costs to the customer in extra time and effort…and costs to the company
- Balance the value provided to the customer for the price paid, and the revenue value received versus the variable costs expended by the company
- Identify how to improve profit while at the same time improving on what customers’ value
For where and when details and to register go to http://norcalbma.org/events/monthly-meeting-january-2017/ If you miss this opportunity, invite us in for a workshop. See CX Performance Management. The workshop series.
Evidence of the shift to delivering customer value
A shift in tools: Customer Experience integration tools and methods to measure value from the customer point of view are just coming to market. We have three of them. Ours quantify and strengthen relationships, tied to business results.
- Value Creation Mapping (VCM) methodology described above maps the Customer Experience. For more ask for our paper “Relationship: The Foundation of Value.” Go to Be In Touch.
- Customer Success Alignment is a self-diagnostic model for a reality check to ensure that your company is organized to really create value for customers. See What’s your Customer Success Score? Take our FREE quiz. Now!
- And our new game-changing Customer Relationship Value (CRV) Score, which is a killer app for Customer Experience integration and real-time tracking. The CRV Score is a Key Performance Indicator that shows where to focus for more profit: What is needed to increase success? Is a relationship at risk? Are costs out of line? See Customer Relationship Value game changer…our real-time CRV Score!
It’s time to think differently about customer value. Customer value is mutual—of value to you and of value to the customer. See 10 innovative ways to optimize customer value.
A shift in traditional metrics: A 2014 Corporate Executive Board (CEB) report showed that delighting a customer doesn’t build loyalty, but reducing the amount of work customers must do to get their problem solved reduces disloyalty by a factor of four times. More evidence for the shift to measuring a CES (Customer Effort Score) instead of using NPS or Csat ubiquitously whether appropriate for the situation or not.
In a recent webinar Confirmit put traditional Customer Experience metrics in perspective. Generally, use CES for transactional; use NPS for relationship; and use Csat for episodic.
But until now, how customer effort is measured has been limited. Practitioners have relied on either a 0-to-5 or 0- to-10-point scale to measure CES. Good to know, but not good enough to know what to do to fix any problems, like our Value Creation Mapping (VCM) approach delivers.
A shift in marketing roles: A series of FREE reports on the CMO role from the CMO Council documents a shift from just driving brand and campaigns to a focus on the Customer Experience, business results, and what customer value.
1.“Do we know the customer journey beyond the actual purchase?…Instead of asking what the next great product, promotion or white paper will be to thrill and amaze our customer and prospects, we instead should ask what our customer defines as value and determine whether this action is delivering that value in a way that the customer wants.” Question and comment from CMO Council’s Strategy 2017 Are you asking the right questions to get customer experience right? https://cmocouncil.org/authority-leadership/reports/321.
2. “Today’s CMOs have to accept the role of both a growth and customer experience champion. Being the growth champion means making sure that you really understand the market you are playing in and how you win,” Martyn Etherington CMO and Senior Vice President of Business Operations Cisco Jasper as quoted in CMO Council’s The CMO Shift to Gaining Business Lift: Executive Perspectives https://cmocouncil.org/authority-leadership/reports/320.
3. “Are CMOs truly stepping into the role of growth-and-business-driver, or are they still simply waiting back, content to be the brand ombudsman?” Two of four key findings:
- “The best of intentions to advance the growth agenda are often being sidetracked by a legacy of brand-centric strategies and campaign-focused actions, calling into question the realities of the CMO truly becoming the primary growth driver,
- “The CMO has the opportunity, if not the requirement, to become the primary driver and orchestrator of the customer experience. However, CMOs are bogged down in operational and functional tasks…leaving less time to collaborate with the C-suite and advance the digital transformation needed to meet the expectations of tomorrow’s customer,”
question and key findings from the CMO Council’s The CMO Shift to Gaining Business Lift https://cmocouncil.org/authority-leadership/reports/317/download.
Take a look at Figure 4 on page 11 in their report for a list of critical moments in the customer journey. The top three are what you’d expect from a brand-focused marketer. The GOOD news is there are 17 more moments on the list that get closer to an integrated Customer Experience.
As the report authors note: “While study after study…demonstrates that customers most often evaluate the robustness and value of the Customer Experience throughout the totality of their journey—especially at critical points of sale, activation/installation and use—some CMOs taking part in this study seem to be largely focused on pre-sale and discovery engagements. But just as many CMOs more fully embrace the connection between experience and growth, there are signs that they are ready to redefine experience across all critical moments.”
Customer Experience Wisdom: The Customer Journey doesn’t stop at the marketing silo’s edge. Value for the customer is delivered cross-functionally in an integrated customer experience across the customer lifecycle.
Questions: Do you have the tools you need to measure and improve upon what the customer experiences–both pre- and post-sale–as their relationship develops with your company? To help your organization “gain business lift?” And deliver business value to both your executives and your customers? Want to get started right now? Then, Be In Touch.