CX Tribe is the best Customer Experience insights, case studies and statistics. Human curated. Delivered weekly. Join more than 5,000 other CX Professionals and subscribe.
“Ideas are a commodity. Execution of them is not.”
Michael Dell, Founder of Dell
Okay, more doing coming up.
The Business Value of Building a Best-In-Class VoC Program
Aberdeen does some reasonable research and this is quite a nice study on the RoI of VoC programs. Although a few years old now (2015) the results are still 100% applicable.[The purest in me always has issues with how Aberdeen selects the Best-In-Class companies and compares them to “All others” but we’ll ignore that for now.]
Download the entire paper for the full story but, for me, this is the critical chart. It shows that the value from VoC is split between getting new customers, keeping them and, importantly, reducing the cost to serve.
Lower cost to serve is often ignored when calculating the value of VoC programs but it can be substantial and is often easier to tie back to the VoC program than improved sales.
Increases in sales can have many parents: sales, marketing, competitor changes. In contrast, lower cost to serve can almost always be tied directly to updated processes and systems.
So, remember to consider cost to serve improvements in your RoI calculations.
Is Amazon Coming for Your Market?
This piece about Amazon entering the Insurance market sparked a series of questions we should all ask about our market:
- What would Amazon do if it entered my market?
- What assumptions would they tear up?
- How would our customers react?
- How would we compete?
For your next major strategy discussion maybe start with these questions.
Then, of course, don’t wait for them to enter. Get on and start rebuilding yourself.
Customer Delight is Overrated in “Mundane” Industries
This paper examines the drivers of customer loyalty in utilitarian frequent use retail. “Supermarkets” to you and me.
Rather than delighting customers with surprising and entertaining experiences, the managerial recommendation from this research is to provide consistent and reliable (trusted) encounters. Organisations should also react to competitors’ price changes to ensure they provide a reliable level of value.
In these markets it is by focusing on the hygiene factors and delivering them consistently that companies generate customer loyalty.
In CX this goes against quite a lot of the received wisdom.
Delighting customers is often touted as the secret to success but in more mundane industries, and some that are not, reliability and consistency is what customers really want.