“Customer Experience Mapping and Application”.ppt

“Customer Experience….. Mapping and Measuring” Prepared for CCA Seminar 27th October 2005 Retention Through Experience As the cost of acquiring customers rises organisations are investing in retention Index of Costs Retention 100 Winback 140 Acquisition 240 [source QCI/WPP customer management research 2003] Key Retention Drivers Brand Traditional Marketing Proposition Elements Experience Contact Service Customer Lifecycles suggest increasing customer interactions/contacts and more demanding customers National Consumer Council reported an increase in complaints from consumers in 2003 of 24% over the past 5 years Service Impact Customer Experience through contact influences customer’s perception of the brand and is a key component of brand loyalty and can often override traditional/other marketing communication, for example recent outsourcing of customer service…… Indian Call Centres “you can’t subcontract your relationships with customers” – Richard Pym CEO Alliance Leicester Customer Experience Impacts on Retention “A Good Experience is based on strong relationships between dialogue, satisfaction and these drive customer retention” – Maggie Evans marketing director iSKY Europe The Customer’s experience is an area where the successful businesses are very good in this respect…and the not so successful are very poor (First Direct Vs PC World) Most companies have fundamental gaps in their customer lifecycle model Measurement and Improvement Key question is how do you know if you’re delivering a good experience (customer satisfaction scores?) and how do you know where to improve? Organisations tend to measure Experience by measuring Customer Satisfaction Only measures single activity in isolation Ignores the context Organisations therefore traditionally tend to look for improvement in this area in one of two ways Significant investment in CRM IT systems (EdF; ESB; Britannic) Re-engine