The real “X Factor”

What is the X Factor in building a profitable brand? This post argues that it is the Customer eXperience and demonstrates why organisations have to deliver a consistent and compelling customer experience across each and every touchpoint.

Advertisements

Forget your TV. The real X Factor will allow you to perform better than your competitors and achieve long term results to delight your shareholders and stakeholders.

The X Factor is on most CEO’s agenda’s yet it often alludes many organisations.

The X factor is widely known, yet rarely understood.

So what is this corporate X Factor?

The X factor is eXperience. The Customer Experience or Cx as it is often abbreviated to.

It includes the User eXperience (or Ux), whoever the “user” might be, as a user could be a customer, a partner, an employee, a Supplier. It all adds up to a perception gained by an individual or collectively by an organisation which will affect the relationship between both parties.

Every interaction between an organisation and its Stakeholders is a “moment of truth” where these perceptions, either positive or negative, are gained. The sum of these “moments of truth” lead to an overall “customer experience” that can affect the economic relationship. Let me use an example of how this might apply to Financial Services.

It used to be that upon getting your first job, you set up a Bank account (often with your parents bank) and you banked with this organisation for life. When you came to buy your first house, you might visit your local Manager who would interview you and then arrange a loan. How times have changed. These days, Banking is highly competitive and has moved to touch every point of our lives. It is easy to change banks, or have many banks. Some specialise in certain types of products but they all want our hard earned cash. The transactional cost of changing banks has lowered so that customer loyalty is far less than it was in previous generations. Therefore the retention of customers has become more important than acquiring customers to most banking organisations. So how does a bank retain your business? It can make its products more attractive and tailored, but this comes at a high price to the bank and has not always been a unique differentiator. Therefore banks have gradually come to realise that by improving every touchpoint with their customer, it not only makes the bank easier and convenient to do business with but also improves our perception of their brand.

The Customer Experience must be considered across every single touchpoint, across every single channel and needs to be consistent for every single customer. Therefore if a Bank has great, customer centric staff in every branch, this is clearly advantageous but a Telephone Banking service which uses a poorly designed Interactive Voice Recognition (IVR) menu, long wait times or is not 24/7 might negate all the good work done in the branches. Similarly, a great Mobile App which allows you to do your general banking might be negated by a difficult to use Online Banking web site.

It is true that different customer segments are likely to use different channels, depending upon their needs but few Banking customers will stick to one channel. Therefore every single touchpoint must be looked at and tested from a customers perspective to ensure that they receive a positive and consistent experience. The loyalty generated will drive longer term financial reward, especially in a Social world where good and bad experiences can be shared and communicated globally in seconds.

I have used Banking as an example but the laws of Customer Experience are universal. Create great and lasting Customer Experiences and the rewards will repay the effort over and over.

Author: Nick Davey

Evangelist, Strategist, Leader, Implementor, Author, Speaker and all round nice guy, Nick has built his entire career on improving the management of customers both from a customers perspective "looking in" and from within an organisation "looking out". You might call it CRM. Customer Relationship Management or, as Nick often says, Constantly Realigning Misconceptions. Nick reiterates that his comments are his own personal comments and do not necessarily reflect the opinions, strategy or views of any previous employer or customer.. He is delighted to be impartial and able to share ideas with open minded and collaborative professionals around the world. Outside of his passion for CRM, Nick pursues other less demanding passions such as Scuba Diving, Native Wildlife (e.g Wallaby) Rescue and Rehabilitation, Amateur Flying and watching as much Sport as his long suffering wife will permit.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s