How to Deliver a Superior Customer Experience

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How to Approach Customer Experience Management
An Overview of Patricia Seybold Group's Recommended Game Plan

What's the goal of customer experience management? If you're in charge of, or involved in, managing the customer experience for one or more groups of customers, here's your mission as we see it: Your customer experience mission is to delight individual customers by designing ideal experiences for particular audiences, segments, or groups of customers--people who care about the same things and who have the same needs and desired outcomes. You want to optimize the quality of the experience you offer to each group of customers so that they perceive and appreciate the value of your brand. At the same time, you want to deliver the most appropriate level of service, based on the customer's context, to please him or her, without overspending on the things that don't matter to the customer. By understanding, anticipating and meeting customers' needs, you increase customer loyalty while lowering your costs to serve.

In this report, we explain why customer experience matters. We offer our definition of customer experience management. We describe our approach to customer experience management. We invite you to compare our customer outcome-based and scenario-focused approach with what you are currently doing to manage, monitor, and improve the experience your customers have with your organization.

Why is it important?

Meeting the Customer Experience Challenge
How well does your company currently walk the talk in making it easy for your customers to do business with you? What's your current reality? Here's a description of how many executives feel they're doing in meeting their customers' needs. How does a company that delivers a great customer experience look, feel and behave? Here's the vision that our clients have of what they're attempting to achieve as they strive to improve the Quality of the Customer ExperienceSM they deliver. How do you get from your current reality to your vision of the ideal "outside-in" company? This is the first in a series of reports that tells you how to redesign your organization from the outside in.

How do you design great customer experiences?

Let Customers Co-Design Your Customer-Critical Initiatives
What's the best way to gather customer requirements? Invite customers to co-design their ideal processes with your cross-functional team. Design your requirements to meet your customers' future requirements. Learn why and when to apply Customer Scenario(R) Mapping to your own company's initiatives and projects. Shave months off your projects while making your organization more customer adaptive. Gain benefits from immediate quick hits.
How to Approach Customer Experience Management
What's the best approach to use for customer experience management? Patricia Seybold defines customer experience management as the practice of designing, delivering and continuously improving the manner and ease with which your chosen customers interact with your brand(s) in order to achieve their desired outcomes. In this report, you'll learn how the Patricia Seybold Group approaches customer experience management. What dimensions of customer experience should you be managing? What experiences should you be monitoring and improving? How should you measure results?

How do you measure and monitor for success?

Design Your Quality of Customer Experience (QCE) Scorecard
What are the best practices in the design of customer experience scorecards? Best-practices leaders don't content themselves with customer satisfaction and loyalty surveys-(How would you rate this experience? Would you recommend X to a friend or colleague?) They also identify a small set of operational customer metrics to monitor and continuously improve. These customer-centric metrics form the basis for the customer experience Key Performance Indicators (KPIs) that are used to motivate and focus employees. By measuring the right stuff-what matters most to customers-these companies continually improve the Quality of the Customer Experience(SM) they deliver, reaping rewards in higher customer satisfaction, greater customer loyalty, a larger number of customers and more profits per customer. Learn the 8 Steps to create your own QCE Scorecard.
Identifying Operational Customer Experience Metrics
Do you know what your customers really care about the most? Can you monitor and improve the things that matter most to your customers?

Many organizations are now refining the ways in which they identify and monitor the customer-critical issues that will dissatisfy and/or delight customers. These companies are establishing and/or refining operational customer experience metrics.

This report provides an overview of operational customer experience metrics: What are they? Why do they matter? How do other companies identify and monitor them? How might you discover your customers' metrics?

We also provide a "how to." We describe how your customers can help you identify the moments of truth and customer metrics they care about. We'll show you how to turn customers' metrics into operational performance goals you can use to monitor and improve your ability to meet customers' moments of truth.

What are best practices in customer experience management?

What Are Customer Experience Best Practices?
The advantage of being a "subject matter expert" in a benchmarking study is that you gain first-hand access to detailed questionnaires and site visits to best practices companies. After pouring over all the data collected during the 5 month Benchmarking Collaborative in Managing the Total Customer Experience conducted by the American Productivity and Quality Council (AQPC) between October 2004 and April 2005, Patricia Seybold distilled a set of "findings" from the data. Here are the practices that seem to differentiate the "best practitioners" from the rest of the pack when it comes to delivering, and reaping the benefits from delivering a good total customer experience across touchpoints, channels, and throughout the customer lifecycle. We include a Customer Experience Report Card you can use to rate yourselves.
Establishing and Nurturing a Customer-Centric Culture
The Quality of the Customer Experience(SM) your company delivers is the biggest competitive barrier you can erect. It takes a long time for competitors to emulate a great customer experience. Why? Because having a customer-centric culture is a prerequisite for delivering a great customer experience. It takes years to build a corporate culture. Here are three different approaches.

In this report, we look more deeply at one of the best practices that truly differentiates the leaders from the laggards in customer experience delivery. We describe the ways in which three companies-Caterpillar Financial Services, Harrah's Entertainment, and Lands' End-have established and nurtured their own customercentric cultures.

What organizational structure do you need?

SVP of Cross-Channel Customer Experience (or Equivalent)
What's the one role that makes the most difference in a company's ability to "make it easy for your customers to do business with you"? An SVP of customer experience (or equivalent). You need a highly placed and highly respected pragmatic visionary with clout who can improve customers' end-to-end experience in dealing across channels, touchpoints, and functional silos. Where do you find such a person? Look inside your organization. And look for someone who has a deep understanding of your customers, someone who is a well-respected "old-timer" with your company, and someone who is recognized as a successful "go to" person-someone who gets things done and executes flawlessly.
VP of Customer Intelligence
Who should be managing your customer information? What roles and responsibilities should you ideally have in order to do a great job with your customer information? We're not talking about technical roles, but business roles--these are the job responsibilities that you'll want to be sure are covered if you really want to have a customer-centric organization. We recommend that you combine oversight of operational customer information with oversight of customer analytics. By bringing these two teams into a single organization, you can take better advantage of real-time analytics--using what you learn from customers to take appropriate actions in near real time. There's a major twist in our view of your customer intelligence organization: The first priority of your VP of customer intelligence should be to act as the custodian for the information that your customers care about. Start by ensuring that your customers have access to all the information they want about their profiles, their accounts, their transactions, and their interactions. Then worry about what your marketing and sales organizations want to know about customers. And make sure that customer privacy, customer research, and campaign management coordination are covered
Customer (and Partner) Segment Advocates
Whose job is it to understand and to lobby for the needs and requirements of the customers in your most strategic customer segments? One key to success in becoming a customer-centric organization is to have strong customer and partner advocates with clout. Here are some role models and suggested responsibilities that may help you build or refine these roles within your company. We recommend that you combine customer segment advocates and partner segment advocates in a single organization. These advocates should drive and monitor your firm's customer experience priorities. They should be measured on the Quality of the Customer Experience delivered and on the profitability and growth of the segment(s) they represent.
Sr. IT Architect for Cross-Channel Customer Experience
In order to deliver a great cross-channel experience to customers and partners, you'll need to have a seasoned IT architect who is responsible for designing and evolving your application Architecture, services, and middleware to be customer adaptive. We call this role a senior IT architect for cross-channel customer experience. He or she should be "tied at the hip" to your SVP of customer experience and should lead a small team of senior architects. This Architecture team should be leading the transformation of all of your customer-impacting applications, databases, platforms, and middleware to ensure that customers' current and future needs are met. This is the Architecture team that will redesign much of your IT application infrastructure from the outside in.

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