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December 2014 | ©Nicolette Wuring | nicolette at wuring.nl 1 Experience 3.0: Why so many struggle to ‘walk the customer talk’ It’s no longer about what the customer thinks about a company or a brand, but what the customer feels. Where product and price relate to the rational, the experience hits straight in the heart of the emotion. Increasingly, it is the customer experience that sets a company apart from the rest. That’s what makes a brand human, generates preference and loyalty. Many companies are struggling with this. Lately, several sessions with executive and operational marketers, made me realize there are three disconnects at the core of this struggle. 1. Leadership in many organizations is not aware (enough) of the organizational impact of the ‘Age of the Customer’. 2. The misinterpretation of the Net Promoter Score (NPS) as a KPI that can be used at all levels. 3. Marketers, who lack the operational experience and competencies to make the connection with the customer facing side of the business, have claimed the domain of customer experience. The issues arising from the first disconnect is that leadership struggles with securing ‘customer experience’ in the organizational structure in a way that it enables the organization to make the desired impact, causing a disconnect between strategic and operational goals, both from an operational (efficiency) as well as a revenue perspective. The Net Promoter Score is the proverbial tip of the iceberg (see Figure). A loyal customer can be dissatisfied with an incident, be it a product, customer service or a specific event, but still be a promoter. It takes a number of incidents (on average at least three) before dissatisfaction turns a promoter into a passive, or worse, a detractor. Unfortunately, leadership has taken to treating NPS as a ‘silver bullet’, the ‘beall and endall’, causing narrowmindedness, and people down the line to create things like tNPS (transactional NPS).

Customer Experience 3.0: Why So Many Struggle to "Walk the Customer Talk"

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Page 1: Customer Experience 3.0: Why So Many Struggle to "Walk the Customer Talk"

December  2014  |  ©Nicolette  Wuring  |  nicolette  -­‐at-­‐  wuring.nl   1  

Experience  3.0:  Why  so  many  struggle  to  

‘walk  the  -­‐customer-­‐  talk’    

It’s   no   longer   about  what   the   customer  thinks  about   a   company  or   a   brand,   but  what  

the  customer  feels.  Where  product  and  price  relate  to  the  rational,  the  experience  hits  

straight  in  the  heart  of  the  emotion.  Increasingly,  it  is  the  customer  experience  that  sets  

a   company   apart   from   the   rest.   That’s   what   makes   a   brand   human,   generates  

preference  and  loyalty.  

Many   companies   are   struggling   with   this.   Lately,   several   sessions   with   executive   and  

operational  marketers,  made  me  realize  there  are  three  disconnects  at  the  core  of  this  struggle.  

1. Leadership   in   many   organizations   is   not   aware   (enough)   of   the   organizational  impact  of  the  ‘Age  of  the  Customer’.  

2. The  misinterpretation  of  the  Net  Promoter  Score  (NPS)  as  a  KPI  that  can  be  used  at  all  levels.  

3. Marketers,  who   lack   the  operational   experience   and   competencies   to  make   the  

connection   with   the   customer   facing   side   of   the   business,   have   claimed   the  domain  of  customer  experience.  

 

The   issues   arising   from   the   first   disconnect   is   that   leadership   struggles   with   securing  

‘customer   experience’   in   the   organizational   structure   in   a   way   that   it   enables   the  

organization   to  make   the   desired   impact,   causing   a   disconnect   between   strategic   and  operational  goals,  both  from  an  operational  (efficiency)  as  well  as  a  revenue  perspective.  

The  Net  Promoter  Score  is  the  proverbial  tip  of  the  iceberg  (see  Figure).  A  loyal  customer  

can  be  dissatisfied  with  an  incident,  be  it  a  product,  customer  service  or  a  specific  event,  

but  still  be  a  promoter.  It  takes  a  number  of  incidents  (on  average  at  least  three)  before  dissatisfaction  turns  a  promoter  into  a  passive,  or  worse,  a  detractor.  

Unfortunately,   leadership  has   taken   to   treating  NPS   as   a   ‘silver   bullet’,   the   ‘be-­‐all   and  

end-­‐all’,   causing   narrow-­‐mindedness,   and   people   down   the   line   to   create   things   like  tNPS  (transactional  NPS).  

Page 2: Customer Experience 3.0: Why So Many Struggle to "Walk the Customer Talk"

December  2014  |  ©Nicolette  Wuring  |  nicolette  -­‐at-­‐  wuring.nl   2  

NPS   is   especially   useful   to  measure   the   ‘total   relationship’   (see  A,   figure).  However,   it  

doesn’t  give  you  the  kind  of  actionable  feedback  you  need  at  the  levels  B,  C  and  D  (see  

figure).  In  other  words,  is  tells  you  how  a  customer  feels  about  your  brand,  but  doesn’t  

tell   you   how   he   perceives   the   separate   denominators   that   create   the   total   package.  

Neither  does   it   give  you  a  handle  on  what   specifically  you  need   to  change  or   improve  

where  in  your  organization  to  improve  your  customers’  experience,  and  balance  it  with  

your   operational   efficiency,   or   things   like   Customer   Lifetime   Value   (CLV),   Recency,  Frequency,  Monetary  value  (RFM),  Share  of  Wallet  (SoW),  etc.  

And   that   brings   me   to   the   third   disconnect.   Marketers   have   claimed   ‘customer  

experience’   as   their   domain.   It’s   a  misunderstanding   to   think   that   planting   a   team   of  

analysts  who  translate  all  digitally  available  information  from  both  internal  and  external  

(for   instance   social   media)   sources   is   sufficient.   And   a   team   of   ‘customer   experience  

experts’,  marketers,  who  compile   ‘customer   journey  maps’,   telling  the  customer  facing  

side  of  the  business  what  to  think,  feel,  say  and  do  at  any  given  moment  in  the  process.  

Measuring  things  like  ‘tNPS’  at  the  levels  B  and  C  (see  Figure)  without  a  holistic  view  of  

all   constituent   parts,   and  without   involving   operational   people,   and/or   looking   at   the  KPI’s  the  operational  side  of  the  organization  is  measured  by  (D;  see  Figure).  

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December  2014  |  ©Nicolette  Wuring  |  nicolette  -­‐at-­‐  wuring.nl   3  

One   of   the   key   findings   in   Accenture’s   ‘Global   Consumer   Pulse   Report   2013’   is   that  

companies  promising  one  thing,  but  delivering  another  globally  frustrates  84  (!)  percent  of  customers.  

Key  to  ‘walking  the  -­‐customer-­‐  talk’  is  consistency  between  ‘who  you  are’  (DNA/culture;  

vision,   mission,   values)   and   ‘who   you   say   you   are’   (internal   and   external  

communication).   This   requires   company-­‐wide   alignment   AND  deploying   all   experience  

and   competencies   that   exist   within   the   organization.   Marketers   only   oversee   a   few  

pieces   of   that   puzzle.   The   true   innovation   power,   co-­‐creation   power,   and   realization  

power   where   it   comes   to   ‘walking   the   -­‐customer-­‐   talk’   requires   bottom-­‐up   (and   top-­‐

down)  engagement  and  involvement  of  the  customer  facing  side  of  the  organization,  the  people  who  are  dealing  with  customers  on  a  daily  basis.  

At   the   end   of   the   day,   it   shouldn’t   be   about   who   successfully   claims   the   domain  

‘customer   experience’,   but   about   how   can   you   lign   up   the   constituent   parts   of   the  

organization  the  best  way,  both  from  a  customer  and  an  internal  perspective  (measuring  the  right  things  at  the  right  levels),  to  serve  your  customers.  

December  2014  |  ©Nicolette  Wuring  |  nicolette  -­‐at-­‐  wuring.nl