Return on experience

Customer centricity has been a common strategy for many companies. It is an approach of offering a great customer experience from the awareness stage, through the actual provision of goods or services, and up until the post-purchase process.

Providing positive customer experience has been the foremost insight in PwC’s 10th Global Annual Consumer Insights Survey, which includes respondents from the Philippines. The survey showed that apart from the traditional return on investment (ROI), which has been a widely used measure to determine the success of an organization, there is a clamor to introduce another metric regardless of industry type, one with a “laser focus” on customer experience – return on experience (ROX).

How can a company improve its ROX? Six concrete actions were discussed in the survey to help companies improve its ROX: 1) fusing consumer experience and employee experience, 2) conveying shared values to engage customers in meaningful ways, 3) building on discrete moments that earn loyalty over time, 4) understanding the customers through their behaviors, 5) treating consumers’ data with respect, and 6) winning over customers on premise by understanding what they are trying to experience and making it easier for them to accomplish their goals through ease of navigation, breadth, quality of selection, price, or exclusivity. Let’s take a deeper look at three of those action points:

Fuse consumer experience and employee experience

Better employee experience will lead to better consumer experience. Employees, whether of an online or a physical shop, still interact with customers. This means employees are in a position to shape the customer experience, provide assistance at the point of purchase, set the emotional tone, and make the difference between getting consumers’ affections and leaving them cold. When respondents were asked on what would improve their in-store shopping experience, access to sales associates with a deep knowledge of product range ranked second at 34 percent.

Employees perceive that a great experience begins with a great culture. However, there seems to be a gap in the way that leaders and employees view their organization’s culture, as revealed in the latest Global Culture survey by PwC. 

To narrow and ultimately close the gap in culture perspective, companies should first identify the traits unique to the company and resonate with employees. Then identify behaviors that should be cultivated within the organization to align with the traits and company objectives.

Harnessing and maintaining positive emotional energy within an organization are critical in achieving cultural change. This is the same energy that will motivate employees to go above their responsibilities to work towards the objectives of their organization, sometimes even withstanding incentives such as pay and benefits. When employees are engaged and satisfied, they turn out to be the greatest brand ambassadors of a company.

Understand customers

Having an understanding of customer behaviors can reveal opportunities to interact in a more meaningful way, such as helping marketers devise personalized offers and engaging people when they are ready to buy.

Considering customer behaviors can help companies see customers in a different light, as compared to segmentation by demographics alone. For instance, there are consumers considered as “Digital first-mover” or those more aggressive in adopting the latest digital trends. In terms of shopping activity, digital financial activities are the norm with more than 90 percent having undertaken online financial activities in the past 12 months, and more than 75 percent own or plan to own all types of smart devices. This type of consumers can be a good target for latest smart technology and devices and even for investment in bitcoin currencies.

On the other hand, there are still consumers who are considered as “Reluctant digitist” who still favor traditional buying methods. They are less interested in online shopping or do not use technology at all for their purchases. For these consumers, it is still important to maintain the traditional touchpoints with sales associates.

With the different behavioral and attitudinal attributes of consumers, companies can bring together commercial investments to deliver seamless, end-to-end experiences tailored to a specific context.

Treat customer’s data with respect

Customers are demanding greater control over their personal data and greater transparency on what businesses are collecting, and how they are sharing and using them. A lesson can be learned from startups, which entice customers to share data by enlisting them as co-developers of pilot programs for products and services where they have vested interest.

Companies can fully involve cybersecurity and privacy personnel in digital transformation projects from the start. This would include establishing policies governing access to IT assets and data, implementing data governance programs including data protection, and managing risks for the whole data life cycle. Data is a powerful means for companies to fully tailor the consumer experience, and consumers would be willing to share more data if they are comfortable that these are being handled discreetly and securely.

The journey to being a truly customer-centric company can take some time, but even the slightest changes to policies and procedures can have a significant impact for both employees and customers. When companies put customers first and at the heart of everything they do, this will yield satisfaction, loyalty, and growth – this is the return on experience.