Customer Experience and Marketing - the Challenge

A customer experiences a company’s performance in a cycle of events and some sample Key Performance Indicators (KPI):

1.    First, the prospect sees or hears a performance promise about what the company can do for them, including the cost. The prospect gets the message. In Telemarketing the KPI may be the Net Contact Rate, in Online Marketing it would be Unique Visitors (web) or Clicks (cost per click campaigns).

2.    Then, the customer tries to make first contact with the company. At this critical stage, companies often fail to achieve vital service levels. Samples for KPI are Service Level (inbound calls) or Response Rate (mailing or email campaigns).

3.    If the customer reaches the company and if he/she is convinced by the agent – if the agent meets the customer’s expectations – the latter will purchase or rent the company’s product or service. KPI may be the sales conversion rate, heavily dependent on the triangle of people-process-technology.

4.    In the course of the relationship with the company, the customer experiences the delivered performance. She/he compares it with the promised performance they heard in the first place. See following options 5. to 7.

5.    If there is a match between promised and delivered performance, chances are increased that the customer stays loyal. With adequate cross-selling and up-selling processes, technologies and skills in place, he/she may buy even more. All this is influenced by competitor’s performance and dynamic (changing) customer expectations.

6.    If there is no match and under-performance, the customer will complain, openly or quietly. Quiet “complainers” usually leave, and can be made visible with adequate customer surveys, retention and win back processes with according KPI. If the complaint is made and resolved, the customer usually carries on, buying even more. But many companies fail here, increasing another KPI, the Churn Rate significantly.

7.    If there is over-performance, exceeding customers’ expectations, customers will start to recommend the company to new customers. This creates a tail effect, which can be enhanced dramatically taking the right actions at the right time to promote recommendations. This adds new prospects to step 1.

This table of events is simplified for a better overview.

In reality there are many loops and overlaps. But the overall picture is always the same. Read more about how to meet these Customer Experience and Marketing challenges.