Done well, it will increase customer satisfaction, loyalty, advocacy and lifetime value.
So, when RRD commissioned research to discover what’s driving investment in CXM, it was no great surprise that many business leaders said ‘customer dissatisfaction’.
What was perhaps surprising was that only 15% said so… and that by far the biggest reason for CXM investment was pressure from competitors. In fact, more than one-in-three (35%) agreed.
Competition, of course, isn’t new. It’s been the catalyst for product development, overhead reduction and marketing strategy for hundreds of years. Today, however, there’s a new twist to competition, and it’s being fuelled by consumers.
Amid the commoditisation and globalisation of virtually every product and service in the marketplace, today’s consumers are better informed, more connected and, ultimately, more demanding than ever before.
These super-savvy consumers are creating opportunities for new market entrants; digital disrupters and agile specialists who are revolutionising supply chains with innovative, low-cost and instantly scalable business models.
Even established brands aren’t ‘safe’ from this new breed of competitors, with the loyalty of customers no longer guaranteed.
And it’s all moving quickly. Companies aren’t looking at the potential impact of long-term technology advances or global economic trends… they’re asking if they’ll still be competitive in a couple of years’ time.
So, what can be done?
Traditionally, the answer has been to improve customer service. Perhaps our 15% still believe so.
However, today it’s much more than recognising the central importance of the customer; it’s about providing a positive customer ‘experience’ at every stage and every level of interaction − to deliver outstanding and truly differentiated, omni-channel customer engagement that builds brand loyalty, improves retention and strengthens barriers to market entry.
Little wonder then, that Customer Experience Management is one of the key strategic tools for businesses today.
Discover more of the key findings from our research, and find out how some of the most successful customer-centric enterprises are rising to the challenges of Customer Experience Management. Download our whitepaper, The Rise of Customer Experience Management.