Managers 'placing emphasis on customer experience management'
A new study has found that more managers are looking to customer experience management (CEM) in order to protect sales.
During the economic downturn, business leaders are more conscious of retaining customers and research by Vovici, which studies enterprise feedback management, questioned 200 organisations to find out how.
The Vovici/CGA Customer Experience IQ study found that 47 per cent of respondents said CEM was important to them in 2008, but in 2009 this number increased to 63 per cent.
This is evidence that the recession has driven many organisations to focus more closely on understanding how customers are interacting with them, and that management skills need to be developed.
"It's not sufficient simply to have a CEM strategy in place," said Jeffrey Henning, chief strategy officer of Vovici and author of the Customer Experience IQ study. "Organisations must have buy-in from senior management, which in turn promotes acceptance and communication across the entire organisation."
He added that a truly successful programme requires a company-wide commitment to making customer loyalty an integral part of an organisation's culture.
The news comes a week after UK retail sales values rose 1.4 per cent on a like-for-like basis and 3.2 per cent on a total basis, from June 2008.
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Have you done this study in the US? I think the UK is more familiar with these concepts (i.e. CEM) than most US Companies. I certainly agree with the need for executive buy-in. I have also found that companies need a good understanding of process in order to have a successful implementation. Thanks for the post.
Couldn't agree more. When you look at the optimal way of growing business it is to increase retention rate and portfolio of services being provided to existing customers.
I agree that the strategy has to be organisation wide, there's no point in one or two functions trying to retain customers if others are not committed to that same strategic goal.
We have also seen an increase in senior level conversations about retention and servicing strategies but many of these focus on the process and systems -the hard stuff but when you talk to customers about what gets them mad - it's the softer stuff - the conversation, the fact that they weren't listened to or they didn't understand. In our efforts to save money, we are in danger of sacrificing the personal contact and the needs of the customer. We provide scripts and systems that are so complex that the service person doesn't have time to actually listen to what the customer says. Here's to the good old days of training people to care and think - maybe one of the great things about the recession is that it is getting people talking again.
Caroline, I completely and wholeheartedly agree with you regarding scripts and robotic responses. There's nothing worse than speaking to someone with a product or service knowledge equal to the depth of a puddle.
We should be investing in training staff to understand the business they're operating in, taking time to understand the business their customers are in and using effective questioning skills to ascertain how we can meet their needs with our products or services.
I'd like to see a scripted response which can capture all of that.
Colin, I don't think you can script a response to do everything you want, but you could provide bullet points that people can use to help. Scripting only works for basic transactions or providing information and is not really designed to be interactive.
The customer interaction cycle is vital if you want to get it right.
It all starts with the need to first 'listen' to what the customer needs. Too many times people jump into resolution mode, offering to help solve the problem without fully understanding it first. More time spent on the understanding stage - including clarifying and checking for understanding - will result in a much better 'helping' stage, much better satisfaction and thus more 'keeping'.
Try using RUOK : (abridged version)
Readiness: To take the call etc - how many times are you aware people are only half listening to you or you hear the end of a conversation as they pick up the phone?
Understanding: Make sure you fully understand the customers needs – probe and check for understanding before proceeding – e.g. So what you’re saying is.........
Offer Help: Solution mode – what can you do to help/put things right. Explain any choices available and how they would meet the need. Then agree what action to take and timescale etc. Confirm back in summary form.
Keeping: Thank customer, ask if any thing else you can do. Retain ownership and check the desired service/solution is dealt with and then go back to customer and check they are happy.