Customer Experience Differentiation

In a McKinsey research survey of senior executives, 90 percent of respondents confirmed that customer experience is one of the organization’s top priorities. It’s a priority because the stakes are so high and competition is increasing. Enhanced customer expectations are forcing organizations while reducing cost and complexity for customers interacting with the organization. An interesting research insight is that every 10% increase in customer satisfaction can lead to a 2%-3% increase in revenue…

By analyzing the relationship between customer satisfaction and operational factors, the McKinsey survey showed that in order to enhance customer experience, there are 2 key factors that organizations can use as a guide:

1. Focus on a few things that matter to customers

The research showed some things matter a lot in terms of customer experience. The three that stand out and that are common to most organizations are:

-transparency of pricing and fees
-ease of communication
-quality of the first interaction

2. Ease of interaction

Busy customers value convenience above all. Reducing complexity and the time it takes for a customer to get information, to conduct a transaction, to make a purchase has a significant impact on customer satisfaction. Cutting down the time it takes to complete an individual journey, such as applying for an account, by making it easier and simpler has a deep effect on customer satisfaction.

An important element of an organization’s strategy to address this therefore is digitizing the customer interaction to cut down the time.