Many firms believe they are customer-centric and focused on improving their customer experience, but what measurements do they have in place to be sure? Industry benchmarks and best practices vary, and the customer landscape is constantly shifting, so success in this area can feel like a moving target. While some of organizations are realizing results from their customer experience efforts, many do not achieve the desired improvements in customer loyalty and profitability. Why?
West Monroe Partners’ 2013 Customer Insights & Customer Experience Diagnostic Survey provides answers to these and many more compelling questions. This survey of cross-industry senior executives assesses key capabilities in leveraging data and developing analytic customer insights, and the ability to use those insights to develop a seamless, effortless customer experience.
The survey was distributed to senior marketing and customer-related executives across multiple industries and responses were compiled from over 115 respondents. The primary focus of the survey was to gauge the degree to which companies are using customer data and analytics to develop and operationalize insights to provide a seamless, multi-channel, and effortless customer experience in order to gain competitive differentiation.
The survey findings indicate that a significant amount of customer data is collected by firms in-house, but the data is collected inconsistently, may not be trusted, and may not be leveraged to generate true insights that assess customers’ needs, values, and propensities. One of the least advanced areas is leveraging customer insights to improve the overall customer experience on a seamless, consistent, and multi-channel basis. Of course, no customer experience initiative will succeed without appropriate executive commitment and leadership. However, when respondents were asked who leads their customer experience initiative, the most popular response was “nobody.” A key indicator as to why many customer experience initiatives fail.
West Monroe Partners believes that a positive and effortless customer experience can result in increased customer satisfaction, loyalty, advocacy and greater customer lifetime value, which leads to competitive advantage. Customer savvy organizations want to know who among their competition and across industries have advanced customer insights and customer experience capabilities and what they are doing to achieve those capabilities. Banks and to a lesser extent insurance companies are leading the way, mostly on the retail sides of their businesses. Healthcare also continues to make major strides, especially given healthcare consumerization and reform. Energy and Utilities industries continue to lag others– especially for municipal owned and regulated monopolies – who are now realizing the detriment that can come from poor customer satisfaction.
Profitable growth is always a challenge. When firms utilize data enabled, insight‐driven, organizational design and technology strategies to optimize the customer experience they can achieve competitive advantage. In today’s digital and socially connected world, customers are expecting effortless, multi‐channel, differentiating customer experiences from the firms with which they choose to do business. Is yours one of them?
Please click here for more detailed results on West Monroe Partners’ 2013 Customer Insights & Customer Experience Diagnostic Survey.
Dave Nash – Director, Customer Experience (Strategy &Insights)