Designing better customer experiences

Customer experience management is more than a buzz word, and it can deliver lasting value companies who know how to design and manage it. High-quality "customer experiences" can change market perceptions and expectations, increasing loyalty and making it easier to charge premium prices for valued products and services. Look around. Citigroup/Smith Barney and others are linking customer relationship management (CRM) systems to better service "mass affluent" clients. They promise more seamless service and lower or no transaction fees for their most important clients. Even Wal*Mart is publicly trying to emerge from the overcrowded corridors that have plagued mass retailers forever to compete better with Target. And even Home Depot is struggling to address customer service issues from its past regime under Bob Nardelli.

Finding experiences that differentiate

When Allstate Insurance Company wanted to increase the number of new and retained policies, it did not leap into the price war with discounters GEICO and AFLAC, it looked inside itself to define its options. What it found wrapped in its maverick past was a commitment to providing affordable insurance and terrific customer service to smart buyers. Your Choice Auto®... is now building consumer trust and reinforcing Allstate’s promise.

What’s your brand promise?

Below are three quick methods for figuring it out and building your brand:

Assess culture, process and communications based on customer needs and company goals. Do you have:

• A well-known brand identity
• A consistent brand voice
• Shared functional expectations
• A distinctive look and feel
• Streamlined operations

Differentiate customer segments based on long-term value. This will help you to invest in brand building that captures:

• Value today (real margin net of cost to serve)
• Potential today (share of wallet in each segment)
• Potential tomorrow (extrapolating from sector & firm trends)

Coordinate experiences across channels and life- cycles to enhance. This is where customers experience your brand; consider:

• Service levels
• Cross-sell and up-sell opportunities
• Retention and loyalty challenges
• Desired brand perception.

When you follow these steps, you will develop many useful brand-building ideas that fundamentally address customer needs and expectations.

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