my The Innovation and incubation division foraying into digital technologies and products in the experience economy (exonomy). Explore More
Companies are investing billions on improving the customer experience.
By 2022, two-thirds of all customer experience projects will make use of IT.
Does IT want to be seen as hero or villain?
CUSTOMER EXPERIENCE IS A PERCEPTIONWhat is customer experience, and why is it so important? From a business perspective, CX is tangible, practical, and measurable. Customer experience is Customers' perceptions of their interactions with a brand. Forbes Magazine quotes "Customer Experience is your New Brand". There are three dimensions to these perceptions — the measurable components of an experience that drives Customer Loyalty.
Forrester's CX Index proves that emotion is the strongest driver of customer retention, enrichment, and advocacy. For example, when a company makes customers feel appreciated, 76% indicate they'll keep their business with the brand, 80% say they will spend more with the brand, and 87% will recommend the brand to friends and family members.
Easy interactions let customers achieve their goals with minimal effort. When alternative paths to value are harder, ease of doing business creates competitive advantage. For example, digital music players didn't catch on at first because it was hard to get music onto them. See the example of Apple with iTunes model reaching US$2 Trillion market cap.
The product or service must deliver value to customers or the experience will fail fundamentally. The car must start and run, the electronic bill payment must go through to the recipient, and the shipped package must arrive at its intended location on time and undamaged. Effectiveness is critical even though it's less likely to drive customer loyalty than emotion.