![]() ![]() So the executives looked to another lever-customer experience-to see if improvements there could reduce churn and build competitive advantage.Īs they dug in, they discovered that the firm’s emphasis on perfecting touchpoints wasn’t enough. The common ways to keep customers were also well known, but they were expensive, including such things as upgrade offers, discounted rate plans, and “save desks” to intercept defectors. ![]() Churn was a familiar problem, of course, and the typical reasons for it were well understood: Pricing spurred some customers to leave, while competitors’ technology or product bundles lured others away. Although it was among the best in the industry at managing churn, it faced a maturing market, heightened competition, and escalating costs to keep its best customers. They also discover more-effective ways to collaborate across functions and levels, a process that delivers gains throughout the company.Ĭonsider a leading pay TV provider we worked with. In our research and consulting on customer journeys, we’ve found that organizations able to skillfully manage the entire experience reap enormous rewards: enhanced customer satisfaction, reduced churn, increased revenue, and greater employee satisfaction. A company that manages complete journeys would not only do its best with the individual transaction but also seek to understand the broader reasons for the call, address the root causes, and create feedback loops to continuously improve interactions upstream and downstream from the call. ![]() A customer might have been trying to ensure uninterrupted service after moving, make sense of the renewal options at the end of a contract, or fix a nagging technical problem. But if asked about the experience months after the fact, a customer would never describe such a call as simply a “product question.” Understanding the context of a call is key. The company may receive millions of phone calls about the product and must handle each one well. Think about a routine service event-say, a product query-from the point of view of both the company and the customer. It also diverts attention from the bigger-and more important-picture: the customer’s end-to-end journey. But the narrow focus on maximizing satisfaction at those moments can create a distorted picture, suggesting that customers are happier with the company than they actually are. It’s a culture that’s hard to build otherwise, and a true competitive advantage goes to companies that get it right.Ĭompanies have long emphasized touchpoints-the many critical moments when customers interact with the organization and its offerings on their way to purchase and after. But they create a culture that engages the organization across functions and from top to bottom. Journey-based transformations may take years to perfect. They must identify key journeys, understand how they are performing in each, redesign and support those journeys, and change mind-sets to sustain the initiatives at scale. To realize these benefits, companies need to embed customer journeys into their operating models in four ways. In their research, the authors-partners at McKinsey-have found that organizations able to skillfully manage the entire customer journey reap enormous benefits: enhanced customer satisfaction, reduced churn, increased revenue, and greater employee satisfaction. And it distracts from the more important picture: the customer’s end-to-end experience. But this focus can create a distorted picture, suggesting that customers are happier with the company than they actually are. Companies have long emphasized touchpoints-the many critical moments when customers interact with the organization on their way to purchase and after.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |