„Customer Experience Manager“ or „Chief Customer Experience Officer“—more and more often these job roles appear in job advertisements. Business journals report about wellknown brands setting up CX departments and announcing that they want to focus on increasing the recommendation rate or customer satisfaction. Customer Centricity has become increasingly prominent in the consciousness of companies in recent years. However, there is often a lack of an effective strategy for responding adequately to dynamic technological developments and the resulting change of customer expectations.
After all, consumer habits have long since ceased to be influenced primarily by the product or service. The subjective perception of the customer, their emotions at every contact with the brand are decisive for the conversion. The task of CX management is to positively influence this perception across all channels and touchpoints. For many traditional business models, this means disruption. The pressure is mounting: To remain competitive, these companies must swiftly develop a solid CX strategy.
This is important and correct for two reasons. First, consistently focusing on the customer and optimizing CX has been proven to increase business success and to have a lasting positive impact on the entire company. Second, the complexity of customer—company interactions has increased dramatically, which also leads to more diverse Customer Journeys. Existing patterns of experience design have to be adapted to this—in other words, redesigned.
Mastering the complexity of the Customer Journey
Designing a holistic CX strategy is a major challenge. More and more touchpoints and channels–both physical and digital–need to be considered when designing a holistic CX. The idea of so-called Total CX (TCX) takes an omnichannel approach. In doing so, companies must understand the emotional dynamics that touchpoints trigger. They need to understand how customers feel, think, and ultimately act at every touchpoint of the Customer Journey.
To understand this, CX performance must be measured and monitored, which in turn requires companies to have high CX performance and maturity.
The complexity of analyzing and developing CX along the Customer Journey becomes clear when you consider the following: Every single touchpoint can be classified as an interaction point—from face-to-face contact and any physical or digital perception of the product, service, or communication with the company to spatial perception in stationary stores, for example.
Each touchpoint can be perceived differently depending on individual customer types or the respective phase of the Customer Journey and can trigger different (re)actions.
In a holistic end-to-end Customer Journey, the transitions between different channels and the phases, such as pre-purchase, purchase, and post-purchase, happen with a low level of friction.
Companies must act at every touchpoint of the Customer Journey."
It is challenging to implement a successful CX strategy under these conditions, but it is possible if companies commit to understanding the needs of their customers and if they know in which direction they want to further develop the CX.
The following questions highlight how organizations should think about their core CX approach when designing their future CX strategy:
- What are the customers’ needs and are they meet by the current experience? Where is the biggest gap and how can the organization solve this problem?
- What is working well in the current Customer Journey and what is not? Where are the friction points and how can they be resolved?
- What is the organization currently measuring along the Customer Journey? What data does the company currently not have?
- Where do customers drop out along the Customer Journey?
- How effective is the current CX approach?
CX differentiators and approaches of organizations
As part of our analysis and in several successfully completed projects, BCG Platinion has developed a framework based on seven core differentiators from which organizations usually define the leading elements of their CX strategy.
Each differentiator represents a core CX strategy identified through an iterative process of analyzing the current CX engagement of companies in a wide range of industries.
No company belongs to just one cluster. Overlaps, even multiple ones, are normal. Nevertheless, there is always a strong tendency toward one of these cores. The other differentiators are also important, but they are not at the center of the respective CX DNA.
Developing a successful strategy step by step
For the development of a CX strategy, these core differentiators form a solid foundation, and they provide inspiration.
Nevertheless, solving the above challenges is not trivial. It requires a deep understanding of customers and their current needs.
A TCX strategy should therefore be implemented step by step—starting with the understanding of the current CX landscape, followed by the redesign and ultimately the application of the optimized CX strategy.
Discover the rest of our series on Customer Experience:
The Next Frontier of Customer ExperienceLearn More
Companies can gain an edge by developing an overarching CX strategy and management
All or Nothing: Designing Holistic Customer ExperiencesLearn More
The first article of our series dives deep into why using frameworks helps in building a new CX strategy and reducing the complexity of the process
Stand out from the Crowd: Defining the Core CX DifferentiatorsLearn More
The second article in our CX series shares how to define the CX differentiators based on strengths and objectives