2021 Preditction

JOURNEY

a customer experience newsletter

(this week’s newsletter is a 7-minute read)

2021 Predictions WHAT’S JOURNEY NEWSLETTER?
Journey is a weekly newsletter from Y Meadows that curates the best thought leadership at the intersection of technology and customer service.
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3 Ways to Innovate the Customer Experience


3 Ways to Innovate the Customer Experience —💬 from Forbes

Necessity. Innovation. Experience.
Today, in the experience economy, there is ample evidence to suggest a strong connection exists between necessity, innovation, and experience.

  • But how do those three link together? And how does innovation apply to something like customer experience?
  • For businesses and leaders aspiring to build and sustain loyalty among their target customers, understanding the answers to these questions is crucial to innovating — not just improving — the customer experience. Organizations that are successful in retaining their most valuable customers — and growing profitably in the process — do these three things:

#1: Give the Customers What They Need, Not What They Want

The first step to innovating the customer experience is to understand necessity. In order to discern customer needs, most organizations ask for direct feedback. The savviest among them listen to feedback on unsolicited channels, like social media, as well as through solicited mechanisms, like surveys.

  • What happens next with this data varies in scale and sequence for each organization, but it usually involves combining that customer feedback, or experience data, with operational data, or metrics like call wait time and transaction volume.
  • Insights from the combined data are extracted and shared with the right people who take some form of action to address pain points from the feedback, including closing the loop with unhappy customers.

When customers complain about a broken process, most companies’ first instinct is to fix the process — not change it altogether.

  • Addressing customer feedback is important, but acting on that data alone will create, and perpetuate, a company that is reactive and focused on just repairing or fixing — not one that will truly “innovate” the customer experience. Customers don’t always express a need they may have because they don’t know they have that need until a product or service is created to fulfill it.

3 Ways to Innovate the Customer Experience


#2: Prioritize Experience Innovation over Product Innovation

Long-term competitive advantage lies in customer experience innovation.

  • Take Apple, for instance. Not only did the company create a product that customers love, but it created an ecosystem and experience that buyers couldn’t find anywhere else. Before the pandemic, millions ventured into Apple stores every month just to explore the newest gadget. Apple turned their stores into something more akin to a town square where customers could browse, tinker, socialize, or get immediate help with their products at the Genius Bar. That unique experience is hard to replicate, even today.
  • Understand that product innovation would only get them so far, and when it comes to building and sustaining loyalty, experience innovation will always trump product innovation.

#3: Think of Innovation as a Mindset

Innovation isn’t always about shiny new tech or the interruption of an entire business model but can function more like a perpetuated behavior

  • Harnessing innovation to fuel experience-led business growth is more than developing new products and services or participating in a hackathon to generate new ideas to solve a particular problem.
  • Innovation is a mindset — and can even become a habit — if you embrace creative thinking as a skill that can be learned and improved with rigorous practice, not as something that is purely innate.

3 Ways to Innovate the Customer Experience


 

🔍 [INDUSTRY FOCUS] 🔍

Today we’re introducing a new element in our newsletter where we take a deep dive on one industry and how CX is disrupting and effecting its method of business.
This week’s industry?
💵 Financial Services 💵
  • Once Siri was launched in 2011, it didn’t take long for various industries to take note of the power of AI. The financial services industry was no exception.
  • By 2017, Bank of America had created Erica, its own virtual voice assistance service. Within just two months of its completed phased rollout, more than 1 million users had successfully utilized the AI service and positive customer feedback increased.
  • As much of the world moved online, banks and other financial institutions had to adapt to a new way of operating. As a result, call wait times increased, and individuals found themselves frustrated by having to wait for long periods of time to speak with a customer service representative. Banks needed to adjust and, with tools like conversational AI already available, the roadmap to maximizing customer service was clear.
  • By welcoming conversational AI – a specific type of AI designed to interact with people in a humanlike way – banks have been able to carry out the growing expectation of a seamless digital experience.
  • Conversational AI goes beyond providing basic information – it can also help consumers make important financial decisions by providing up-to-date information on their finances.

3 Ways to Innovate Customer Experience



Snacks for the Road 🍿


A Penny For Your Thoughts…

“In other words, the consensus sale isn’t something you should be fighting—it’s something you should be actively pursuing. You can’t just elevate the conversation and cut everyone else out because it’s exactly that team input that the decision maker values most when it comes to loyalty.”

Matthew Dixon
The Effortless Experience (2013)

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