A focus on customer experience by marketers should instead become a focus on customer management, according to this article from AdAge.com. A customer experience focus has become extremely popular in recent years, with 89 percent of businesses now saying they compete mostly on this basis. However, the return on the investment in customer experience has not been great. The author says that may be because the focus has not been on creating a valuable experience for the customer that will also create business value. How to turn this around?
A company should examine a customer’s past and present value to determine what type of customer experiences are likely to result in higher value in the future.
A company should determine which customers result in the highest value, and then seek to understand what those customers truly care about. In other words, analysis of customers needs to be more precise.
After taking a more comprehensive view of both the ultimate value and of specific customer segments, as described above, a company should invest only in the tactics that will result in the highest value back to the company—an improved R.O.I.
A company should continuously take detailed measurements of all value being created by improved customer experiences.
All of that can only be accomplished if the proper technology is used and by ensuring that every place a customer has contact with the company is reporting their data. The result will be continuous and deep insights into customer behavior and its resulting business value.