Customer Experience Management: 3 Misconceptions

April 10, 2020

We are obsessed with Customer Experience Management – after all, it is our core business and the reason why we love what we do. A recent survey from PwC found that 73% of consumers indicate that customer experience is one of the most important factors in their purchasing decisions, just behind price and product quality (you can read the full report here). Sadly, their data also suggest that only 49% of U.S. consumers say companies provide a good customer experience. The statistics are eye-opening, but also reveal tremendous opportunity for companies who invest in Customer Experience Management. But what is Customer Experience Management? There are quite a few misconceptions about what Customer Experience Management is and how to properly execute a customer experience program, which are listed below.

Misconceptions of Customer Experience Management

1. Customer experience and customer satisfaction are one and the same.
Perhaps the most misunderstood aspect of customer experience management is that it is assumed to be synonymous with the concept of customer satisfaction. A satisfied customer is not necessarily an engaged customer, loyal to your brand, or willing to refer you to their friends and family. Satisfied customers are exactly that – satisfied. They are just happy with the service or product they received. What satisfaction doesn’t tell us is the customer’s experience – and that is ultimately what determines brand loyalty. Loyal customers will pay more for a positive and unique experience with your brand and will spread the word of your business to their friends and family – the most powerful marketing tool available to any business.

2. Customer experience is an outcome.
Because of the confusion between customer satisfaction and customer experience, businesses typically conceptualize experience as an outcome. But that is very far from reality. Customer experience is a process, from the perspective of the customer and the service provider. You will need more than an online survey to measure the customer experience. For example, Duco’s methodology of Customer Experience Management typically deploys focus groups, observations, and in-depth research to understand how the customer feels and thinks while experiencing your brand.

3. Employee experience is unrelated to customer experience.
No one will love your business until your staff loves it first. Yet most organizations are challenged by low engagement levels among their staff and this unfortunately translates into negative customer experiences and online reviews. The typical response is to let go of individual employees, but this is only treating the symptom of a larger issue within the business or organization. It also creates mistrust among other staff and lowers morale, especially when the decision is not supported by data. The key here is to keep your employees engaged and build a culture that genuinely reflect who you are as a business. This will help you attract the right talent and retain staff members who are truly passionate about your practice and fit well with the rest of your team.

“You cannot change what you do not measure.” –The Hawthorne Experiments

Businesses that measure the customer experience understand where improvements can be made to ensure their customers leave the business satisfied after each visit. Our experience shows that satisfied and engaged customers are your greatest source of referrals and will enhance your online reputation when the right tools and processes are in place. In our consulting practice, we measure each customer dimension separately and help our clients build experiences for them that will knock their socks off.