Helene is militantly in favour of Customer Experience (CX) which she has promoted and organised for years.
Sue and Helene met in Paris and listened with curiosity to each other’s convictions and practices and found them to be very close, yet different and decided to write about it.
Here’s part 1 and introduction to our series of perspectives on the proximity, comparison and emergence of a business mutualism between CX and CS:
Helene about CX Stories:
A few months ago, AmazonGo video became viral. They opened a store where thanks to an app in their smartphone, customers come, shop and leave without going through cash desks. There are not even any cash desks in the store by the way!
On April 10th 2017, a disturbing video, about United Airlines this time, got watched thousands of times across the world. It showed a traumatized 69-year-old customer who paid for his ticket and asked for nothing but to be be flown to his destination. He was dragged off the plane and injured as airport police got called by the aircraft staff and dealt with him like a criminal, only to make room for transferring partner airline staff.
On the one hand, we witness what may be the ultimate shopping experience: customer extreme convenience and user friendliness, enabled by sophisticated technology behind the scene.
On the other hand, we witness extreme – and difficult to believe – excess of strict adherence to process and total lack of human empathy by company staff. This, followed by a very poor speech from the CEO later in the day, demonstrating that when a fish rots, it rots from the head down.
These are both examples of customer experience. The best and the worst. Customer Experience is indeed all about how your customers individually perceive interactions with your brand, self-assess their satisfaction compared to their initial expectations, share their story with friends and network and eventually remember afterwards their related emotions.
Sue about CS stories in the making of…:
Being relatively new, the storyboard for CS in Europe is “in the making of” as companies investing in CS are keen to build their ROI business cases.
Whilst CS is currently often associated with SaaS, the first customer success teams saw the light of day with CRM software companies, somewhat frustrated with the poor adoption and relatively low obtained value. The first CS organisation was a non-SaaS company called Vantive in 1996, followed by Siebel on Demand in 2004 and then in 2005, Saleforce gave birth to their “Customers for Life”. If Salesforce is the best-known success-story for CS (80% of their current revenue being driven from their current client base), this emerging role is applicable to any recurring revenue model (SaaS or not) as well as any business wishing to distinguish themselves by making their customers want to stay longer, invest more and advocate on your behalf.
Sue to Helene: What is the definition of Customer Experience?
It is the sum result of how the customer perceives each of its interactions with the company during the whole journey of purchasing and then using its product or services over the duration of their relationship. This perception covers rational assessment as well as emotions. It is highly subjective and individualized.
Helene to Sue: What is the definition of Customer Success ?
Customer success is a company-wide mindset and approach to operationalize and generate win-win growth, for customers and consequently for suppliers. CS is preoccupied with achieving the evolving desired business outcomes of customers as their internal and external contexts change, presenting new challenges and opportunities via their interactions across the customer journey. In the words of Lincoln Murphy:
“Customer success is when customers achieve their desired outcome through their interactions with your company”
CS therefore includes CX and aims to obtain customer desired outcomes via controlled operationalisation. In a recent Webinar with Dan Steinman, we explored the following equation relating CS, CX and CO (Customer Outcomes):
Sue to Helene: Who should work on Customer Experience?
Well, when you think about business, you’ll agree that there are no parameters more important than customers. All companies thinking seriously about their long-term performance should be working on their CX.
Traditional companies may have forgotten the customer priority as they are too busy with internal and administrative challenges, regulations, strategy, financial reporting, stock exchange volatility and so many other topics. New entrants, be it already mature digital companies or fresh new start-ups, are focussed on customers as priority. This is one key reason why they are dangerous to established business.
CX references often come today from Amazon, Apple, Uber, Airbnb.
If you look around, you can find your inspiration with lots of others. Nespresso, Maïf, Leroy-Merlin, Midas, Ventes-Privées… are set leaders. Others are improving quickly and smartly: Air France and its digital services, SNCF Voyages, La Poste…
Helene to Sue: Who should be interested in implementing customer success and when?
All recurring revenue companies should be preoccupied with introducing a CS approach. Value is obtained by customers over time through a 3-step succession of adoption , performance and transformation. When customers measure positive ROI during the transformation stage, they will wish to remain loyal and invest more in order to grow more.
CS is not only applicable to software companies and is increasingly more practiced in other typical subscription sectors such as media, telecom and insurance but also in more industrial sectors where IoT and AI enable to measure customer consumption patterns and behaviours.
CS should be anticipated and implemented as soon as companies start acquiring paying customers. The acquisition and contract signature is just the beginning of the customer hands-on experience. The on-boarding stage is critical in ensuring the desire for the customer to adopt new ways of doing business and the consequent customer journey milestones and engagement are key to pave the way to success. If these success milestones are not deliberately traced and the customer journey is perceived as a haphazard mystery tour, then there is a big chance that the customer will lose track and go astray to other places.
Sue to Helene: Why would a company spend time and money in CX?
There are several reasons:
- Ensuring that customer experience is aligned with the brand promise and their expectation is the healthiest way to build loyalty. This also means it is cheaper and more profitable to recruit new customers.
- Sustained differentiated experience leads to growth and improved market share.
- Many surveys and research demonstrate that companies serious about CX are financially performing 5 to 20% better in their sector.
- CX strategy contributes to giving sense to employees.
- CX culture can even lead to new and more profitable business models, for example the subscription service model developed by Michelin for truck kilometre service, or else the management print service model adopted by the printing industry.
Helene to Sue: Which benefits can a company expect from working on CS?
The reasons you indicate for CX above are also applicable to CS and in addition:
- CS enables customers to grow as a result of facilitating the achievement of their desired outcomes.
- As a consequence of the above, CS allows suppliers to grow.
- CS allows to operationalise a customer-centric strategy based on driving results. This includes defining customer journeys based on segments, scaling customer engagement and aligning internal roles to meet desired customer outcomes.
- CS acts as a company financial catalyst. It allows the collection, analysis and actioning of pertinent customer data to control costs, forecast revenue and detect risks and opportunities.
In our current evolving business environment, CS and CX cohabit side by side mutually benefiting each other in a kind of business mutualism:
the challenges of B2B are inspired by best-in-class B2C CX practices, while the B2C world is evolving their CX approaches into brilliant models and practices where the likes of Netflix and Fitbit have become CS/CX rock stars.
CS and CX share the common ground of customer loyalty and delivering pristine experiences and pertinent engagement across customer journeys. Whilst CX is concerned with delivering an end-to-end positive emotional and rational experience to reach satisfaction and lock loyalty and love, CS extends that to include driving business outcomes and ROI – in a word – success!
Together both CX and CS create a win-win business situation:
“CX locks consumer/customer engagement and CS locks business outcomes”.
Coming soon… join us in our next perspectives on CS and CX.