ARCHIVE FOR THE ‘experience-economy’ CATEGORY

In his previous article for Field Service News, Mark Brewer, Global Industry Director, Service Management, IFS introduced the concept of the experience economy, now he outlines why digital transformation is the key to driving it forwards...

Here's a scary statistic. The average person clicks, taps or swipes a mobile device 2,617 times a day.  It shows just how much time we now spend interacting with the online world. Banking, booking holidays, shopping, socialising and so on, we increasingly live our lives through a screen. And with every interaction, we expect a particular level of service in return.

With digital technologies continuing to advance rapidly, along with consumers' understanding of the possibilities they enable, people demand an immediate and seamless experience whenever and however they make contact. These expectations, which are already prevalent in the home, have now evolved in the workplace. This has major implications for the planning and delivery of service, and specifically how companies look to drive customer loyalty (and ultimately retention) via a superior experience.

Automation and Artificial Intelligence (AI) have a significant role to play here. AI isn't strictly new of course. But what is new is the way it influences today's experience economy by affecting outcomes, driving engagement and in many cases scaling the human.

 

Superior engagement

A comprehensive customer contact strategy is essential for any service organisation. Traditionally, this has focused on voice or email; now it includes an entire omnichannel capability with multiple media touchpoints. As you'd expect, this evolution is being driven by younger age groups. 26 per cent of millennials use social media and 29 per cent use texts and messaging apps to reach out for service, while three-quarters of all people over 44 years of age prefer using more traditional means such as emails or phone calls.

For example, if you want to book an appointment for someone to come and service your boiler, you can organise it without having to speak to anyone, online. A chatbot replaces the 'real' person. This is more convenient for you, more cost-effective and efficient for the organisation you're talking to - but it also raises your expectations.

This means responses must be faster, and there's no room for error. There's no time for long calls with operators or the patience to be passed from department to department. And gratification must be swift and successful, however you interact - whether via a web portal, email, virtual assistant, or even an instant messaging service like WhatsApp.

74 per cent of companies offer some form of self-service for customers - and the majority have implemented it specifically to improve customer experienceThis has implications for businesses looking to maintain positive customer relationships. An operation which has traditionally focused on contact centres, predominantly powered by phones (i.e. voice), must now deploy a comprehensive, omnichannel communications suite capable of serving a wide range of contact media, anytime and anywhere.

This can be problematic. Many companies can't afford to extend their contact centre facilities to multiple locations, or cater specifically to every market they're working in.

However, help is at hand with virtual contact centres which can make efficient use of distributed and varied workforces, automatically matching agents with requests and customers.  This also drives a more responsive, agile, and scalable workforce where agents can engage in multiple simultaneous conversations using multiple chat sessions and providing consistently high service levels.

The B2C world already does this pretty well. 74 per cent of companies offer some form of self-service for customers - and the majority have implemented it specifically to improve customer experience. B2B organisations need to follow suit. The rewards are big for those who do it well. Companies with effective omnichannel communications enjoy 28 positive customer experiences for every one negative experience, while companies without this experience just two positive experiences for every one negative*.

It's a no-brainer. Doing omnichannel well can create up to 14 times more positive customer experiences. Crucially, this also influences customer loyalty. To look at it another way, your business will potentially only lose one in 29 customers, as opposed to one in three!

 

Powering the experience

The driver here is digital transformation, enabling new levels of service provision. Customer interactions differ based on age, demographics and preferences. Digital supports them all. It's no longer just your customer services department talking to these customers, it's your equipment, IoT sensors, AI, chatbots and more: predicting behaviour, recommending actions, solving issues, intuitively.  The more it does this, the smarter it gets.

This technology is transformational and can bring huge benefits to your business. However, you need the right infrastructure in place to manage it.

So, what next?

To see examples of how IFS has helped customers drive digital transformation in their operations, and understand how omnichannel customer engagement can improve your customer’s experience, visit ifsworld.com.

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*Forrester: The role of emotion in customer experience

Commerce has successfully transitioned from being based around commodities, then products and finally services. But that is not the end of the evolution as Mark Brewer, Global Industry Director, Service Management, IFS introduces the concept of the experience economy...

Commerce began with commodities.

Hundreds of years ago, we simply exchanged items for money in a single transaction. Take coffee, for example. You could buy a sack of beans, but you’d still have to put in a lot of work in to make a drink.

So, these transactions gradually became more constructive and based around specific buyer needs. Commodities became products. Coffee beans became coffee jars – ready-ground. All you had to do was add water. It was a better, faster and a more cost-effective solution.

As competition intensified, our service economy was born. Rather than getting your coffee from a jar, you went to a coffee shop where someone would not only make it for you but also ensure it tasted just right. Success was now about ensuring customer satisfaction.

But what’s next?

Welcome to the ‘Experience Economy’

Technology has transformed the way people interact. In the digital age, we expect to track orders, resolve issues and update information immediately. It’s a world of ‘connected customers’, and businesses must respond with exceptional, personalised service experiences. Customer engagement is king and servitization enables it.

Staying with the coffee analogy, consider Starbucks. Now, you’re not just buying a product or service, but an entire lifestyle. However brief your visit, you’re immersed in the Starbucks brand - from communications and messaging to products and services, and so on. It’s a rich, multi-sensorial, emotive world... and whether good or bad, you leave with a feeling. It is memorable.

And that’s the difference between the service and experience economies. Done well, this experience creates positive brand associations and is the ultimate driver of customer loyalty.

Mass customize a service and it becomes an experience – making you feel like “one in a million” (Starbucks puts your name on the cup!). It’s the next evolution for businesses, although some are already well on their way - like the medical devices industry.

MRI scanner manufacturers are under pressure to deliver high-quality, accurate scans every day.

With the stakes so high, these companies don’t just sell the machines, they also guarantee their ongoing service performance and overall user experience. It’s about the entire patient and hospital interaction, from start to finish.

It’s like staying in a hotel. These days, you probably wouldn’t only judge your stay based on your room, or how comfortable your bed is. More likely, you’d consider your entire accommodation experience - from the moment you make your reservation online to your final steps out of the door after checkout. Each influence and interaction along the way contributes either positively or negatively to your overall opinion.

Every touchpoint counts

This analogy may seem obvious - but it’s essential to doing business today. Most organisations have traditionally measured customer satisfaction to predict loyalty and future behaviour. However, consumers consider every individual touchpoint, rather than simply linear values like ‘Did I like the product?’ or ‘Did I get value for money?’ So, this metric may be less valid these days.

Sure, the product may be excellent and do exactly what they always wanted, but that is table stakes today.

What if the delivery lead time was too long, the support helpline is not promptly answered, or the returns process inefficient, then they may shop elsewhere next time.

Elevator manufacturers demonstrate this opportunity in action. Most products are similar in functionality and have become commoditised.

They use similar technology and parts so it’s difficult to differentiate between them on appearance or performance alone. To gain an advantage, they focus on overall experience. It’s no longer about being the fastest elevator or the most hi-tech: it’s about giving every user the best end-to-end experience, that fulfils their particular needs. Their focus today is not their customer (i.e. the hotel), but their customers’ customer – you and I.

If we look at this from the perspective of the IT industry, for service providers the mindset shift is from selling contracts to selling outcomes, such as user experiences and comprehensive service level agreements. In such a competitive environment with so many similar products and services on offer, this gives vendors a real opportunity to create difference and build success within their customer base.

So, how do you get to this position?

Many companies don’t yet have the right processes or infrastructure in place. Systems are not optimised and often disjointed which means ERP is either over-stretched or misused. IFS can help. Our end to end service lifecycle management solution is purpose-built and holistic, delivering customer engagement seamlessly, throughout the journey.

The experience economy is here to stay - and customer engagement aimed at delivering outcomes is its currency. To find out more about how to make the experience economy work for your business, visit IFSworld.com.

 

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