Next battleground: Customer experience

Next battleground: Customer experience

Mahendra Gautama Contributor Jakarta

"The customer experience is the next competitive battleground." Today, many executives believe in this statement.

Compared with some promises of great customer experience made by a number of companies in the 1990s, like "The third place" of Starbucks, Singapore Airlines' "A great way to fly" and "Great experience to shop online" coming from Amazon.com, in these early years of the 21st century, the promises and method of achieving customer satisfaction have expanded further.

It is seen by marketers as the ultimate marketing strategy to succeed in the current highly competitive situation. Telecommunications companies have also adopted the strategy for the benefit of their demanding customers.

"We sell customer experience" from British Telecom, "End to end customer experience" from Vodavone and "Committed 2 U" from the local telecommunications company, PT Telkom, are not simply slogans. These examples serve to illustrate the deep commitment of most telecommunications companies to providing the best for their customers in the form of unique, satisfying experience. This way the possibility of retaining them is that much greater.

Reputable corporations, including most major telecommunications companies, have no choice but to actually implement "customer experience", the most satisfying kind that there is. One of the basic reasons is that innovations -- technology or product features and the like -- do not stay as innovations for long.

Nowadays any innovation is quickly imitated. Take the case of NTT DoCoMo for example. In 2000 the company was regarded as a pioneer when it launched the world's first third-generation (3G) technology. At the time analysts and observers alike thought that its 3G technology would be unrivaled and would be a lasting competitive edge. It sounded reasonable because of its high level of sophistication, technology-wise, and the enormous investment. However, within three years, in 2003, 45 operators in 24 countries have incorporated the 3G technology in their services and in NTT DoCoMo's home country, Japan, three operators also offered this advanced technology.

Another reason is that telecommunications services are no longer akin to unbranded commodities that fulfill one's basic needs. These companies strive to be seen as brands that are close to their customers' hearts. However, to stay unique and different is becoming more difficult as most companies offer similar standards of quality, service, technology, and so forth, in the same price bracket.

So, the most vulnerable area -- customers' emotions that lead to their satisfaction -- is the only one left to "attack." In the area of customer experience, good is never good enough. And to be the provider of great customer experience with the right differentiations that create a lasting impression on them is certainly not easy.

Perhaps what Colin Shaw and John Ivens wrote in their bestseller Building Great Customer Experiences can be of some help. They said that at least the following seven elements have to be noted carefully to ensure success.

The first element is sustainable competitive advantage. Unique differentiation must be created to ensure that competitors cannot imitate within a short time. It means that the company must be able to understand the intricacies of its market and really understand its needs and provide the relevant solutions. It is almost like mind reading. The use of websites and providing quick, mobile units for services are a few examples in this case.

The second is to exceed customer expectations, both concrete or physical features of products and services, as well as the ensuing emotional impact -- satisfaction -- that they will create. Again, this is only possible by closely identifying and constantly monitoring customer expectations. Information technology is one effective tool to do this. Simultaneously, companies have to upgrade their customer relationship management.

"Daring to be different" is the third element. Although most marketing executives are aware that consumers' emotions are the key factor to incorporate this element, in the actual implementation, strangely, this vital key is often forgotten. Probably some of the things done by AT&T can be used as a reference. AT&T seems to lead in the area of providing extra services that create the highest level of empathy, as when a customer changes his address, moving to a new home or office. A variety of personalized services to assist customers are also provided through their website. In essence, AT&T treat its customers as close friends. There is nothing wrong with copying these laudable efforts.

Element number four is total commitment within the company, from its top management to front-desk staff or those who serve clients on a daily basis. The kind of commitment required here comprises inspirational leadership accompanied by the right corporate culture. In simple terms, this is translated into happy and smiling staff during each moment of contact with clients. Recruitment, selection and appointment should be done with "placing the right people in the right place" in mind.

"Outside in" and not "inside out" is the fifth element. This means telecommunications companies should look at themselves from the customer's point of view. Only then will they be able to provide exactly what the customer wants, including the type of channels and points of contact for interaction between company and customers. What T-Mobile has done is one good example. Prior to implementing its strategy it conducted a consumer survey and found out that the majority of consumers were teenagers and young professionals. To serve this niche that is "addicted" to the Internet, T-Mobile appropriately set up a website as the main point of contact. Here, various bonuses were given, such as free ring tones and free games.

The sixth element is keeping an eye on costs. Keeping them within limits evidently improves company revenue. However, some telecommunications companies have incorrectly interpreted "providing great customer experience" as some facelift actions like a change of logo, office renovation and increasing customer service staff. To a certain extent, these costly items or efforts may help. Another cost-efficient example from AT&T can be cited here. Instead of doing these expensive things, AT&T improved customer experience in a comparatively more efficient and economical way by adding its highly personalized and customized features. Its investment was relatively small, but customer satisfaction was the instant result.

The last, but not least, element is a high level of customer satisfaction -- "great customer experience" in the marketing jargon -- which creates lasting trust. This, in turn, is reflected in the company's brand personality.

Once a customer's trust is gained, a company's success is guaranteed to last. This is the new, 21st-century, rule of the survival game. The result is perfect, as the winners are both consumers and companies.