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.