Evolving From The Feedback Economy To The CX Economy

The Feedback Economy. A common (perhaps even overused) buzzword in today’s business climate, it is often discussed as one of the most critical factors in building and maintaining consumer trust and loyalty.

I don’t disagree with this notion. Clearly, from the rise of mainstream internet use in the 1990s to the proliferation of social media and review sites in the 2000s, the voice of the consumer is louder than at any time in history. People look to the opinions of others when deciding which brands to do business with. So much so that an entire industry (think Reputation.com, for example) has been built just to help brands manage their online reputation and respond to public reviews.

However, along with many other experts, I contend that focusing on the feedback economy alone results in a view with far too narrow of a lens, one that is often reactive in nature. While managing online reputations and monitoring/responding to customer reviews is crucial, it often comes too late in the game after the damage has been done.

On the contrary, the most innovative brands are pioneering the CX Economy, which involves proactively developing strategies, operations, and technologies that align business decisions with ideal customer experiences. These experiences are still based on consumer feedback, but most often from feedback attained directly from customers and before it becomes negative or public. 

At Servicing Solutions, we have embraced the CX Economy to the benefit of our clients. We use our years of experience and insights gathered from the many customer experiences we manage to build fluid programs that meet consumer preferences from the start…and as they evolve. This results in significantly increased customer satisfaction and diminished levels of complaints or negative reviews for our clients.

How is this accomplished?

Build Customer Experience Programs From The Outside In:

We listen to our clients’ customers. We get to know their preferences early on and react accordingly to provide a seamless experience. At the heart of this approach is a commitment to respecting customers’ time.

According to a recent Forbes column, “time is the currency of value. Consumers see value either in time well-spent or in time well-saved.” In every experience we provide, we aim to leave the customer feeling that their time was not wasted.

When you consider that customer satisfaction rates stand at 93% for one contact resolution, 70% for two, and 49% for three, this commitment to respecting customers’ time provides value to our clients that speak for themselves.

Invest in Quality Assurance: 

Quality Assurance (QA) is a crucial element in protecting the integrity of customer service programs. From 100% of customer calls being recorded and retained, robust compliance testing, and regular coaching sessions with agents to agent scorecards and powerful post-call speech analytics software to identify red flags, QA works to ensure that we provide the best and most secure experience for our client’s customers.

However, to truly maximize the value of a QA program, it should be looked at more broadly than a compliance-driven effort to identify red flags. Rather, it should be viewed as a limitless source of information about customer preferences to guide your strategy.

Regularly reviewing customer interactions to identify both positive and negative feedback is a key component in designing a customer-first experience. Operations and customer experience architect leaders should be highly involved to put these cues into action.

Align Feedback with Business Objectives:

Let’s not ignore the second half of the definition of the CX Economy: “align business decisions with ideal customer experiences.”

If a customer experience program results in satisfied customers but does not support overall business objectives and meet critical efficiency and profitability metrics, your efforts will be wasted. It’s imperative to take the time to arrive at the right mix of a customer-first approach and your company’s and shareholders’ financial interests.

To put it in context, a Forrester Research study confirms the revenue impact of the customer experience when aligned with appropriate KPIs. They pointed to examples such as a single-point increase in the Customer Experience Index (CXI) leading to $175 million more in revenue for a wireless service provider. Or for a luxury car manufacturer, it led to $118 million in growth, and up to $65 million for a luxury hotel chain. The research goes on to reveal that a 10-point gain can represent more than a $1 billion increase for many companies.

Ready to tap into the CX Economy and experience similar benefits? We’d love to chat. Contact us at sales@servicingsolutions.com.