The following article is a guest post by Larry Reed of DesignRush obtained through Tenfold – www.tenfold.com.
Tenfold powers better customer conversations
In the last several years, the rise of customer experience as the main focus of most digital marketing campaigns has resulted in the proliferation of various CX myths. Many inexperienced marketers who are just starting out can easily fall prey to some of these myths that reference half-researched articles and make potentially harmful conclusions.
Because of that, we’ve decided to take a look at some of the most common CX misconceptions and try to make things a bit clearer.
Big Data and CX
The Myth: In order to improve customer experience, you have to invest in big data processing.
You’ve probably already heard quite a lot about big data. Basically, this term refers to the huge amounts of data that internet users create on a daily basis and that can’t be processed using traditional methods because of the volume, variety, and velocity (the three Vs of Big Data). That is why most companies hire specialized big data engineers who are able to go through it and obtain useful information. This information is often used to personalize the customer experience and can, therefore, be quite beneficial.
The Problem: Inexperienced marketers believe that big data is a must if you want to improve your CX. The reality is a bit different, however. Whether you’ll get into big data or not depends a lot on your company and your (financial) capabilities. As Smarter CX points out – you need to have a clear plan regarding what data you want to extract and how you will implement to improve your CX. Collecting heaps of unnecessary data will only drain your resources, take up your valuable time, and hurt your company’s marketing efforts. If you have no explicit need for big data, don’t waste your time with it.
Measuring CX with NPS
The Myth: Net Promoter Score is the best indicator of the state of your CX.
Net Promoter Score is a popular customer metric that measures the relationship between your brand and the customers. NPS rose up as a more efficient alternative to the old customer satisfaction surveys and, today, more than two-thirds of the biggest companies in the world use it. This is probably the reason why so many new companies believe this is the most reliable and precise customer satisfaction measure out there.
The Problem: Customer experience is an exceptionally complex front-facing component of a business that can’t be measured with a single indicator. The entirety of a customer’s interactions with a brand — the customer journey– – and all of its parts need to be taken into consideration to create a clear picture of CX. Not only that, but customers are also affected by what Martech Advisor calls “moments of truth.” There are three main types of these moments that a customer can have with a brand:
- Major Turning Point in a Relationship – When a customer, for example, has a first encounter with a brand by unboxing a new phone. That first impression significantly affects CX.
- Crisis – The interaction between a customer and a brand during a crisis (for example contacting the call center after the loss of the aforementioned phone) has a huge impact on how satisfied the customer will be with the company. It can overshadow a number of good moments in the customer journey.
- Unexpected Delight – Introducing special (and uncalled for) discounts to old customers for no other reason than to show their appreciation is an example of an unexpected delight.
With all these elements at play, it’s obvious that a single measurement can’t really offer a true customer satisfaction report. You have to use a number of different customer success metrics to get the real picture.
Improving CX with Chatbots
The Myth: Chatbots will dramatically reduce the cost and improve the customer experience.
A lot of companies nowadays use chatbots to deal with customers’ basic questions and, that way, reduce the need for additional support staff. Chatbots are definitely part of the future because of their data collection component and the potential for hyper-personalization. According to Gartner, in just two years, around 25 percent of customer service teams will use virtual assistants like chatbots. As they get smarter, they will take on more and more consumer interactions, so it’s wise to invest in them.
The Problem: Many companies believe that using a chatbot will reduce their expenses drastically and that they won’t even need actual, human customer support. This is wrong. The use of chatbots is a young, new technology and, right now, they can only accurately deal with basic customer issues. Complex concerns still require a “human touch.” Using only automated bots to communicate with customers is a highway toward customer frustration causing CX to suffer. Getting personalized service with another person on the other end of the line (or the chat room) still works best in complex situations in terms of providing a human touch and also delivering the most efficient resolution to a concern.
Customers Experience Failures
The Myth: When it comes to customer memory, only the big failures actually matter.
Numerous company owners believe that only big, catastrophic brand failures have an impact on customer experience, while the small ones are ignored. However, this is not true. Entrepreneur explains that people subconsciously notice anomalies like catastrophic brand fails but they often ignore them if they’re not affected personally by them. The website uses an example of the time when Adidas used the phrase “survived the marathon” in the congratulatory email in Boston on the fourth anniversary of the bombing incident. Not only did Adidas recover from this mistake, but their sales went up. People simply dismissed it as unimportant.
The Problem: The problem lies in the companies that focus on avoiding catastrophes and often don’t notice minor incidents with the customers. These smaller incidents are often more personal and leave a mark on the brand’s reputation. A customer will have a worse experience with a company that is riddled with tiny, annoying issues. Put yourself in your customer’s shoes quite often and think about everything that would annoy you as a customer. You’re more likely to forgive a company for not participating in a humanitarian cause than for having rude customer support staff.
The Myth: Marketers control brands and shape them as they like.
The most important thing about good customer experience is establishing a connection between a customer and the company. This is often done through branding. When marketers create a strong brand, they give the company a visual identity, a voice, an attitude and, basically, they humanize it. That is why many smart business owners leave this job to specialized branding agencies that make sure the new identity is consistent on all fields and in all places.
The Problem: Many marketers believe that simply because they’ve created brands, they can control them and shape them as they please. The hard truth is that most people don’t actually (want to) see is that consumers are actually the ones who control the brand. It is the interaction with the consumers that keeps the brands alive. Ed Couchman, one of the directors at Facebook, says that it’s the customer service that helps build an authentic brand. Customers’ interactions with your company shape your brand–so it’s as much in the customers’ hands as it is in yours.
This was our selection of the most frequent CX myths that can actually hurt your organization if you follow them blindly. Every bold claim on the web that seems too persuasive and confident should be carefully researched before any application. People love to jump to conclusions without realizing the potential perils haste brings.
Delivering great customer experience must be top of mind for any business today, so keep an eye out to prevent yourself from falling prey to these myths.