Aisha Amaira is a MarTech expert with a strong passion for integrating technology into marketing. With experience in CRM marketing technology and customer data platforms, she focuses on how businesses can leverage innovation to derive key customer insights. In this interview, we discuss the evolution of customer experience, the shift towards the experience supply chain, and practical steps companies can take to adapt to these changes.
How has the concept of customer experience evolved over the years?
The concept of customer experience has significantly evolved from being something companies believe they can design and control to an aspect largely owned by customers. Customers now define, engage, and build their own experiences using an array of tools, channels, and content available to them. This autonomy places customers at the center of their journey, leading companies to rethink their strategies.
Why do you believe that companies can no longer control the entire customer experience?
Companies can no longer control the entire customer experience because customers now interact with brands through complex ecosystems extending beyond the company’s control. Whether through social media, third-party reviews, or peer recommendations, these interactions often have a significant impact on a customer’s perception and experience. This decentralization prevents companies from managing every touchpoint directly.
What does it mean for customers to “own” their experiences?
When customers “own” their experiences, they are actively shaping and personalizing their journeys. They choose how they interact with brands, mix and match products and services, and seek information and feedback from various sources. This ownership means customers have the ultimate say in how they perceive and value their interactions with a brand.
How are customers today crafting their own experiences?
Customers today craft their own experiences by utilizing the plethora of resources available to them—social media, online reviews, influencer recommendations, and more. They remix products and services, combining them in ways that best suit their needs and preferences, which often results in unique, personalized experiences that companies could not have anticipated.
Can you give examples of how customers are remixing products, influencers, and services to meet their needs?
An example of customers remixing products, influencers, and services can be seen in the beauty industry. Consumers might discover a skincare routine from a beauty influencer on YouTube, purchase products from different brands based on online recommendations, and share their own results on social media. This creates a personalized experience shaped by various external factors.
What challenges does this present for companies?
This shift presents several challenges for companies, including the need to adapt to decentralized control over customer experiences. Companies must focus on collaboration within their ecosystems, ensuring consistent and valuable interactions regardless of direct control. This requires a flexible and responsive approach to customer experience management.
What are the potential consequences of providing bad or inconsistent customer experiences?
Providing bad or inconsistent customer experiences can lead to significant negative consequences. According to the PwC Customer Loyalty Survey, 55% of consumers would stop buying from a company after several bad experiences, and 32% would leave after encountering inconsistent experiences. This highlights the importance of maintaining high standards across all touchpoints.
Can you share insights from the PwC Customer Loyalty Survey regarding customer reactions to bad experiences?
Insights from the PwC Customer Loyalty Survey indicate that customers have little tolerance for poor experiences. They are quick to abandon brands that fail to meet their expectations, which underscores the critical need for companies to deliver consistent, high-quality interactions to retain customer loyalty and trust.
What is the experience supply chain, and how does it differ from the traditional supply chain?
The experience supply chain is a framework that focuses on orchestrating rather than owning customer interactions. Unlike a traditional supply chain that optimizes for cost, speed, and quality of physical goods, the experience supply chain optimizes for engagement, consistency, and value across all customer touchpoints. It leverages an ecosystem of contributors to deliver cohesive experiences.
How does borrowing concepts from traditional supply chains help in optimizing customer experiences?
Borrowing concepts from traditional supply chains helps in optimizing customer experiences by introducing principles of efficiency and coordination. Just as traditional supply chains streamline production and delivery, the experience supply chain ensures that each contributor plays a specific role in creating a seamless and valuable customer journey. This approach enables companies to manage complexity and deliver consistent experiences.
Why is it important for companies to focus on orchestration rather than ownership of the customer experience?
Focusing on orchestration rather than ownership is important because it allows companies to collaborate effectively within their ecosystems. By managing these interactions and ensuring they complement each other, companies can provide a unified and engaging experience, even if they do not control every touchpoint directly. This adaptability is crucial in today’s dynamic market.
What key roles shape customer experiences within the experience supply chain?
Key roles within the experience supply chain include experience designers, engagement enhancers, introduction specialists, and capability contributors. Each role focuses on different aspects of the customer journey, from initial discovery to transaction and engagement, ensuring that experiences are well-rounded and coherent.
How do these roles work together to deliver a cohesive customer journey?
These roles work together by fulfilling specific functions within the customer journey. Experience designers create the overarching strategy, engagement enhancers focus on maintaining ongoing interactions, introduction specialists help bring new customers into the fold, and capability contributors provide the necessary support and infrastructure. This collaboration ensures a seamless and integrated experience.
How has Glossier utilized the experience supply chain model to enhance customer experience?
Glossier has enhanced customer experience by fostering a community-driven model where customers contribute to the brand’s evolution. User-generated content and feedback are integral, and social media influencers and beauty bloggers act as introduction specialists, organically promoting the brand and engaging with customers.
What role do social media influencers and user-generated content play for Glossier?
Social media influencers and user-generated content play a crucial role for Glossier by increasing brand visibility and authenticity. Influencers introduce the brand to new audiences, while user-generated content provides real-world validation and engagement, making customers feel more connected to the brand.
How has Oura implemented elements of the experience supply chain in their business model?
Oura has implemented elements of the experience supply chain by utilizing third-party manufacturers for hardware production while focusing on software innovation. This collaboration allows them to focus on their core strengths and deliver a high-quality product without managing every aspect of production internally.
What contributions do third-party manufacturers make to Oura’s customer experience?
Third-party manufacturers contribute to Oura’s customer experience by ensuring the production of high-quality hardware. This partnership enables Oura to concentrate on enhancing their software and user experience, ultimately providing a superior product to their customers.
How does Stripe act as an experience connector and capability contributor for other businesses?
Stripe acts as an experience connector and capability contributor by providing the infrastructure for seamless digital transactions. They enable businesses to offer smooth payment experiences, which are crucial for overall customer satisfaction, while allowing those businesses to concentrate on their primary offerings.
Why do you believe embracing the experience supply chain is crucial for businesses today?
Embracing the experience supply chain is crucial because it allows businesses to adapt to the complexity of modern customer interactions. By focusing on collaboration and orchestration, companies can ensure that each customer touchpoint is optimized for engagement and value, leading to better customer satisfaction and loyalty.
What steps can companies take to start developing their own experience supply chain?
Companies can start by mapping out their current customer journeys and identifying key touchpoints. From there, they should determine which roles they can effectively manage and which require external collaboration. Establishing partnerships with contributors who can enhance specific aspects of the experience is essential.
How can focusing on where companies add the most value benefit their customer experience strategies?
Focusing on where companies add the most value allows them to optimize their resources and efforts where they make the biggest impact. It ensures that their strengths are leveraged effectively while collaborating with other ecosystem players to fill gaps, resulting in a comprehensive and engaging customer experience.