3 CX Myths That Can Kill Your Brand

1. CX MYTHS THAT CAN KILL YOUR BRAND
2. Luke Williams HEAD OF CUSTOMER EXPERIENCE @ QUALTRICS lukew@qualtrics.com LukeWilliamsCX
3. AND A MYTH THE NEW BRAND.- Steve Cannon, CEO Mercedes Benz
4. CATASTROPHIC SERVICE FAILURES ARE WORSE THAN ORDINARY ONES MYTH 1
5. HAPPY CUSTOMERS EQUALS HEALTHY COMPANIES MYTH 2
6. BRAND MARKETERS ARE IN CHARGE OF THE BRAND MYTH 3
7. AND A MYTH
8. AND A MYTH
9. AND A MYTH
10. AND A MYTH
11. AND A MYTH lukew@qualtrics.com LukeWilliamsCX

Notas del editor

We hear so much about CX today that it’s becoming difficult to separate fact from fiction.
I’d like to take 25 minutes to help dispel some common misunderstandings or myths and help set you on a solid path for CX success in 2018.
I’m Luke Williams and I’m Head of Customer Experience (CX) at Qualtrics.
I’m a statistician and methodologist by training, and I spend a fair amount of time writing and speaking on various topics including customer experience, client satisfaction, client loyalty, client ROI, strategy, and analytics. I’ve had works published in various marketing journals, trade publication and business new outlets like Inc Magazine & Harvard Business Review.
I’ve written a few books and am an award-winning researcher and author of the New York Times bestseller, “The Wallet Allocation Rule,” and “Why Loyalty Matters” and I’ve created many case studies including for the Harvard Business School.
I’m a member of the Market Research Association (MRA) and CXPA and I have an M.A. in Research Methods from Durham University in England.
So enough about me, let’s jump into our task at hand: the top CX myths that can hurt your brand.
A great myth that comes from my great home - NEW YORK CITY… the myth that a penny thrown from the Empire State Building could kill someone.
Terminal Velocity >> DISTANCE
1 gram
not aerodynamic
50 FEET
Terminal Velocity >> SPEED
30mph / 45-50 kmph
volleyball
We are prone to believing myths because…
Part of the myth is often true
The part of the myth that is true makes the UNTRUE parts more believable.
THERE IS NO COST IN BELIEVING THESE MYTHS
HOWEVER, in the business world, there are true costs and dangers in believing myths.
The risk is DISRUPTION when someone discovers a myth isn’t true and engineers an advantage from it.
The outcome of such disruption can be shifts in money and revenues, market instability, loss of jobs… and if you live in the United States, losing your job could mean losing your health coverage.
Example, Global Financial Crisis. Predicated on 2 myths:
The US housing market would always increase in value
People working in the financial sector understood the financial sector.
Customer Experience is the next point of differentiation
post manufacturing differentiation
90% of companies compete primarily on the basis of customer experience
in 2014, >73% of CMOs put customer loyalty and customer experience as a Top 3 priority.
where is that NUMBER TODAY?
THE RISK OF MYTHS IN CUSTOMER EXPERIENCE IS EXTREMELY HIGH.
We’re all experts in this room, we don’t have a unified definition.
allows myths to sneak in under those talk tracks
And I think some of the myths affecting Customer Experience right now… can really surprise you!
MYTH: We naturally assume that the bigger the service failure the bigger the impact. This myth likely originates from our knowledge of the physical world: Throw a small pebble into a large puddle and get a little splash; but throw a huge rock in that same puddle and an exponentially larger disruption occurs. So it seems natural to us that huge failures can do much more damage to your brand than little ones. As it turns out, the exact opposite is true.
FACT: Catastrophic failures are overwhelmingly unique and sporadic; humans reject non-pattern data as anomalous. In terms of a brand, a stream of little failures -- or systematic failures -- can cause even more damage than an epic failure.
EXAMPLES:
Airline example. United passenger. LEAVE b/c routes, on-board experiences. Take an example from a 2017 headline where an airline passenger was assaulted by airport security aboard an airliner after the passenger refused to be “re-accommodated.” The result? The airline’s stock plummeted by nearly $1 billion almost overnight. But just a few months later, the stock was up 10% versus the pre-incident price. Is this the market rewarding criminal behavior? No, this is the market ignoring anomalies. But little failures stick in our minds, constantly reminding us of a firm’s failure to delight, and ultimately cost the company significant customer lifetime value. What is the brand promise of an airline, really? They don’t promise not to crash the plane (even though doing so would be a catastrophe) simply because it’s an anomalous incident largely out of their control and could happen to any other airline with a similar level of probability.
Rather, what they do promise is a great flight experience: Flights that routinely run on time, employees that aren’t rude, smooth landings, and infrequent lost or damaged bags. Alternately, making a habit of forcibly removing passengers from the aircraft or breaking expensive guitars? Not a great look, and it will damage the brand.

4. FOCUS on SERVICE RECOVERY AS DIFFERENTIATED EXPERIENCE
AMEX
CAVEAT: If catastrophic repeats, the brand identity changes.
HURTS: <<DES MOINES IOWA>>The biggest CX failures, though, is where we lay attention, scramble teams and issue recovery campaigns. But it's ordinary failures that drive the business into the ground.
MYTH: Although it may seem counterintuitive, happier customers aren’t always the most valuable for a company.

This is one of the toughest myths to accept, but data show no direct correlation between customer satisfaction scores and company performance. Some very healthy firms have unhappy customers and vice versa, and there is simply no straight line between customer experience, firm health, and financial growth.

What does this look like in action?
In August 2001, Kmart was flying relatively high and solid with a $13.16 stock price, and the brand’s customer satisfaction scores were at an all-time high. But by January 22, 2002, the world’s 3rd largest discount retailer had filed for Chapter 11 bankruptcy, blamed in part on competitors like Walmart and Target. While the former cornered the market on penny-pinchers, the latter appealed to a more fashion-forward yet wallet-conscious audience. Kmart failed to adapt in a timely manner and, in many cases, simply couldn’t galvanize interest even as power names like Martha Stewart were tapped to appeal to suburban and rural housewives on a budget.
The reality is that two things drive customer behavior: (1) the number of brands a consumer uses, and; (2) their relative satisfaction with each of the brands you use. So when a customer gives you an “8” as their satisfaction score, that’s only a good result if your competitors are scoring lower for that same individual.

FACT: Some important things to note…
Drivers of…
Satisfaction
Behavior
COMCAST, WALMART, United
Two things drive SOW and CLV
Usage Set Size
RELATIVE satisfaction
SPEAKER GIG
2 versus 15 speakers
my “9”
Vanguard
Examples…
Walmart
B2B, bigger contracts, ec.
5. DRIVER DIFFERENTIATED EXPERIENCE IS HOW YOU MAKE FOR THE HEALTHIEST COMPANY
MYTH: The days when marketers controlled the brand perception, messaging, and equity are long gone. Customer experiences can have a significant impact on the brand and the bottom line. By monitoring and analyzing customers’ likes and dislikes, needs, wants and behaviors, valuable insights are gained to help companies understand how to increase share of wallet, while understanding who may churn and who could potentially become an advocate.
Customer experience has been called the “new marketing.” The goal should be to reinforce positive customer behaviors while simultaneously figuring out how to connect marketing to customer experience, thus enabling a more holistic approach to business strategy.
The customers of today aren’t one-dimensional creatures who will remain loyal to a brand year after year just because that’s the way it’s always been done. On the contrary, today’s savvy, empowered customers are researching, discovering, and purchasing services and products that provide an end-to-end experience where they are in the driver’s seat.
If you’re at the helm of CX for your organization, it’s an exciting time; yet it will be challenging as companies of all shapes and sizes struggle to connect the dots between sales, marketing, customer experience, and market opportunity. Avoid believing these myths, and instead spend time focusing on key drivers of your customer’s behavior as well as what you can actually control: relative satisfaction and your competitive usage
These myths hurt us in three ways:
financially.
missed purchases and profits…prevents us from acquiring out-sized market gains
increased costs… by spending money on the wrong things, servicing customers in inefficient or ineffective ways
674% ROI ACCORDING TO FORRESTER for experience-focused view of the world.
strategically.
fail to provide convincing insights… delivering with a whimper
failure to differentiate the brand >> WITHOUT A SUSTAINABLE, DIFFERENTIATED EXPERIENCE, THE MORE LIKELY WE ARE TO BE DISRUPTED
Firms using an XM View of the World will capture 674% ROI
research and use tools that distill truth from myth.
talk to your customers. think about metrics in a different way.
x+o data. FORCE AN HOLISTIC PERSPECTIVE.
share the wisdom and find new ways of influencing.
Aesop's story of the wind and the sun.
3. pressure to act, advance and iterate. allow your understanding of CX to be nimble, open and fluid.
programs stagnate when biggest choking poinbt for debunking myths is people afraid to act on the truth and change how they do business... it feels foreign. it has risk of being a failure that brings shaming,... try it, test it, measure it, keep going.

3 CX Myths That Can Kill Your Brand

Estás leyendo una previsualización.

Eche un vistazo a continuación

3 CX Myths That Can Kill Your Brand

Más Contenido Relacionado

Más de Qualtrics (20)

Más reciente (20)

3 CX Myths That Can Kill Your Brand

Notas del editor

3 CX Myths That Can Kill Your Brand

Estás leyendo una previsualización.

3 CX Myths That Can Kill Your Brand

Recomendado

Más Contenido Relacionado

Más de Qualtrics (20)

Más reciente (20)

3 CX Myths That Can Kill Your Brand

Notas del editor