The 80/8 Customer Delivery Gap

Turns out customers aren't getting what they want, yet companies believe they're providing an excellent customer experience. Bain & Company recently surveyed 362 firms and found that 80% believed they delivered a "superior experience" to customers. But when the customers were surveyed, only 8% said they were really delivering. Eight percent!

This grand canyon of delivery gaps doesn't exist because businesses aren't recognizing the importance of their customers. More than 95% of surveyed management said they're customer focused.

According to Bain, there are two reasons for the gap. The first is based on the disruptive innovation paradox. "Most growth initiatives damage the most important source of sustainable, profitable growth- a loyal customer franchise." [BIF a-ha moment here: we're the real-world test lab where you can experiment with growth initiatives without damaging your customer relationships!]

And the second reason, according to Bain, is that good relationships are hard to build, and even harder to keep. "It's extremely difficult to understand what customers really want, keep the promises you make to them and maintain the right dialogue to ensure that you adjust your propositions according to customers' changing or increasing needs."

Bain put out a good white paper, Closing the Delivery Gap, which outlines steps organizations can take to achieve customer-led growth.

And a few bloggers have been pointing to a Jim Barnes article about how to create that WOW customer experience. It's a good read because Barnes provides a real-life customer experience example with AVIS rental.