The 'it' Factor: What’s the Difference Between a Good Service and a Good Experience?
Earlier this month, I participated in a BIF workshop conducted by BIF Research Advisor Jeneanne Rae of Peer Insight. It was all about how to design a superior customer experience. I wrote a big wrap-up piece which you can read here, but I thought I would also dole out a few easily digestible nuggets of insight here through the blog.
First up, what's the difference between a good service and a great customer experience?
Did you know that eighty percent of Starbucks’ revenues come from customers who visit their stores an average of 18 times a month? That’s the difference between providing a good service and a stellar experience. It's orchestration across the entire business model (See my earlier blog entry about Larry Keeley to see what that entails.) Essentially, at the core of this orchestration, is a tightly woven framework based on a customer-centric brand vision, empathetic research and optimized IT Systems.
“Service innovators have to consider the ephemeral,” said Rae, “and that’s a change in mindset wholly different from the current way of doing things. Building an experience is sensorial. We engage the senses through see, hear, smell, taste and feeling. This is a radical shift away from a corporate culture dominated by Six Sigma management theory.”
Turning ordinary into extraordinary is no easy feat. But when done right, you end up with a “virtuous cycle of profitability” because:
1. It creates differentiation. Although seemingly obvious, It’s why Target stands out from all other mass merchandising retailers.
2. It promotes a raving fan mentality. More than just positive buzz, raving fans can be a powerful tool to generating revenues. Just ask Mini Cooper.
3. It fosters intense loyalty. Having the ability to rely on a core base, makes it easier, says Rae, to “increase both the top and bottom lines.” Just ask the Threadless guys.
4. Consumers will pay premium prices. Consumers will pay more for an emotionally rewarding experience. “Companies that are skilled at unlocking emotional issues, then creating economic value propositions that win with consumers, avoid commodization,” said Rae.
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Read the entire event recap here.
Posted June 14, 2007 12:13 PM by Chris Flanagan | Permalink
