Last year was a stressful year for everyone due to the pandemic. With COVID-19, people’s behavior in almost every area, from shopping habits to where and how they work, has changed. This change is not the product of coincidence or time. We see many consumption habits that have been in our lives for a long time, such as online shopping, but that increase their effectiveness with the pandemic. In the words of Baiju Shah, CSO of Accenture Interactive, who participated in the session “Pivot to Growth: The Business of Experience” at SXSW 2021, a experience We have entered a renaissance.
– SXSW (@sxsw) March 10, 2021
For this reason, companies are looking for ways to “recover” from the effects of the epidemic and start growing again with the advent of vaccines. But most companies find that their growth formulas must change, perhaps completely redesigned.
This change is a great opportunity for companies that are not only observing customer expectations, but are ready to change form, to establish a more meaningful relationship with their customers and employees. According to the Accenture Innovative study, 80 percent of CEOs think that the way companies interact with their customers needs a radical change. So in which direction should this radical change go? What to do when the traditional growth formula does not work?
Shah says they have defined a path that focuses on experience.
The concept called customer experience (CX) is not new. However, according to Shah, this new path requires the adoption of the “experience-oriented business” (BX) model, where customer experience is the focus of the entire business, going beyond the traditional concept of customer experience, where customer behavior is emphasized. . Contrary to the traditional concept of customer experience, this model is based on the company-wide goal of providing specific customer experiences. These experiences must respond to the new, often unmet and changing needs of customers.
Experience-Driven Business, an evolution of the customer experience, is a more holistic approach that enables organizations to focus on the customer and stimulate growth. The customer experience is within the jurisdiction of the marketing manager (CMO) or the chief operating officer (COO); Because BX is connected to all aspects of the company, it sits on the board as a top priority for the CEO.
“In our research, we interviewed 1,550 executives (about a quarter of the CEO) in 21 countries in 22 industries. We have seen organizations that adopt the practices we define as important to BX have increased their earnings rates at least six times a year compared to their industry peers. saying.
A living example of BX is Farmers Insurance. They have launched a new renters insurance platform called Toggle, from the ground up, taking an in-depth look at the new lifestyle needs and attitudes of Gen Y. Toggle, which applies not only to insurance, but also to safety and security. usually; has managed to create a differentiated service that stands out from the rest.
So what is required to provide this “tab”? According to Shah, there are four ways to follow:
- Companies must obsess over customer needs and use this data as a compass. “You have to become an organization that listens,” he says, and as you do so, you need to collect data to understand what people are saying and how they behave. By integrating traditional market segmentation with contextual mindset research, it provides a unique way to predict what potential customers will do in different situations and why.
- Experience says that we should think of innovation culture as an onion with three main layers: feature, service, and business. “Each provides a platform for the next,” explains Shah. By creating this culture, he says, you can see if it matches the promises it offers with the experiences it offers, and if there is a gap, you can close it.
- It highlights the fact that expertise should no longer be the responsibility of a single department, and everyone should focus on this issue. “When the customer experience is designed to meet the needs of the business rather than the customer, it is doomed to be inadequate,” he says.
- Invest differently, not more. Integrate technologies and tools necessary for customer focus. Shah recommends starting by building a fast infrastructure with the cloud. The AI-based data can then be reinvested to improve performance.
Marketing Manager Allison Peterson leads a similar roadmap at Best Buy. While Best Buy has always been focused on the customer experience, we strive to take it to new heights every day, Peterson says.
“I can say that staying in tune with the customer as much as possible and even getting into a position where we can anticipate their needs in advance is half of our job. We constantly monitor the heart rate, ”he explains. “We ask ourselves: What are the wishes of this client? How are your needs changing and how can we meet these changing needs? We know that expectations will get higher and higher every day and we have to keep improving to meet them. We encourage all organizations to adopt this point of view. “