TNS Blog

CXM BLOG 3: HOW DO YOUR CUSTOMERS FEEL ABOUT DOING BUSINESS WITH YOU?

October 10th, 2011

In my last post, I discussed a way to begin to unlock some of the strategic value inherent in all Customer Experience Management (CXM) programs. That approach required becoming truly customer-centric...understanding individual customer's needs and taking action at that level. We also, however, need to take into account how customers make decisions regarding the companies they do business with. Science is telling us that decision making is not very rational. It is, in fact, mostly emotional.

The earth is flat. The sun moves around the earth. We use our powers of reason to make decisions. All were strongly held beliefs...once upon a time. Today, neuroscience reveals that the emotional regions of the brain are very active when making a decision. Once a decision is made, however, the rational areas take over. It sure looks like we make decisions emotionally and then rationalize them. Like Plato's Cave, our current process-based survey approach is a shadow, a reflection of the rationalization process, but not necessarily of the decision process itself. Understanding customers' emotional states is as important as understanding their needs. This is where Dynamic Loyalty comes in.

Most relationships are habitual. You shop at the same grocery stores; you buy business supplies from the same providers; you're wedded to your mobile device. Eventually, however, disruption strikes. You see on the 11:00 news your grocery store has been charging more at check-out than the posted price (anger). Your business supplier stops carrying the printer cartridges for your older printer (irritation). You try your wife's new iPhone ("wow" - my own emotional response). Each of these experiences and the emotions they produce disrupts the steady state and influences decisions that will weaken or strengthen current business (or other) relationships. This perspective explains a phenomenon we're all too familiar with: Customers are loyal until they're not.

They tell you... "We really like doing business with you." "Just focus on doing what you're doing." "Don't take this the wrong way, but we're putting our business up for competitive bid - you can expect an RFP in the next few weeks." THEY LIED! No, they didn't. They really believed what they told you in your steady state relationship, but there was a disruptive event. (Management fed up with flat customer experience scores? New information found in a competitor's blog?) Either you create and manage disruption, or someone else will.

So if you're going to improve customer experience to drive your company's business performance, you have to find ways to meet customers' individual needs (drivers) and manage the emotional states (disruptions) that impact decision-making. That will require strong relationships, excellent performance, and engaged employees. Your CXM framework must reflect these components. I'll have more about that in the next post.

Until next time...consider this: Does this wider perspective reflect fundamental change in thinking about CXM...or is it just another dress on the CSAT mannequin?

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Curt Carlson is Senior Vice President, Customer Experience Management - TNS North America. Curt is responsible for supporting strategy development and Customer Experience-related business, which includes Customer Loyalty, Employee Engagement and Corporate Reputation. In the 20+ years that Curt has spent in Customer Experience-related research, he has also held senior positions at Walker Information, J.D. Power and Associates, and Ipsos Loyalty. Curt received his B.S. in Psychology from the University of Iowa, and his M.A. and Ph.D. (Experimental Psychology) from Kent State University. Curt has also presented at many US and International conferences and workshops including those sponsored by The Conference Board and EFQM, as well as by numerous clients. He is also a member of the Customer Experience Professionals Association (CXPA).