The customer at the center of Business: customer journey management

Paolo Capaccioni
Partner @ KPMG Advisory

Creating a precise map that is able to trace customer journeys helps companies to understand exactly what the motivations, emotions and potential frustrations with regard to the Brand are.

A map of the customer journey, generated by the various touchpoints that the customer has come into contact with, both physical and digital, is the key to understanding what the best customer experience is. The same customer journey “story” may become an effective tool to improve performance: the company may obtain useful indications to reduce costs and increase earnings.

This is what has emerged from the KPMG survey “The Connected Experience Imperative” carried out in the United Kingdom in 2017 by the Customer Experience Excellence Center – KPMG’s international think tank that supports companies in turning the best global practices in this field into concrete results for business.

Indeed, from the research, it emerges that brands that invest in the customer journey increase their earnings by 10 to 15%, reducing service costs by 15 to 20% at the same time. This occurs by completely redesigning the customer journey, starting with the removal of unnecessary phases, inefficiencies and duplications across all touchpoints (websites, call centers, operations and logistics).

Mapping the customer journey is fundamental, also in highlighting the “Delta Moments”, or rather, those moments of crisis or tension in which habits and rules are reconsidered by the consumer. For brands, they represent opportunities that are not to be missed to convince them to change their habits. On the other hand, these are precisely the moments when there is a greater risk of losing customers to the competition.

Only those who have studied and are aware of the evolution of consumer expectations know how to take advantage of the customer Delta Moments!

This is precisely why many brands have started to encourage them to speak about their purchases on social media in order to be able to collect important information to personalize and improve the purchasing experience, and, therefore, the other sales opportunities.

 

The more satisfying the customer experience, the higher the earnings

 

“The Connected Experience Imperative” survey tried to trace the relationship that exists between the customer experience and commercial results: it emerged that customers are attracted to companies that create unique experiences.

The higher the quality of the user experience, the more the financial performance increases. The earnings of the United Kingdom’s top 10 brands, where there is a large focus on this area, are four times higher than those of the last 10 brands in the classification.

For a company, maintaining a good level of sales comes from understanding customer needs and the ability to adapt to customer behavior in the short and long term and to whatever has to do with customer journey. Many brands are concentrating on a short-term product sales culture, but this can penalize loyalty in the long term. 

Indeed, the importance of customer satisfaction is not yet clear to brands: loyal customers are worth up to 10 times more than their initial expenditure, which means that it is worth keeping a loyal customer rather than getting a new one.

Even though a culture aimed at sales may initially seem more efficient in terms of financial performance, it is the customer centric approach that is more profitable in the long term. This is because it creates genuine and lasting relationships before and after sales, boosting business, loyalty and profits.

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The Connected Experience Imperative

 

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