March 23, 2017
Improving the Customer Experience Drives Stronger Business Performance Across Markets (Q4, 2011).
At Osprey, we're continuing our multi-year study of the link between customer experience focus and improved business performance. In the prior quarter (Q3/2011), we tracked service category leaders including Singapore Airlines, Virgin America, Apple, JetBlue, Avis, and Starwood Hotels.
Each of these category leaders has sharpened their focus on the customer experience despite slow pockets in their respective markets. Each has maintained its business performance edge by nearly every measure despite increased sensitivity by consumers on pricing.
What can we learn from the successes of market leaders during an economic downturn that can be applied to other companies and sectors? The answer is that it pays to focus on enhancing the customer experience but to do so in a more cost-efficient manner..
The correlation between superior service and favorable brand perception is strong. But truthfully, the answer to how companies ought to invest their resources is broader and more complicated than that.
Our research and field work show that consistently delivering an emersive, interactive and personalized customer experience correlates with strong financial performance. Doing that requires a thorough understand of customers' needs, wants, and expectations as well as mastery in cost-effectiveness.
Yet many companies have only a shallow understanding of what their customers prefer and have even less insight on how to transform their touch points to influence customer behavior.
One thing is clear: few drivers have greater impact repurchase intention than service perception, whether it’s delivered by the Web, phone or in-person. The customer experience is crucial to peak, sustainable business performance and the reasons are evident.
This is the realm where operating costs, sales revenue and workforce productivity converge, creating some of the toughest business challenges and offering the most promising opportunities that organizations face today. Yet this is where the most promising performance opportunities are found.