Beware the new reality: Marketing is no longer in control of your brand. Rather, customer experience (CX)—the actual experience your customers are having—is.
Because customer expectations are at their highest levels, CX has superseded customer service and branding to become a key driver of retention and acquisition. Consequently, a brand’s success hinges on creating personalized experiences and delivering them in an authentic manner that resonates with customers and makes them feel valued and appreciated.
Astute and innovative companies are swiftly diverting significant budgeted dollars from branding and marketing initiatives toward CX. In this new paradigm, customers dictate all aspects of their relationship with your brand, thanks to the ubiquitous mobile, social and web technologies. In the words of customer service expert Jack Mackey, “You can say what you want about who you are, but people believe what they experience.”
Gartner defines CX Management as “the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty and advocacy.” CX is the emotional representation of how your audience perceives your brand. It is about listening to your customers and acting accordingly. Delivering a successful CX is crucial for an adviser for the achievement of three key strategic goals: (1) Drive customer loyalty; (2) create brand evangelists who will promote your brand; and (3) attract and retain new assets.
Make CX Your Best Product Offering
When it comes to competing on CX, engagement is of paramount importance. Consequently, begin by making CX the best product your firm provides. Make your message memorable, entertaining and valuable, and leverage any available client data to extract maximum value from the interaction at any touch point of the sales journey.
To create a powerful and effective CX, you must ensure that your clients’ offline experience matches the online one. For the latter, the use of video is of paramount importance. Consumers’ thirst for video seems unquenchable and marketers are responding in kind. Video, far better than words, appeals to the visual and emotional part of a consumer’s brain, thereby facilitating a better and faster understanding. Most important, video establishes an emotional bond that even the best-written material cannot achieve. (For more details, read my InvestmentNews article, “Use Video to Connect with Clients.”)
Five Ways to Improve CX
Any CX must be able to deliver highly targeted and personalized messages to your audience at the correct touch point. I suggest five basic steps that advisers can take to create a meaningful and rewarding strategy that will help them improve client satisfaction, expand their book of business and increase revenue:
1.) Establish your vision
The easiest way to define your vision is to create a set of statements that act as guiding principles and that will drive the overall behavior of your organization. Every member of your team should know these principles by heart and they should be embedded into all areas of training and development.
2.) Become customer-centric
Put your customer first, and at the core of your business. Becoming customer-centric means you use any client data available to better understand your clients, and align your business growth strategies and policies with their needs. This is not only a sound business strategy but, as a Deloitte and Touche research pointed out, it also empowers a company to become up to 60 percent more profitable.
3.) Listen to the voice of customer (VOC)
The secret to attract and retain clients and assets is not fees or products, rather it is the CX that an adviser offers. Consequently, taking into account the voice of customer (VOC) is of crucial importance. VOC—a term coined by Abbie Griffin and John R. Hauser in an MIT Marketing Science paper—is the process of capturing client’s feedback to formulate a detailed understanding of their requirements. Customer feedback is an invaluable asset for an adviser. It provides crucial intelligence to gauge what works and what needs improvement. VOC allows you to leverage one of the skills clients value the most: your willingness to listen.
4.) Build an emotional connection
In the words of consultant Simon Sinek, “People don’t buy what you do, they buy why you do it.” Ergo, make emotional connections with your clients your competitive advantage! The best customer experiences are grounded in emotional connections. Scientific research confirms that emotions shape attitudes and drive decisions. Loyalty is directly correlated to a customer’s emotional attachment to a brand. According to an article titled “The New Science of Customer Emotions,” in Harvard Business Review, “When companies connect with customers’ emotions, the payoff can be huge.”
5.) Deliver omnichannel customer experiences
Clients are expecting from you the same level of multichannel engagement they receive from companies like Amazon and Zappos. To be effective, your omnichannel engagement must go beyond the mere distribution of information through different channels and match clients’ preferred means of communication. The line between online and offline engagement is blurring fast and consumers demand engagements that allow them to seamlessly switch channels or devices while interacting with your brand.
Consumers have developed high expectations as a result of interacting with brands that offer them a user-centric CX. Advisers should switch their focus from customer service to CX as a way to prove to their clients a genuine commitment to customer satisfaction. Allocating time and resources today to deliver an engaging and compelling CX will put advisers ahead of the curve and position them well to cash meaningful dividends for years to come.
Claudio Pannunzio is the managing director of Cürex Group Holdings. He was formerly the president of i-Impact Group Inc. in Greenwich, Conn.