Customer Experience – Your North Star or just another overused worddrobe staple?

What exactly does omnichannel customer experience entail, and how do you ensure a good experience? Jake Sorofram from Gartner wrote a list of the most overused terms in 2014, and even three years ago customer experience and omnichannel were on that list. Today these terms are thrown around as often as the phrase “Google it” and every other firm promises the best customer experience within their industry. The problem with these worddrobe staples are that as standalones they are vague to say the least, and when put together they can mean pretty much anything, anywhere, at any point in time.

But as customer behavior becomes more measurable thanks to an increasing number of touchpoints throughout the customer lifecycle, an increasing amount of data, and fast developing advanced analytics, we should perhaps consider defining these terms in a more concrete way, and talk about them as we would with other business terms. Omnichannel Customer Experience is not an umbrella for everything fluffy that falls outside of traditional business framework nor is it a single department’s responsibility. It is a strategic choice that needs to be managed and developed based on data, albeit not excluding the feelings and culture it is partially born from. The sooner we realize this, the more firms stand to gain.

In 2015, at Talent Vectia we conducted a study on how firms perceive, develop and manage customer experience. In the study, we found that 95% of firms collect data on customer experience but only 30% make decisions based on their findings, and a mere 10% base development work on the data they collect. So, there are not small improvements to be done on this front, but rather a change in mindset and an understanding for how we can benefit from the growing data available to us today in developing the omnichannel customer experience.

Customer Experience is the sum of all interactions regardless of if they are on- or offline. This means customer experience is always omnichannel, and should be viewed and developed as a whole. Identifying and defining key interactions with the customer and understanding how they influence the overall experience is key in Sephora’s customer experience strategy. They have recognized that to support the non-linear purchase process and preferences of their customers, they need to understand how customers interact with the company and create content based on their customers behavior patterns, not try to change how their customers behave. This also means the data flow between channels needs to be flawless.

In-store interactions have been boosted by digital payment and barcode scanning to connect customers to product reviews by other customers and support in purchase decisions. Digital payment not only speeds up the buying process but has been shown to double the amount and frequency of purchases. Barcode scanning enables customer to feel supported when choosing products even when Sephora’s employees are not available.

On-the-go interactions make up over one third of Sephora’s website traffic. That is why they have enabled customers to track purchases, view offers, and redeem reward points easily on the go. This extends the Sephora experience and helps the brand remain on the top of customers’ minds. Sephora has also identified that customers often have more time while accessing their site from home. Therefore, the at home online experience has more branded co-created content and articles on beauty trends to inspire, encouraging consumers to share and connect, when they have the time to do so.

Perceived customer value is the difference between perceived benefits and sacrifices. To understand and develop The Customer Experience, you must understand what this equation means for your customer base. This means you can increase customer value either by increasing benefits or decreasing sacrifices, as Starbucks has done in such an exemplary fashion. When Starbucks first set up shop outside Pike Place Market in rainy Seattle, they noticed most of their customers came by for a cup of coffee just before they headed off to work. Perhaps it was the benefits of great coffee and being able to choose from a variety of ready-made breakfasts, or perhaps it was the decrease in sacrifices such as having to buy coffee beans, brew coffee at home or spend time making that egg sandwich. In addition to selling coffee, Starbucks has become the neighborhood gathering place, helping people make the most of their day and everyday life a little easier.

This has meant understanding their customer base and their everyday rituals, and tailoring themselves to become an extension of these rituals. Starbucks locations for instance, are very different depending on location and customer base. Close to schools and universities shops resemble labs for group work or libraries, in big downtown areas they are optimized to be fast take-away spots, and in smaller towns an extension of your living room where you can small-talk with your barista while lounging on a cozy leather couch. All customers have to do is show up and reap the tailored benefits Starbucks has to offer. Easy.

Starbucks listens closely to its customers and continuously makes small improvements to its services to make them more convenient for their customers. Last year they enabled customers in a hurry to order ahead and pay via the Starbucks app. This meant customers no longer have to wait in line to order and pay. Pick-up is made easy so customers do not even have to interact with staff if they do not feel like small talking before 7.00 AM. Cards are also reloadable online so for instance parents can reload their kids Starbucks card from work or on the go.

Both Sephora and Starbucks have with the help of data gained incredible understanding of their customer base, from how they behave in different environments to the very different needs of different segments. They have developed and tailored their Customer Experience as a whole based on these insights, but prior to that they have made a very clear choice. A strategic choice to invest in creating and constantly iterate a good Customer Experience.