08/09/2012 03:11 pm ET Updated Oct 09, 2012

Customer Experience Is Critical

We know that customer experience is critical. Many factors are changing the way companies operate today, creating a 'perfect storm' for those who need to manage how the customer interacts with a brand.

And these are not changes just linked to the Internet or technology, they are more fundamental market shifts affecting any company working directly with their customers.

  • There is more global competition
  • Products are becoming more commoditised
  • Traditional marketing is becoming less effective
  • Customers have higher expectations
86 percent of customers will stop doing business with a company after a single bad experience -- that's it, no second chances. Even more interesting is that over a quarter will use social networks to tell their friends about any negative experience and 4 out of 5 complaints to companies on those same social networks are just ignored. There has to be a better way. Think for a moment about these three important facts:
  • No. 1 reason to remain loyal to a brand is the quality of service
  • No. 1 reason to recommend a company to others is outstanding service
  • 86 percent of customers are happy to spend more for better service
Outsourcing customer service and just hoping it will work has become passé -- the experience the customer has when interacting with your brand is more important that ever because social networks have created a new channel for interaction and a new channel for fans and advocates to promote your brand.