Abstract
The impact of increasing advancement in digital technologies is driving massive changes in contemporary business enterprises affecting every dimension of society, especially the way individuals buy, research, and interact with one another and with leading brands. This chapter explores case studies of specific leading brands to illustrate this principle with the purpose of better understanding how end-to-end customer experiences (CXs) can be maintained and improved. It begins with a detailed example of the cost of not adapting to the evolving changes in consumer behaviour, specifically the expectations of new generations of “digital natives” with a focus on the user experience (UX). This is followed by an analysis of six customer experience (CX) principles that deliver value, relevance, and superior CXs. Finally, this chapter highlights the importance of embracing a holistic customer-centric culture and offers valuable considerations for businesses seeking to make customer experience their new competitive advantage.
TopBackground
Three industrial revolutions and the rise of new technologies and novel ways of perceiving the world have together caused a deep change in modern economic and social structures (Schwab, 2016, p.11). In the contemporary milieu, autonomous vehicles, digital personal assistants, robots in restaurants and clinics, wearable technologies, smart homes, 3D printing, and voice activated devices are fundamentally changing not only the lives of individuals but also the way businesses operate. In fact, Jagdish Seth (1972) predicted that the theory of buyer behavior grows rapidly and broadens alongside these changes. Unfortunately, many companies today are not agile enough to reconfigure, re-engineer or adapt to consumer expectations and market demand or as fast as their competitors (Goodwin, 2018, p.2). For centuries big companies benefited by the advantage of their size, however the internet and the changes in business dynamics means that historical heritage is becoming more of a liability for brands as it makes the change and adaptation harder. Today, the main challenge for businesses is to deal with the repercussions of the ever evolving digital era: specifically, the loss of customer relationships, increased competition and the speed in which companies may lose their competitive advantage in this commoditized world (Ernst & Young, pp.1-8).
Key Terms in this Chapter
Touchpoint: A touchpoint is a way or channel that a customer can interact with a brand. Whether it is through face-to-face or through a digital form, be it a website, a mobile app, or any other form of communication.
Consumer Behavior: Consumer behavior is how customers decide to purchase, research and interact with a brand and its products. It also involves how needs and wants of consumers arise and how consumers make decisions to fulfill these needs and wants.
Digital Disruption: Digital disruption occurs when digital technologies adopted by smaller companies in a market are able to revolutionize the business model of bigger and more established organizations. Often this leads to a change in consumer behavior and expectations in a market.
Customer-Centricity: Customer-centricity is the approach of an organization to put its customers at the center of the business strategy. This approach is tied to delivering a positive customer experience.
User Experience: User experience is the perception of a customer when using a particular product, system or service.
Customer Relationship: Customer relationship is the development of an ongoing relationship between a company and its customers. This is measured by the level of customer satisfaction.