Executives are spending a lot of time talking about CEx, but it's not a dirty word.
Customer experience, or CEx, involves measuring consumers' changing behaviour and expectations - and is one of the biggest challenges facing brands and organisations.
"We talk about a data revolution or a technology revolution but what we are really talking about is a customer revolution," says Rob Limb, managing director of TRACK, the Auckland branch of a global network aiming to grow businesses by improving the way they connect with customers.
"Customers have chosen to shop differently and they have higher expectations from brands and organisations they engage with. Those expectations are not just set by the category you're in, such as banking. They're set by people such as Amazon, Uber, Google and Netflix.
"It's absolutely imperative that, whatever sector you're in, you rise to that level of expectation," Limb says.
In partnership with Camorra Research, Track recently published the first NZ Customer Experience Index, a benchmark study designed to understand how New Zealanders rate their experience with more than 60 of the country's major organisations. It covers financial services providers including banking, credit cards and insurance; telecommunications providers including mobile and broadband; and electricity providers.
Track's head of strategy, Andy Bell, says most New Zealanders have a relationship with companies in those sectors and their products require ongoing service - so were a natural starting point.
Customers were invited to rate their experience with their provider across three dimensions similar to those used in international studies: efficacy, effort and emotion. They also rated two key outcomes - the likelihood of recommending a provider or to churn (move to another brand).
Limb says: "Our report shows a very strong correlation between the three key things we measured and those outcomes of 'churn' or 'recommend'. The banking and financial sector is quite significantly ahead of many others - broadband and mobile sectors are towards the bottom.
"Around the world banks have invested hugely in what they need to do to improve basic, routine interactions. They've also put a lot more of their services online, which may create some headlines about branch closures, but it means they can better control the customer experience online.
"On the other hand, some broadband providers are prey to things outside their control, like the speed of the fibre roll-out."
Bell and Limb stress it's important for organisations to treat the customer experience as a "human journey" rather than just a business, marketing or technology issue.
Limb: "It's really important to put human behaviour first, before technology and before data, because that behaviour frames your approach to your technology and data strategies.
"While data is massively valuable there's no substitute for observation and listening to what customers say and what they need and what they want."
Bell: "If, as an organisation, you don't have the ability to empathise and stand in the customer's shoes, then the outcomes you generate are less likely to be the ones customers value and which provide the highest return for the business.
"Rather than, 'The customer is king,' it's 'Empathy is king' - understanding how customers feel, where their pain points are and what they need from organisations."
Limb suggests companies should begin improving customers' experiences by finding a problem that affects both the business and its customers.
"Then you are going to find that sweet spot. Once you have done that, take time to map the journey your customers are on, through the lens of the customer. That can not only help you identify their journey and pain points, it can also help to improve the business."
He cites an organisation that has - literally - mapped its customers' journey end to end. If there's one industry where online service is followed by human service, and heavily invested with emotion, it's air travel.
"Air New Zealand are ahead of most if not all organisations in New Zealand when it comes to mapping the journey and designing processes to improve the customer experience, both at a one-to-one personal level and their digital experience."
For executives who fear another flood of spreadsheets, Limb sympathises: "Businesses are often swimming in data. I would say that over 80-90 per cent use data simply related to helping companies deliver a more targeted sales message.
"But if the overall experience is lagging behind, no one will be listening to your message. What we don't see enough of in New Zealand yet is people using that data to enhance the customer experience."
Bell continues: "The flip here is going from, 'How can I make my selling more efficient?' to, 'How can I help my customers buy?' You can get them there but if it's not easy to buy, they won't."
Or they may visit a site once and not return - and may pass on that experience to friends and relatives. It's becoming clear, says Limb, that businesses without that urgent focus on the customer will fall behind those that do.
