Customer experience does not occur at a single point in time, nor is it the responsibility of a single team. We find, time and again, that creating an improved customer experience must be orchestrated across an organization, with an integrated view of all experiences.
But, that’s a massive undertaking, you might say. It is, but can be gained in steps.
Let’s take a look at three challenges and three types of outcomes we’ve seen in our research in the last few years.
Improve customer retention by being proactive
Wireless telephone companies know there is a high cost to reacquiring lost subscribers. It costs five times as much to acquire a new customer as it does to retain one. So, it becomes vitally important to keep existing customers satisfied. Customers who are about to leave often send signals, for example by contacting customer service more frequently, or allowing usage to drop or even failing to pay a bill. The key to getting ahead of churn is to predict behavior.
A service provider can identify customers at risk for churn if it takes advantage of data it already has. The first step is to understand who is leaving and why. Tracking service cancellations and applying analytics can help predict who is most likely to cancel. The company can then target its retention offers better. Here is one example:
XO Communications uses predictive analytics to identify and target customers. The service predicts behavior and proactively reaches out to customers with a high likelihood of leaving. In the first year of deployment, XO reduced churn by 8 percent, with an additional 18 percent the following year.
Use consumer insights to enhance your customers’ lives
People rely on electronic devices to stay in touch, provide entertainment, maintain their health, and to travel across town and across the globe. Connected devices like smart phones, gaming consoles, and in-home health monitors provide the digital lifestyle consumers demand. These connected devices also generate massive amounts of consumer data. As more and more devices come online, the amount of data will increase exponentially.
Some electronics manufacturers—and new players entering the market through digital convergence—are using insights generated from massive customer data to redefine the product and service development process and deliver the ultimate customer experience.
One television manufacturer demonstrates the value of such partnerships. Their devices are equipped with pre-configured connectivity out of the box, providing access to one of the widest selections of entertainment and content in Europe the moment it is turned on. Thanks to its ability to take customers beyond a passive viewing experience, they can sell more televisions while also profiting from advertising, placement, sponsorship and revenue sharing.
Getting ahead of the incident
Maintaining public safety effectively demands proactive planning and decision making. To enable action, government agencies must ensure that information is understood and shared appropriately.
Many agencies capture and store enormous amounts of historical data. Yet, they do little to use that information proactively. Understanding historical trends and patterns is an important input to management reports and decision making. When that is combined with tools and techniques that can project trends and predict outcomes, an agency can be more effective in strategic planning, allocating resources and responding to incidents. For example, analytics can enable an agency to understand the potential impact of a public demonstration, a sewer leak, or a natural disaster – and then act appropriately to prevent or mitigate it.
By sharing insight and intelligence with other agencies, the benefits of this competency increase. Duplication of effort can be reduced. This can improve the speed of response, while reducing costs.
“I’ve seen it in action when you highlight the nature of the kind of responses that you’re going to commit your officers to, when you increase their presence based on crime statistics… you can drastically impact the response times and reduction of crime.” – Former Chief of Police, U.S. County Sheriff’s department.