Categories
Gain & Retain®
May 13, 2021
Classifying CX Initiatives – Part One
Do your CX initiatives focus on these three core areas?
by Ken Roberts
The approach for prioritizing initiatives varies by the job to be done. Initiatives aligned to brand building should be assessed differently from initiatives attempting to iron out a clunky user experience. CX initiatives generally fall into three buckets.
The Initiatives Buckets
The authority for CX programs is usually found in the organization’s customer retention objectives. There are three primary ways that a customer can be lost.
- The organization fails to keep pace with competitors causing the relative value of the offer to diminish, and sooner or later, customers notice.
- Through service failure, the organization pushes the customer away. It is usually successive failures although, it might be one mighty push.
- The customer is lured away by a competitor that has raised its reputation for an attribute high on the list of value for money (price, quality) drivers.
Consequently, when it comes to retaining customers, there should be three initiatives buckets. Those that relate to:
- competitive parity
- retention
- brand building
The CX Initiative Buckets
| Initiative | Discussion |
|---|---|
| Competitive Parity |
Service optimization initiatives are designed to retain customers by keeping the offer contemporary. Competitors’ activity and market adjacencies alter customer expectations. These changed expectations can result in a reduction in the relative value of the existing offer. Investing in optimization initiatives does not always grow the organization’s prosperity; however, it keeps the service contemporary and fit for purpose, therefore, aiding retention. |
| Retention |
Service performance initiatives are designed to retain customers by removing experiences that result in defection. Service Performance initiatives arise from an examination of the customers’ interaction with the organization. Taking the customers’ perspective enables the organization to measure the service performance deficits and propose initiatives for improving those experiences that primarily drive defection. |
| Brand Building |
Brand building initiatives are designed to retain customers by matching acquisition promises with experiences. In the pursuit of acquiring new customers, promises are made to the market. Brand-building initiatives are the link between marketing and operational performance. It becomes the responsibility of the organization to ensure such marketing promises are honored and that customer experience matches the promise. |
In the three subsequent parts to this series, each of the groups of initiatives will be discussed.
Photo by sarah tatton on Unsplash
Comments
Comments are moderated to ensure respect towards the author and to prevent spam or self-promotion. Your comment may be edited, rejected, or approved based on these criteria. By commenting, you accept these terms and take responsibility for your contributions.
Disclaimer
The views, opinions, data, and methodologies expressed above are those of the contributor(s) and do not necessarily reflect or represent the official policies, positions, or beliefs of Greenbook.
More from Ken Roberts
The Greatest Challenge Between Insight and Creative
Discover the future of advertising with GenAI revolutionizing the way ads are created. Embrace the momentum and explore the trajectory of this technol...
Caution: GenAI will Deliver Bad Creative Faster
Explore how GenAI is set to replace creative writing and revolutionize the industry. Dive into the power of AI and its impact on process, inputs, and ...
Is Your Marketing LLM Fit for Purpose?
Discover GenAI, the large language model driving our proprietary AI algorithm. Embrace the future of marketing creativity and the advertising industry...
First Impressions in CX are Almost EVERYTHING!
Explore the correlation between the beginning of the customer experience journey and overall satisfaction. Find out how to prevent negative impacts on...
Sign Up for
Updates
Get content that matters, written by top insights industry experts, delivered right to your inbox.
67k+ subscribers