Complacent about customer experience? Your competitors aren't

Just for fun, go to http://search.twitter.com and search for the name of your local cable provider. You may come across tweets such as these:

Iced into my house and now the cable AND Internet goes out. Thanks Time Warner- you guys are the best. And by best-- I mean HORRIBLE.

Or this…

I can't stand RCN Cable I've called twice about my cable issue was disconnected the 1st time and nothing was done the 2nd time.

Or even…

Shutting down the Internet in Egypt? That's nothing, Time Warner shuts down cable TV in Los Angeles every night! #frozen pixels

Ouch!

Cable providers often face little competition relative to businesses in other sectors of the economy. As a result, it often seems that there is little effort by these companies to create a positive customer experience. In turn, customers are very vocal about their frustrations – as we’ve just seen.

By contrast, the latest Forrester Research survey on customer experience management finds that those companies that focus on customer experience tend to succeed – even in a crowded marketplace. For example, hotels and retail stores (companies that typically face lots of competition) gain repeat customers and strong word of mouth when they focus on creating positive, memorable customer experiences.

Forrester compiled its information by surveying 7,700 customers about 154 companies. The respondents were asked three questions about those businesses:
1) How well did they meet your needs?
2) How easy were they to do business with?
3) How enjoyable were they to do business with?

You can read the full report of their findings here, but here are a few quick observations about the survey results:

• Be alert to the financial benefits of investing in customer experience for your business! According to Forrester’s research, 66% of customers found their experiences “okay” or “poor.” That means those customers will relish opportunities to find a better experience that is worth their dollars.
• There is a good opportunity for new entrants (where possible) in the industries with low competition who focus on the customer experience. Can you say “blow the remaining competition out of the water?”
• There is a good opportunity for companies to gain more market share or revenue by focusing on positive customer experiences, even in a crowded marketplace. Look at the stories and buzz around companies that wow customers. Just consider some of the stores and brands that you evangelize. For example, I love Costco. (Not surprisingly, it’s one of the top 10 best companies for customer experience according to Forrester’s research and a Consumer Reports reader survey ranked Costco as America's best retail store.) When I recently purchased a laptop from them but didn’t like the one I chose, there weren’t any hassles when I returned it. They also offer a warranty and returns time frame for the computer that is at least twice other retailers. And all with a genuine smile.
• Competition drives a better customer experience. You know when another company enters your space you have to hustle to keep your customers. Be proactive, don’t just wait for competition to take your customers – start your focus on customer experience now so you are poised when threats come your way.

In the meantime, keep an eye on Twitter to gauge how your customers are responding to their experiences with your business.