Using the Model

The principle behind using the model is that you identify and choose 1-3 key issues or opportunities that would improve the total customer experience across each phase of the model. This approach would generate a list of 8-24 opportunities that you could work on that would improve upon the existing total customer experience.

Here are some examples of how we used the model at HP.

1)      We used the model to improve our understanding of how customers used our LaserJet printers in emerging markets. We learned that many customers buy lower end products and used them like higher performance products in high dust/dirty environments. These combination of factors lead to increased product failures and some customer dissatisfaction. By better understanding this, we could improve the way we developed products for emerging markets. Perhaps by offering a different product platform or attaching dust/HEPA filter to printers sold there.

2)      We also used the model to create printer-based MFPs that would deliver a better total customer experience than existing copiers coming from established companies like Xerox or Oce. HP wanted to enter this market, but we wanted to build a better mousetrap and have a more differentiated product. We looked at specific things we could improve on our product line that enhanced our existing customer experience as well as what was being done by our competition. As a result, we made changes in our product designs, usability, and messaging. Our changes worked and we achieved #1 market share in the IDC S4 monochrome speed segment. For example, when Xerox tried to emulate we were doing I was able to show how HP’s total customer experience was better in performance, installing, and using the product.

TCE reports help us understand quantitatively how hp and our competitors perform and compare at each of the lifecycle stages and touch points.  Areas for improvement were identified and projects initiated to close the gaps.

The way to use the model would be to decide how to improve or maintain customer experiences for a product in each of the 8 areas of the ACOILUSD model. It might look something like this.

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It is important to make an additional comment about B2C vs. B2B TCE models. They are virtually the same with one exception. Often times for consumer products, “USE”is broken into less than 30 days and more than 30 days. Here is the reason. If a consumer has a dissatisfying experience, he is likely to return the product to the retailer in the first 30 days rather than try to solve the problem. Therefore, companies must do everything that can to help a customer achieve a great customer experience in those crucial first 30 days. If a product breaks or the customer cannot use the product, it is highly likely he will return it and buy something else in those first 30 days.

The TCE model is also very steep in buyer psychology and behavior. The goal of any customer experience system should move buyers from emotional disloyalty (I hate it) and rational dissatisfaction (nothing special) to rational satisfaction (this works very well) and emotional loyalty (I can’t live without it). Properly done, it moves behaviors of loathing and functional to enjoyable and almost a Zen-like level of satisfaction. Wouldn’t that be a great place to be with your customers?

How do you measure success? In terms of measuring the results from improving customer experience, I propose three methodologies. The first is to actually compare your company’s TCE to the competition for the 8 segments of the wheel.  If your company’s experience is best in class in 6 of the 8 categories, chances are you are doing a great job. Other methods of measuring include looking at brand preference, especially if brand preference is significantly lower than brand awareness. If brand awareness is high and preference is lower, chances are something is happening in the sales process that needs to be looked at. It could be a variety of things – pricing, channel switching, not enough product differentiation, etc. In addition, I have found that the state of the TCE can also be a very big contributor. Finally, look at your company’s Net Promoter score. This is probably one of the best measures and can be used as a reliable and important measure of TCE success or failure.

Companies that don’t feel comfortable driving this process on their own can employ a third party to company to help them  with elements of their total customer experience. Companies like Frog Design and Touch360 are examples of firms that can help move a company down the road of improving their TCE.

In conclusion, total customer experience (TCE) is a powerful tool that can improve customer satisfaction, loyalty, and provide meaningful competitive differentiation for your company and its products. It is a significant commitment in both time and money and spans across many functional areas within a company – marketing, sales, channels, operations, product development, etc. At the same time, TCE initiatives are also a great way to engage the overall company in programs and activities that are extremely customer-centric and focused.

Please share your stories of total customer experience on this blog by replying to this post!

Additional Resources:

http://www.1000ventures.com/business_guide/crosscuttings/customer_retention.html

http://wehner.tamu.edu/mktg/faculty/berry/articles/Managing_the_Total_Customer_Experience.pdf

http://jobfunctions.bnet.com/abstract.aspx?docid=149049

http://www.ibj.ca/view_article.asp?intArticle_ID=299