Customers are more easily disappointed than ever, so refining the customer relationship in this digital era takes precedence, according to Thunderhead.com’s Engagement 3.0: A New Model for Customer Engagement.
The report contains fresh customer research and a proposed framework for redefining customer engagement in the age of digital transformation. The Engagement 3.0 framework is based on in-depth research of 2,026 customers in the United States, supported by detailed market and academic research in addition to 33 in-depth interviews with senior leaders of customer strategies including C-suite executives.
Here are some key takeaways from the report:
Customers are more easily disappointed than ever. Over half (58%) say they’ve seen no improvement in their relationship with businesses in the past three years.
Customers are quicker to judge businesses critically and are less willing to forgive. A quarter (25%) say they will switch providers after just one negative experience and 20% of customers say it takes more than a year to re-establish trust with a company after a mistake or error. A similar number (19%) say they will never trust the company again.
Customers are more prepared to act decisively when their relationship with a business takes a turn for the worse. Nearly one third (33%) say they will share a bad experience online, on the phone or in-person with an average of 25 people.
What’s more, the report uncovered three major challenges that undermine a company’s ability to improve interaction with their customers and build authentic engagement:
Communications are irrelevant and impersonal−82% of customers feel being treated with a one-size fits all approach results in a negative perception of that business; 16% regard such a mishap as grounds for considering a change in providers; and 12% would definitely change as a result.
Businesses are struggling to keep pace with customer expectations−93% of customers say failing to act quickly enough would reduce their opinion of the business; 24% would consider changing providers as a result; and 13% would definitely change.
Disjointed communications caused by company silos presents a major challenge. A large majority (85%) of customers feel negatively toward businesses that require them to provide information multiple times and 27% say it would make them consider leaving for a competitor.
The report makes the following recommendations for businesses to empower effective customer journeys across all channels, unifying silos that may exist:
Remove organizational barriers to managing the customer experience. Address the obstacles that prevent the delivery of experiences throughout the entire customer journey.
Ensure the business is learning from every interaction in every channel. Monitor customer behavior and interaction and use insight to inform and enhance the customer experience.
Consolidate customer insight and ensure it is transparent. Provide systems to all departments giving them access to real-time information about customer interactions that are personal and context-aware.
“Restoring the customer relationship back to its pivotal position at the heart of business is the strategic imperative for today’s enterprise, and is at the frontline of digital transformation,” Glen Manchester, CEO, Thunderhead.com, said in a press release. “As a pioneer and leader in the emerging customer engagement market, we are driving a new and disruptive era in CRM. With cloud technology designed for business users, our Engagement 3.0 framework and customer managed journeys, enables businesses to build enduring customer relationships at scale.”