Oracle's Mark Hurd and the Customer Revolution: 10 Top Insights
By BobEvans on Jul 25, 2012
Businesses that fail to focus on customer experience will hear a giant sucking sound from their vanishing profitability. Because in today's dynamic global marketplace, consumers now have the power in the buyer-seller equation and sellers need to revamp their strategy for this new world order.
So, the ability to relentlessly deliver connected, personalized and rewarding customer experiences is rapidly becoming one of the primary sources of competitive advantage in today's dynamic global marketplace. And the inability to realize that the customer is a company's most important asset will lead, inevitably, to decline and failure.
Welcome to the lifecycle of customer experience, in which consumers explore, engage, shop, buy, ask, compare, complain, socialize, exchange, and more across multiple channels with the unconditional expectation that each of those interactions will be completed in an efficient and personalized manner however, wherever and whenever the customer wants.
With its new customer experience solutions, Oracle believes it can help companies unravel these challenges and move at the speed of their customers. Many of these capabilities are an integral part of the recently unveiled Oracle Cloud and its social relationship management tools, which give Oracle customers the ability to move seamlessly with their consumers across the full spectrum of marketing, selling, commerce, service, listening/insights, and social and collaboration tools for employees. For more on the company's plans see, " Oracle Cloud: Larry Ellison's Top 10 Reasons You'll Want It. "
Oracle recently launched its customer experience solutions at an event in New York City, during which Oracle President Mark Hurd analyzed the customer experience revolution taking place and presented Oracle's strategy for empowering companies to capitalize on this important market shift. Learn more about Oracle Customer Experience solutions.
From Hurd's presentation and related materials, here's a list we've pulled together of the top 10 insights into the Customer Revolution. Except where noted, the source for these findings is the 2011 Customer Experience Impact (CEI) Report including a survey commissioned by RightNow (acquired by Oracle in March 2012) and conducted by Harris Interactive.
1. Please Don't Feed the Competitor's Pipeline!
After enduring a poor experience, 89% of consumers say they would go immediately to your competitor.
2. The Addressable Market Is Massive.
Only 1% of consumers feel their experiences always match their great expectations.
3. They're Willing to Pay More!
In return for a great experience, 86% of consumers say they'll pay up to 25% more.
4. The Social Media Megaphone.
After suffering through a poor experience, more than 25% of consumers said they posted a negative comment on Twitter or Facebook or other social media sites. Conversely, of those consumers who got a response after complaining, 22% went on to post positive comments about the company.
5. The New Deal Is Never Done: Embrace the Entire Customer Lifecycle.
Oracle says an appropriately active and engaged relationship extends across the linear stages of need, research, select, purchase, receive, use, maintain, and recommend.
6. The 360-Degree Commitment.
Customers want to do business with companies that actively and openly demonstrate the desire to establish strong and seamless connections across employees, the company, and the customer, says research firm the Temkin Group (from “The 4 CX Competencies”).
7. Understand the Emotional Drivers Behind Brand Love.
What makes consumers fall in love with a brand? Among the top factors are friendly employees and customer service reps (73%), easy access to information and support (55%), and personalized experiences, such as knowing what consumers have purchased in the past and what service issues they've raised (36%).
8. The Importance of Immediate Action.
You've got one week to respond: If it takes you longer than that to answer a customer's question or request, the majority will terminate the relationship.
9. Want More Revenue, Less Churn, and More Referrals?
Then improve the customer experience—Forrester's research says that led to revenue gains of $900 million for wireless service providers, $800 million for hotels, and $400 million for airlines.
10. The Formula for CX Success
Oracle says it requires three elegantly interlaced pieces: Connected Engagement, to personalize the experience; Actionable Insight, to maximize the engagement; and Optimized Execution, to deliver the value.