By Kayleigh Fitch-Oracle on Nov 23, 2015
By Jeff Lundal, Group Vice President, Oracle Service Cloud
There are several known pain points keeping today’s Chief Marketing Officers (CMO’s) up at night. And let’s be honest, the pain points haven’t changed that much over the years. For instance, how do I quickly and effectively grow customer retention and brand loyalty? How do I increase brand advocacy? How do I show my Chief Executive Officer and Chief Financial Officer solid return on investment regarding marketing spend?
Just as the Head of Customer Care strives to deliver impactful service across new and evolving experience channels with an ever shrinking budget, the CMO must quickly deliver measurable customer and revenue results for minimal marketing spend.
Adding to these traditional complexities, the CMO is now confronted with the rapid evolution of today's empowered consumer. This makes the jobs of current CMOs even more complex as they struggle to determine how best to attract and retain both new and emerging customer personas. Think about the millennial who is not only proficient at interacting across traditional and new channels, but expects immediate recognition and satisfaction.
So how do CMO’s successfully meet their best customers when and where they reside? And what if your brand delivers a terrible experience? Rest assured that the rate with which consumers will drop your brand or stop using your product will astound you! Don’t believe it? Well in fact, 89% of customers have switched brands due to a bad customer experience.1 This is a scary proposition for any organization. Why should CMO’s care about Service? It comes down to a few key things…
Service is no longer just a department, it’s an engagement
If a brand’s online customer service experience is the ‘front door’ to their business, then why is service so often relegated to the back end “complaint” department? Especially when according to Mike Johnston, from The Chartered Institute of Marketing, research shows that “it can cost up to 30 times as much to get a new customer as it does to keep an existing one. It pays to stay very close to your customers, so you know their exact needs, today and tomorrow. Your aim is to be irreplaceable as their supplier." For modern brands, relegating the service department to an afterthought is a strategy for disaster. The key to success is a customer engagement strategy that is will set your business apart. This is a fundamental change and is the starting point for CMO’s looking to differentiate their brand.
Your brand is not defined by your message. It’s
defined by the experiences you deliver.
Millennial buying power is growing rapidly and they are taking full advantage of the varied modern technology landscape including SnapChat, Twitter, and peer communities. So now more than ever it is not what you, the marketer, are saying about your brand, but what your customers are saying about your brand. And customer brand advocacy begins with exceptional service, not marketing messages. Gartner outlines it pretty clearly, “Today's customers own the conversation they are having with your organization. They are more self-reliant and self-sufficient than ever before, wanting to take care of business via their preferred mode of engagement whenever convenient.2
Delivering an impactful personalized service experience in today’s digital landscape is a smarter and more cost effective marketing approach for modern brands. Something as simple as including personalized chat during the acquisition process can drive a 33% rate in conversion. In addition, Gartner research shows that over 75% of customers prefer to use self-service and that they expect a self-service option in the different engagement channels.2
Understanding the experience at every brand, customer
touch-point is crucial.
No matter how successful a marketing organization you are, if you are losing customers out the back door due to poor experiences your reputation and revenue suffer. No one within the organization knows customers’ engagement habits, pain points, and moments of delight more than the service team. They can share valuable insights from across the social, mobile, and web experiences that will inform new, relevant marketing campaigns. Partnering with service from the beginning also helps to ensure the marketing and service experiences are connected. Delivering an exceptional, seamless experience from the back end systems directly to your digital front door is crucial. A unified experience across touch points reduces customer frustration and builds brand loyalty.
According to Gartner, during the next five years, 25% of leading companies will extend their CRM technology goals by tying together disparate systems in a more holistic approach that pivots around the needs of the customer. For example, the customer service contact center has evolved into a customer engagement center with the goal to support social media, such as Facebook and Twitter, as well as online community activities. Other departments such as marketing, digital commerce and sales will join with IT leaders to develop plans for the CEH. In 2015, only 5% of organizations have the technologies and processes in place to provide a consistent customer experience across departments and channels. The need to support the anytime-anywhere customer (including on mobile devices, smart devices, and in social networks) and heightened business awareness is making this a top issue among customer service managers.3 So imagine the power of teaming with service from the word ‘go’ to deliver an integrated customer engagement.
Whether you are flying on Virgin America or buying a gift at Nordstrom, customers can experience how some marquee brands are delivering on best-in-class service. There is an undeniable credibility that comes with a great service experience. It also costs companies dearly to regain a customer after they have lost them, more so than it does to keep current customers happy. So next time you are thinking about how to solve some of these CMO dilemma’s think how to partner with your service organization as a first step to achieving retention, advocacy, and ultimately sales revenue goals.
1 “Global Insights on Succeeding in the Customer Experience
Era” Oracle, February 2013
2 Brian Manusama, “Best Practices for Implementing Customer Self-Service” Gartner, September 11, 2015.
3 Michael Maoz and Jenny Sussin, “Hype Cycle for CRM Customer Service and Customer Engagement” Gartner, July 17, 2015.