Customer Insights

SESSION VII

Learning Outcome:

Understand the customer experience

 Assessment Criteria

At the end of this session you should be able to:

• Apply the concepts used to understand a customer’s experience
• Describe how digital technologies are influencing customers’ expectations
and behavior
• Explain how digital technologies are improving marketers’ abilities to
manage customer experience
 Customer Experience

Moments of Truth:
A concept in customer experience management that represents any interaction,
typically at any point in a customer’s journey, when critical events occur, during
which a customer may form or change an opinion/impression about an
organization, brand, or offering. These may result in either positive, or negative
experiences
While designing a user’s experience, the aim is to ensure that moments of truth
have a positive impact on the customer/consumer. There are moments when long-
term relationships between an organization and its target market can significantly
change, for better, or worse. By supporting and developing the frontline emotional
intelligence of its employees, organizations can ensure more of these moments have
a positive outcome
 Customer Experience

Moments of Truth:
Moments of truth, when handled well, can contribute to superior service delivery
and customer satisfaction; factors that will, in turn, drive the cycle of business
profitability and development
There are four major types:
• Zero moment of truth
• First moment of truth
• Second moment of truth
• Ultimate moment of truth
 Customer Experience

Moments of Truth:
Zero moment of truth:
A term coined by Google to take into account online user behavior. It
describes the first possible moment of contact between an offering, brand,
or organization, and the customer. When a customer identifies a problem,
they now search for information online, looking for a solution, or to learn
of possible solutions. They then make decisions about the offering, brand,
or organization in that instance
 Customer Experience

Moments of Truth:
First moment of truth
This occurs when a potential customer comes into contact with the offering,
brand, or organization for the very first time, and makes an opinion about it.
It’s the impression they form when they see and interact with the offering
for the first time, and begin to learn about it. Marketers should concentrate
their efforts on this moment to turn potential customers into actual
customers
 Customer Experience

Moments of Truth:
Second moment of truth
Represents all subsequent collection of moments in an ongoing customer
relationship with the offering, brand, or organization. These are the things
that a customer experiences e.g., sees, hears, touches, learns etc., about the
offering, brand, or organization over the lifetime of this relationship
Ultimate moment of truth
This occurs when a customer’s experience with an offering leads them to
start sharing their experiences with others, through content, expressing
their use and engagement with the offering. This becomes a form of
advocacy for other people to find and share, thus, creating many more zero
moments of truth
 Customer Experience

Moments of Truth:
Emotional intelligence is key for organizations to develop the ability to connect and
help customers at key moments. According to McKinsey’s, Emotional intelligence
typically manifests itself through four intertwined characteristics:
• A strong sense of self-empowerment and self-regulation, which together helps
employees to make decisions right on the spot if it’s necessary
• A positive outlook, promoting constructive responses to the challenges of work
• An awareness of your own and other people’s feelings, creating empathy and
facilitating better conversations with customers
• A mastery of fear and anxiety and the ability to tap into selfless motives, making
it possible for employees to express feelings of empathy and caring
 Customer Experience

Moments of Truth:
Organizations need to act on four environmental levers which can significantly
influence front line employee’s emotional intelligence:
• Creating meaning and clarity of purpose for people in the frontline, thus,
addressing their thoughts, feelings, values, beliefs, and emotional needs
• Improving the capabilities of employees and influencing their mindsets so
that they acquire the right emotional skills
• Putting structures, reward systems, and processes in place to back up these
changes
• Enlisting frontline leaders to serve as role models and to teach emotionally
intelligent behavior
 Customer Experience

Critical Incidents:
These refer to events, both positive and negative, that customer’s or consumer’s
experience while interacting with the organization and its offering(s). These
events (incidents) have a significant impact on the perceptions of an
organization and the way a business conducts itself (determining behavior in
the future)
These incidents typically lead to the development and establishment new
policies and procedures or the redefinition of existing ones. They can be used to
improve customer experience through e.g.:
• Uncovering opportunities for organizational improvement
• Exposing areas where the organization could be at risk
• Identifying training needs
 Customer Experience

Critical Incidents:
Critical incidents are typically not the ‘everyday’ interactions the
organization has with its customers/consumers, rather, they are especially
negative or especially negative experiences that the customers/consumers
recall
These experiences are usually viewed from the customer’s/consumer’s
perspective i.e. customer focused i.e. experiences that are either especially
good, or especially bad for an organization’s customers/consumers
It’s important for organizations to recognize these incidents as they present
opportunities where they can learn from their customers/consumers leading
to improvement of customer experience
 Customer Experience

Critical Incidents:
Examples of such incidents may include, but not limited to:
• Emotional outbursts from employees interacting with the customer
• Service well beyond the expectations of customers and scope of duties
• Service well below customer expectations and scope of duties
• Events that result in disciplinary action against employees
• Events that lead to lawsuits filed by customers against the organization
• Events leading to extraordinary recognition and praise from customers
 Customer Experience

Critical Incidents:
Learning from critical incidents
Organizations can strive to learn from such incidents by considering:
The event that caused the incident
The event can either be positive or negative and identifies where the
incident was experienced. This is by asking what did the organization do
to cause the critical incident?
The organization’s current processes
This involves examining the organization’s existing policies and
procedures that are related to the incident at hand. This includes
examining the team’s knowledge and application of these
 Customer Experience

Critical Incidents:
Learning from critical incidents
Organizations can strive to learn from such incidents by considering:
Determining the root cause
The idea here is to examine what exactly caused the incident to occur by
examining the application of the laid out policies and procedures to
determine if there was any breakdown or difference in application
resulting in the occurrence of the incident
Determining the follow-up
After understanding how the policies and procedures were applied, one
can then determine how to take corrective action (in the case of a negative
incident), or intergrate the action (in the case of a positive incident)
 Thank you!

Any Questions?