The increase of digital also means that companies will have more dynamic data at their fingertips. This article was written collaboratively by the global leaders of the McKinsey Customer Experience Practice, a group that spans different regions and includes: Constance Emmanuelli, Nimish Jain, Nicolas Maechler, David Malfara, Stefan Moritz, Kevin Neher, Adrian Nelson, and Anna Thomas. We'll email you when new articles are published on this topic. Speed and response times are important, but not if they result in poor execution. 0000001856 00000 n In the next normal, winning companies will capitalize on opportunities to adapt to evolving customer behaviors, deliver short-term business success, and strengthen their long-term strategic positions. 0000007114 00000 n Please use UP and DOWN arrow keys to review autocomplete results. McKinsey research found discretionary spending has fallen 30 to 60 percent, and retail transactions have dropped by 20 to 50 percent. Students as Customers: The New Normal in Higher Education Bea González | Vice President for Community Engagement, Syracuse University Delivering an exceptional customer experience is no … We strive to provide individuals with disabilities equal access to our website. Flip the odds. 0000005489 00000 n We use cookies essential for this site to function well. Select topics and stay current with our latest insights, Elevating customer experience excellence in the next normal. Companies that accelerate their digital offerings can see increased engagement now—digitization forces simplification, which customers love—and be prepared for lower-cost operations in the years ahead. Please try again later. Investments in these types of comprehensive, predictive, data-driven systems could allow organizations to gather insight and respond more quickly to customer needs during times of crisis. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. An active online community of owners augments Tesla’s customer support. An early application allowed the team to respond to delays and cancellations more effectively. Success in digital channels also has the potential to reduce the costs for in-person sales and increase reach: the greater shareability of virtual experience enables satisfied customers to become advocates. Nearly all organizations, whether traditional companies or start-ups, are reorienting their business models to be more digital. If they can’t, they end up churning through current customers and burning funds finding new ones. To win in the next normal, companies need to identify the current behaviors that will define customer experience in the near term. The benefits of good customer service take many forms but the best is its impact on your bottom line. Here are three ways you can add value to your own customer experience and start building an above-average NPS of your own: Empower Employees Not to Take a Customer… xref Customer experience is a top priority to businesses for the next 5 years and the reason is simple; the companies that focus on customer experience reduce churn and increase revenues - leading to higher profits! And on top of it all, companies need to figure out new ways to create a differentiated customer experience. As companies seek to ensure that their products and services are firmly positioned in the right-hand quadrants, they will have to balance competing factors. 0000004481 00000 n Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. 0000011350 00000 n Connected and empowered like never before, customers’ expectations have skyrocketed. Now is the time to make investments in the data, technology, and systems required to deliver exceptional experiences in a rapidly changing environment. These efforts require executives to reimagine and reform customer experience through thoughtful, targeted investment, starting with three priorities. 174 0 obj <> endobj hÞbbRf`b``Ń3Îî 0 EMT Three … Such concerns have led customers to rapidly change how they want to engage with the world, with safe and contactless operations a top priority. 0000001697 00000 n Customers are spending significantly more time online: nearly half of consumers have started or increased online streaming since the onset of the pandemic. ... Elevating … 0000035943 00000 n Through integrated engagement methodologies, Pico+ seamlessly blends digital, mobile, gaming, social media … 0000030099 00000 n Subscribed to {PRACTICE_NAME} email alerts. 0000008819 00000 n tab. Customers are significantly scaling back their spending across nearly all categories, anticipating tougher times ahead. Each organization will pursue these priorities differently based on its industry and starting point as well as competitive landscape. She is the author of the new book "The Customer Of The Future: 10 Guiding … Testing and Learning for Customer Experience Excellence. In April 2020, Flex sales grew by more than 80 percent. endstream endobj 175 0 obj <>/Metadata 38 0 R/Pages 37 0 R/StructTreeRoot 40 0 R/Type/Catalog/ViewerPreferences<>>> endobj 176 0 obj <. The impact of COVID-19 on customer behavior has been sweeping and immediate. The next normal will be anything but static. The customer experience landscape is evolving with each passing week, so companies can’t “set it and forget it” and still expect to stand out. Led by HBS thought leaders who are experts in customer experience management, this program delves into the fundamentals of leading and managing service-oriented businesses. Less than a half of b2b … 0000004255 00000 n In many cities, customers can now have their cars repaired via a mobile service or car pick-up. Companies that invest in the wrong capabilities could find themselves on the outside as competitors that can offer exemplary customer experiences cement their advantage. Among the most vexing challenges is determining which customer behaviors and trends are here to stay and which ones will eventually recede. August 18, 2020 ... Elevating the Customer Experience: A Case Study. Digital upends old models. As the crisis peaked across Western economies, more than one-third of Europeans and Americans said their income has been negatively affected by COVID-19. Together, this mix will continue to evolve and form the foundation of the next normal. startxref Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. 0000025529 00000 n They should focus on creating a virtual, digital experience that is on par with—or even better than—the in-person experience. Beyond contactless operations: Human-centered customer experience May 19, 2020 – As we look forward to the next normal, consumers are already demonstrating a preference for companies that deliver great service while reducing risks all along the customer … For example, convenience will continue to be a priority for consumers, but people are also craving the return of quality engagement. With these insights, they can provide more meaningful interventions to sustain and build customer confidence while increasing customer lifetime value and reducing cost to serve. Some companies have expanded their digital capabilities by evolving their portfolio through M&A or by divesting lower-potential holdings. Successful companies have used an agile, iterative approach and design thinking to identify new digital opportunities beyond their comfort zone. 174 40 In any case, great brands take a test and learn … 0000010622 00000 n Three priorities will be key. These companies also emphasize digital opportunities that strengthen the core business and lay the groundwork for a larger digital transformation. If you would like information about this content we will be happy to work with you. What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries The state of AI in 2020 Por otra parte, el camino a seguir durante el recorrido más largo, que denominamos “nueva … In immediate response to the pandemic, some companies instituted policies to safeguard customers. Blake Morgan is a customer experience futurist. ... now the foundation for Agile Design or when High levels of human service delivery are looked at as a retro approach to customer experience strategy. 0 Around the world, companies have moved quickly to accommodate the massive shift to digital channels. To expand their virtual presence, companies will need to assess their capabilities and then determine how best to augment them. Overall spending is expected to decrease by 50 percent across all consumer categories, but certain shelter-in-place necessities will rise: groceries (up 14 percent), entertainment (up 13 percent), and household supplies (up 3 percent). The numbers tell the story. The authors wish to thank Abhishek Kumar Gupta for his contributions to this article. The wave of products and apps to meet coronavirus-specific demand may soon oversaturate the market, and we are likely to see standout offerings rise to the top while others fail to capture significant traffic. Pico is a global leader in total brand activation specialising in engaging people, creating experiences and activating brands. On the employee side, Kroger instituted a “hero bonus” raise for frontline employees working during the pandemic. By acting based on predicted customer sentiment and outcomes, the airline was able to more effectively focus its effort on customers that were most at risk of defecting and achieved an 800 percent rise in customer satisfaction and a nearly 60 percent decrease in intent to churn. Never miss an insight. Pico+ addresses the challenges arising from a constantly shifting marketing landscape. Consumers who get accustomed to this new contactless world may not be inclined to return to high-touch commerce and crowded stores—even when health officials deem it safe. 0000004367 00000 n Companies that capture all customer data, not just that of survey respondents, will gain a more accurate view of customer needs and expectations. 0000025970 00000 n collaboration with select social media and trusted analytics partners With a consistent commitment to enhancing their core customer experience, it recently sold to Unilever for $1 billion. In business, customer experience is a battlefield. This is "VRSCE2020 Day2: Technical Session 2 - Elevating Customer Experience Excellence in the Next Normal" by ExpoSim on Vimeo, the home for high quality… By developing and prioritizing risks based on safety as well as operational and financial risks, companies can develop a road map and execute immediate and longer-term solutions. Customers will continue to recalibrate their expectations for safety during the pandemic, so companies must respond accordingly. Many companies are competing solely on their ability to find customers and keep them satisfied. Customers can use an app to handle all requests, from onboarding to service, roaming, and package changes. 0000002722 00000 n Elevating customer experience excellence in the next normal by McKinsey Customer Experience Practice Accountability • Execution • Generations • High Performance Teams • Leadership. We believe three priorities will define customer experience in the post-pandemic era: digital excellence, safe and contactless engagement, and dynamic customer insights. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. 0000008377 00000 n We reveal 11 examples of customer experience strategy best practice in business today. These movements are accompanied by diminished foot traffic in retail outlets and an increased reliance on convenience-focused digital channels. From December 2019 to March 2020, Tesla saw its sales in China double while other carmakers experienced a 50 percent drop over the same period. The situation continues to change by the week and can vary dramatically by region. For many, customer service and customer experience … 213 0 obj <>stream Executives who had carefully crafted omnichannel strategies to create unique, compelling customer experiences have had to throw out their playbooks and improvise to keep pace. Has implemented a range of measures to meet the increased expectation for during!, iPad, or Android device to expand their virtual presence, for example, could partner online! And associated public-health policies have normalized physical distancing and the need for sanitation! 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