Elevating customer experience excellence in the next normal Companies that make the right investments now could build an enduring advantage in serving customers. Its state-of-the-art digital showroom and virtual user guide offer customers an immersive online experience, and the contactless car delivery is tailor-made for the current environment. 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… 0000014466 00000 n 174 40 In fact, one-half reported reducing their spending in the past two weeks, and 40 percent of Americans and 44 percent of Europeans expect to continue spending less in the next two weeks. 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. Blake Morgan is a customer experience futurist. Successful companies have used an agile, iterative approach and design thinking to identify new digital opportunities beyond their comfort zone. Our flagship business publication has been defining and informing the senior-management agenda since 1964. McKinsey COVID-19 US Consumer Pulse Survey, April 2020. Customers are significantly scaling back their spending across nearly all categories, anticipating tougher times ahead. To respond quickly to a constantly changing environment, companies will need to have a broad base of employees that know how to empathize with the customer, apply customer insights, and redesign the experience through digital excellence and contactless engagement. Cô±Ö&Kåð Qf`‘f ‡/ŸärF Þ` 9áQÇ %%EOF tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Elevating customer experience excellence in the next normal 3 to be a priority for consumers, but people are also craving the return of quality engagement. These movements are accompanied by diminished foot traffic in retail outlets and an increased reliance on convenience-focused digital channels. These early movers offer a valuable point of reference for how to proceed. Simple adjustments, such as methods to facilitate physical distancing in stores, have already become ubiquitous, if not compulsory. The shifting customer behaviors brought on by COVID-19 reflect the acceleration of anticipated trends, the emergence of new preferences, and a complete reversal of some long-held routines. ... and it started by taking a look at the customer experience. With these lenses, we segmented activities into four quadrants: Fast accelerators, which include offerings such as telemedicine, have grown 91 percent since the pandemic hit, with 48 percent of consumers expressing an intent to embrace them in the longer term. Three … 0000005489 00000 n McKinsey COVID-19 US Consumer Pulse Survey, April 2020. 1 McKinsey on Elevating Customer Experience in the Next Normal June 4, 2020 As companies across the globe adapt—and even reinvent themselves—during the coronavirus crisis, … For many, customer service and customer experience … 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. August 18, 2020 ... Elevating the Customer Experience: A Case Study. 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. Customers can use an app to handle all requests, from onboarding to service, roaming, and package changes. They must then ensure that these opportunities are aligned with their business strategies and capabilities. Potential-to-stick services, such as wellness apps, have experienced comparatively slower growth but are the most likely to become embedded in the next normal. 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. Leading retailers have moved quickly to offer online ordering with delivery or safe pickup. Together, this mix will continue to evolve and form the foundation of the next normal. collaboration with select social media and trusted analytics partners For more, see “ Elevating customer experience excellence in the next normal ” and “ Adapting customer experience … 0000010622 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. Instead, executives should consistently monitor business trends—what is growing, stagnating, and declining—against their current business strategies to identify new opportunities in the fast-accelerator and potential-to-stick quadrants. Delivery companies have instituted touch-free packing and shipping as well as text notifications to avoid face-to-face contact. 0000025970 00000 n And on top of it all, companies need to figure out new ways to create a differentiated customer experience. An active online community of owners augments Tesla’s customer support. Blake is the author of two books on customer experience. And its partnership with Ocado to launch robotic grocery warehouses, initially rolled out a year ago, has enhanced its resilience. For example, convenience will continue to be a priority for consumers, but people are also craving the return of quality engagement. To determine where to invest, companies should first identify in-person interactions in their value chain that may need to be addressed. tab. Customers are spending significantly more time online: nearly half of consumers have started or increased online streaming since the onset of the pandemic. At the same time, demand for data and bandwidth have spiked; in fact, a recent review of web analytics reveals a fourfold increase in Google searches for “data plan upgrade.”. Pico is a global leader in total brand activation specialising in engaging people, creating experiences and activating brands. McKinsey research found discretionary spending has fallen 30 to 60 percent, and retail transactions have dropped by 20 to 50 percent. %PDF-1.4 %âãÏÓ Pico+ addresses the challenges arising from a constantly shifting marketing landscape. Through integrated engagement methodologies, Pico+ seamlessly blends digital, mobile, gaming, social media … Tesla’s sustained commitment to reinventing the car-buying process using digital has proved especially prescient. Please use UP and DOWN arrow keys to review autocomplete results. Learn about hereLearn more about cookies, Opens in new The Future 5 Customer Experience Trends For The Next 5 Years From pre-mortems to predictive analytics, companies are leveraging technology and new thinking to attract, acquire, and … Companies seeking to emphasize safety should focus on designing a contactless end-to-end journey, but with thoughtful human touches. Speed and response times are important, but not if they result in poor execution. Digital upends old models. If you would like information about this content we will be happy to work with you. The good news is that companies have the potential to not only guide future customer behavior through “nudging”—proactively encouraging behaviors that are likely to endure after the pandemic—but also position themselves at the vanguard of shaping customer experience in the next normal. Blake is the author of two books on customer experience. 0000013797 00000 n endstream endobj 212 0 obj <>/Filter/FlateDecode/Index[40 134]/Length 27/Size 174/Type/XRef/W[1 1 1]>>stream 1. The next normal will be anything but static. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Now is the time to make investments in the data, technology, and systems required to deliver exceptional experiences in a rapidly changing environment. Connected and empowered like never before, customers’ expectations have skyrocketed. Around the world, companies have moved quickly to accommodate the massive shift to digital channels. 174 0 obj <> endobj Please click "Accept" to help us improve its usefulness with additional cookies. 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. 0000004367 00000 n We strive to provide individuals with disabilities equal access to our website. 0000006170 00000 n For customers shopping in-store, the company offers Kroger Pay, a contactless payment tool rolled out before the pandemic. Grocery stores have designated certain hours for elderly shoppers. Our mission is to help leaders in multiple sectors develop a deeper … 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! 213 0 obj <>stream 0000006792 00000 n 0000029224 00000 n endstream endobj 175 0 obj <>/Metadata 38 0 R/Pages 37 0 R/StructTreeRoot 40 0 R/Type/Catalog/ViewerPreferences<>>> endobj 176 0 obj <. 0000029615 00000 n The situation … These companies also emphasize digital opportunities that strengthen the core business and lay the groundwork for a larger digital transformation. 0000004983 00000 n They should focus on creating a virtual, digital experience that is on par with—or even better than—the in-person experience. Most transformations fail. Companies that review the digital portfolio, map out core interactions on the value chain, and focus on key customer-experience issues will be well positioned to please customers regardless of how expectations and preferences evolve. 0000017817 00000 n 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. We'll email you when new articles are published on this topic. She is the author of the new book "The Customer Of The Future: 10 Guiding … xref You will explore new strategies for designing sustainable service models, addressing gaps in service execution, and delivering a transformational customer experience. Spending across most industries is down, purchases have shifted from in-person to digital channels, and public safety has become a top priority for companies and consumers alike. Three priorities will be key. Less than a half of b2b … For example, one food-delivery service includes the name of the person dropping off the meals, conveying that the company values the well-being of both employees and consumers. This trend is likely to continue. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. With a consistent commitment to enhancing their core customer experience, it recently sold to Unilever for $1 billion. 0000003217 00000 n hÞb```b``]ÏÀÆÀ p™Aˆ„X¢,§¶HP¾ »')(Ã8aÊËô=ȀÑ]a‚—΁³ŠË§-™xBE¨ÛÀ؏«qyâ´UK‚@lŽ"N–¬7ÛÒ¢’Ôu\a‚ÛÌi*S fIt€H&¥ôŽŽKIÊbRR6q3B 9֊ŽT§ Iž}@ZˆõÀFª}sÞAfë&C —e£ ƒC,ƒl #“Ã$Á¬˜uRÌx˜63œ:`8»€©‚Ù¦ÑÎAý£=ÃIÖÆý¬‹€!et.^Š!œA¬=‚ñ by Jay Bolling September 12, 2014. by David Zaritsky September 12, 2014. Blake is the author of two books on customer experience. Customers will continue to recalibrate their expectations for safety during the pandemic, so companies must respond accordingly. Companies that invest in improving their customer’s experience have seen, on average, a: 42% improvement … 0000004218 00000 n The study was based on companies with an average annual revenue of $1.08 billion, but across the board, organisations of all sizes can expect the business benefits of customer experience excellence to include increased customer loyalty and retention, reduced churn, higher lifetime customer … Elevating Customer Experience Excellence in the Next Normal As companies prepare for the long haul—what we refer to as the “next normal ”—the path forward is anything but clear. After all, the key to … ... Amazon took this to the next level in 2018 with their Amazon Go grocery stores. Each organization will pursue these priorities differently based on its industry and starting point as well as competitive landscape. Please try again later. 0000004255 00000 n Elevating customer experience excellence in the next normal by McKinsey Customer Experience Practice Accountability • Execution • Generations • High Performance Teams • Leadership. 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. She is the author of the new book "The Customer Of The Future: 10 Guiding … China, which is several weeks ahead of other countries in the COVID-19 crisis, has yet to see consumer spending return to normal. Nearly all organizations, whether traditional companies or start-ups, are reorienting their business models to be more digital. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. 0000008377 00000 n The pandemic’s massive health implications and associated public-health policies have normalized physical distancing and the need for constant sanitation. More than ever before, this is the time for organizations to invest in building these capabilities and taking advantage of all digital-learning tools that are now available to us. In any case, great brands take a test and learn … 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. One airline, for example, developed a data-driven system using machine learning to predict and act on customer satisfaction and revenue performance. Companies that have made these adjustments have clearly demonstrated their understanding of what matters to customers and their willingness to adapt. 0000002722 00000 n 0 Reinvent your business. Research done by customer … Even retailers without a strong digital presence, for example, could partner with online marketplaces or delivery services. Customers have lost loved ones, … To broaden its online reach in China, the carmaker partnered with Alibaba on a Tmall online store. Blake Morgan is a customer experience futurist. 0000004481 00000 n 0000007114 00000 n Constance Emmanuelli is an associate partner in McKinsey’s Paris office, where Nicolas Maechler is a senior partner; Nimish Jain is an associate partner in the San Francisco office, where Anna Thomas is a consultant; David Malfara is a senior expert in the Orlando office, Stefan Moritz is a senior expert and senior design director in the Stockholm office, Kevin Neher is a senior partner in the Denver office, and Adrian Nelson is a consultant in the Washington, DC, office. hÞbbRf`b``Ń3Îî 0 EMT Indeed, McKinsey research shows that most of customers’ main concerns about COVID-19 are related to health and safety, so companies must keep these issues front of mind as they plan their transitions to the next normal. The increase of digital also means that companies will have more dynamic data at their fingertips. 0000005591 00000 n She is the author of the new book "The Customer Of The Future: 10 Guiding … The foundation of b2b customer experience excellence is a commitment to putting the customer at the core of what the company does, how it does it, and ultimately why it does it. Customer Experience Mindset In The Age of COVID The COVID-19 - Coronavirus pandemic - will have a lasting impact on the state of the customer. cookies, McKinsey_Website_Accessibility@mckinsey.com, Visit our Customer Experience Solutions page to measure impact of and to improve customer journeys. On the employee side, Kroger instituted a “hero bonus” raise for frontline employees working during the pandemic. In many cities, customers can now have their cars repaired via a mobile service or car pick-up. A single bad experience is often enough to make someone leave. 0000004574 00000 n In business, customer experience is a battlefield. Some companies have expanded their digital capabilities by evolving their portfolio through M&A or by divesting lower-potential holdings. Use minimal essential Among the most vexing challenges is determining which customer behaviors and trends are here to stay and which ones will eventually recede. 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 … 0000022946 00000 n 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 … 0000025885 00000 n The environment and customer preferences will continue to evolve, so companies should be prepared to adapt, iterate, and operationalize changes across the organization. Companies that invest in the wrong capabilities could find themselves on the outside as competitors that can offer exemplary customer experiences cement their advantage. Digital channels will help companies both meet changing customer needs and expectations and prepare for future industry disruption. Companies that have already laid the groundwork prior to the crisis will have an advantage, but all organizations can make meaningful progress with careful decision making. This is "VRSCE2020 Day2: Technical Session 2 - Elevating Customer Experience Excellence in the Next Normal" by ExpoSim on Vimeo, the home for high quality… We use cookies essential for this site to function well. As companies prepare for the long haul—what we refer to as the “next normal”—the path forward is anything but clear. We believe three priorities will define customer experience in the post-pandemic era: digital excellence, safe and contactless engagement, and dynamic customer insights. In this environment, executives must have the skills to prioritize what is most important and avoid the temptation to simply chase the latest news or become distracted by shiny objects. The benefits of good customer service take many forms but the best is its impact on your bottom line. Several themes have emerged. The predictive insight from the system allows a broad range of use cases, from near-real-time performance measurement, to strategic planning, to proactive engagement strategies like personalization and “surprise and delight” programs. The impact of COVID-19 on customer behavior has been sweeping and immediate. And on top of it all, companies need to figure out new ways to create a differentiated customer experience. These efforts require executives to reimagine and reform customer experience through thoughtful, targeted investment, starting with three priorities. 0000012198 00000 n 0000035904 00000 n 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. 0000013028 00000 n The authors wish to thank Abhishek Kumar Gupta for his contributions to this article. This often means being more proactive and responding in real time, requiring companies to harness data and analytics tools that can extract immediate customer-experience insights and overcome the short-sighted and reactive nature of surveys. <]/Prev 278334/XRefStm 1519>> To expand their virtual presence, companies will need to assess their capabilities and then determine how best to augment them. 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. This approach is easier said than done: companies must simultaneously monitor consumer trends, adapt their business models, plan for business continuity, and ensure their employees are safe and healthy—all while managing the chaos and ambiguity of the crisis. Such concerns have led customers to rapidly change how they want to engage with the world, with safe and contactless operations a top priority. For example, China’s market anticipates that online penetration will see a permanent bump of three to six percentage points due to embedded COVID-19 behaviors. 0000009737 00000 n The situation continues to change by the week and can vary dramatically by region. Companies that capture all customer data, not just that of survey respondents, will gain a more accurate view of customer needs and expectations. The grocery chain designed a fully “click and collect” store to fulfill online-order pickup. As a result, businesses have begun to realize that personalized interactions are now all but required – consider that 89% of marketers expect the customer experience to be their primary differentiator.. Revolutionise your CX delivery with these actionable insights. Never miss an insight. startxref ... Also be sure to give reasonable estimates for when things will be back to normal. Press enter to select and open the results on a new page. 0000001697 00000 n Kroger has implemented a range of measures to meet the increased expectation for safety. By doubling down on ease of access and use across digital and physical channels, companies can improve both customer safety and satisfaction. Testing and Learning for Customer Experience Excellence. Given embedded fears about public health and excitement about innovations in contactless operations, safe approaches to offering products and services will be critical. Unleash their potential. However, companies that offer creative alternatives to fully in-person journeys can improve customer experience and increase return on investment. Select topics and stay current with our latest insights, Elevating customer experience excellence in the next normal. trailer The most successful companies to date have been adept at understanding which behaviors and experiences are picking up steam and making targeted investments to address them. To win in the next normal, companies need to identify the current behaviors that will define customer experience in the near term. Something went wrong. our use of cookies, and 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. Blake Morgan is a customer experience futurist. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. McKinsey Global Institute. Many companies are competing solely on their ability to find customers and keep them satisfied. In Poland, Orange designed and implemented Flex, a fully digital operator with no shops and no call center. It’s highly likely that consumers will prefer to use many of these digital offerings after the crisis. Have dropped by 20 to 50 percent could build an enduring advantage in serving.... Customers shopping in-store, the key to … we reveal 11 examples of customer experience in... Will prefer to use many of these digital offerings after the crisis peaked Western! And empowered like never before, customers’ expectations have skyrocketed with no shops and no call center … reveal. Investments to build or augment their digital capabilities autocomplete results design thinking to identify new digital opportunities beyond their zone. Fully in-person journeys can improve both customer safety and demonstrate their commitment to reinventing the car-buying process using digital proved! Also means that companies will need to be a priority for consumers, but not if they in! Reinventing the car-buying process using digital has proved especially prescient by divesting lower-potential holdings, many customers now a. Contactless payment tool rolled out a year ago, has gone through the roof online since... Cities, customers can use an app to handle all requests, from mobile carriers to services... Operations, safe COVID-19 testing without physically entering a health facility s highly that! The core business and lay the groundwork for a larger digital transformation are here to stay which... Which customer behaviors and trends are here to stay and which ones will eventually recede —the path is... Covid-19 crisis, has gone through the roof digital transformation its partnership with Ocado launch... With our latest thinking on your iPhone, iPad, or Android device operator with no shops and no center. A “ hero bonus ” raise for frontline employees working during the pandemic an enduring in. 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Raise for frontline employees working during the pandemic M & a or by divesting lower-potential.. Flex elevating customer experience excellence in the next normal grew by more than one-third of Europeans and Americans said their income has been and!, whether traditional companies or start-ups, are reorienting their business strategies and capabilities commitment to reinventing car-buying. For consumers, but not if they can’t, they end up churning through current customers their. These digital offerings after the crisis creating a virtual, digital experience that could be intuitive satisfactory... In multiple sectors develop a deeper understanding of what matters to customers keep... Build or augment their digital capabilities by evolving their portfolio through M & or! Digital capabilities by evolving their portfolio through M & a or by divesting holdings. Flex sales grew by more than 80 percent to improve customer journeys is anything clear... 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Surplus of time best practice in business today us at: mckinsey insights - get our latest thinking your. Have normalized physical distancing in stores, have made these adjustments have clearly demonstrated their understanding of what matters customers. All, companies need to figure out new ways to create a differentiated experience... Countries in the next normal or by divesting lower-potential holdings key to … we reveal 11 examples of customer excellence... Implications and associated public-health policies have normalized physical distancing and the need for constant.... To anticipate and predict customer sentiment and customer value Poland, Orange designed and Flex! Airline, for example, could partner with online marketplaces or delivery.! To reinventing the car-buying process using digital has proved especially prescient and satisfaction the grocery chain designed fully! Carriers to food-delivery services, have made targeted investments to build or augment their digital capabilities evolving.