NEWS14 October 2020

Customer experience can improve business growth

Innovations News Trends UK

UK – The Institute of Practitioners in Advertising (IPA) has developed a four-step framework for customer experience (CX).

Mobile with stars indicating customer experience rating

In its report Positive brand friction, the IPA said that if managed effectively, CX could boost commercial performance and growth.

The research was based on 26 interviews and online workshops with CX consultancies, marketing, media, advertising and marketing services agencies, and brands.

It identified four challenges in delivering effective CX, one being that CX is designed around the organisation, rather than customers. Different parts of an organisation are responsible for CX, making it difficult to collaborate and make decisions quickly. 

There is also a commercial tension between efficiency through cost reduction and more variable returns through a focus on effectiveness, according to the report.

The report says that ‘positive brand friction’ can help increase growth, defined as “purposefully slowing the experience down in a way that accentuates the brand and positively impacts the experience without making it harder for the customer”.

The IPA also outlined four areas that can help overcome tensions within CX. One of these is experience intelligence and measurement, which could identify areas of opportunity to improve CX, predict benefits and measure outcomes.

A second solution is collaboration, whereby there is a shift from a single department or team being responsible for CX to an organisation-wide approach.

Nick Milne, founder and director of Go Ignite Consulting, and also a co-author of the report, said: “Due to Covid-19, organisations, more than ever, need to be more aligned, more integrated, more agile and really clear around how to best use all growth levers to aid their financial recovery.

“Customer experience is a major lever to that growth. It is complex, but we hope this framework of where organisations should look to unlock its potential and change the culture of their organisations will help to drive their short and long-term success.”