From touchpoints to journeys

To maximize customer satisfaction, companies have long emphasized touchpoints. But doing so can divert attention from the more important issue: the customer’s end-to-end journey.

When most companies focus on customer experience they think about touchpoints—the individual transactions through which customers interact with parts of the business and its offerings. This is logical. It reflects organization and accountability, and is relatively easy to build into operations. Companies try to ensure that customers will be happy with the interaction when they connect with their product, customer service, sales staff, or marketing materials. But this siloed focus on individual touchpoints misses the bigger—and more important—picture: the customer’s end-to-end experience. Only by looking at the customer’s experience through his or her own eyes—along the entire journey taken—can you really begin to understand how to meaningfully improve performance.

What is a customer journey?
McKinsey director Alex Singla illustrates how a simple insurance claim provides multiple chances to build customer satisfaction.

Customer journeys include many things that happen before, during, and after the experience of a product or service. Journeys can be long, stretching across multiple channels and touchpoints, and often lasting days or weeks. Bringing a new customer on board is a classic example. Another is resolving a technical issue, upgrading a product, or helping a customer to move a service to a new home. In our research, we’ve discovered that organizations that fail to appreciate the context of these situations and manage the cross-functional, end-to-end experiences that shape the customer’s view of the business can prompt a downpour of negative consequences, from customer defection and dramatically higher call volumes to lost sales and lower employee morale. In contrast, those that provide the customer with the best experience from start to finish along the journey can expect to enhance customer satisfaction, improve sales and retention, reduce end-to-end service cost, and strengthen employee satisfaction.

This is especially true in today’s multitouchpoint, multichannel, always-on, hypercompetitive consumer markets. The explosion of potential customer interaction points—across new channels, devices, applications, and more—makes consistency of service and experience across channels nigh impossible—unless you are managing the journey, and not simply individual touchpoints. Indeed, research we conducted in 2015 involving seven EU telecom markets found that when consumers embarked on journeys that involved multiple channels their experience was materially worse than during single-channel experiences, whether those experiences were digital or not.

The trouble with touchpoints

Consider the dilemma that executives faced at one media company. Customers were leaving at an alarming rate, few new ones were available for acquiring in its market, and even the company’s best customers were getting more expensive to retain. In economic terms, a retained customer delivered significantly greater profitability than a newly acquired customer over two years. Churn, due to pricing, technology, and programming options, was an increasingly familiar problem in this hypercompetitive market. So was retention. The common methods for keeping customers were also well known but expensive—tactics like upgrade offers and discounted rate plans, or “save desks” to intercept defectors.

So the executives looked to another lever—customer experience—to see if improvements there could halt the exodus. What they found surprised them. While the company’s overall customer-satisfaction metrics were strong, focus groups revealed that a large number of customers left because of poor service and shoddy treatment over time. “How can this be?” one executive wondered. “We’ve measured customer satisfaction for years, and our call centers, field services, and website experience each score consistently over 90 percent. Our service is great!”

As company leaders probed further, however, they discovered a more complex problem. Most customers weren’t fed up with any one phone call, field visit, or other individual service interaction—in fact, most customers didn’t much care about those singular touchpoint events. What was driving them out the door was something the company wasn’t examining or managing—the customers’ cumulative experience across multiple touchpoints, multiple channels, and over time.

Take new-customer onboarding, for example, a journey that spanned about three months and involved an average of nine phone calls, a home visit from a technician, and numerous web and mail interactions. At each touchpoint, the interaction had at least a 90 percent chance of going well. But average customer satisfaction fell almost 40 percent over the course of the entire journey. The touchpoints weren’t broken—but the onboarding process as a whole was.

Many of customers’ numerous calls during the process represented attempts to clarify product information, fix problems with an order, or understand a confusing bill. Most of these service encounters were positive in a narrow sense—employees answered the questions or solved the issues as they arose—but the underlying problems were avoidable, the root causes left unaddressed, and the cumulative effect on customer experience was decidedly negative. The company’s touchpoint-oriented, metric-driven way of thinking about customer experience had a large blind spot.

Solving the problem would be worth hundreds of millions of dollars, but the company needed a whole new way of thinking about and managing its service operations to identify and reimagine the customer-experience journeys that mattered most.

More touchpoints, more complexity

The problem encountered by the media company is far more common than most organizations care to admit and is often difficult to spot. At the heart of the challenge is the siloed nature of service delivery and the insular cultures, behaviors, processes, and policies that flourish inside the functional groups that companies rely on to design and deliver their services. In many cases, these groups are also the keepers of the touchpoints that shape and measure how the company’s activities meet the customer’s—say, an in-store conversation with a sales rep, a visit to the company’s website, or a query to the company’s call center. Whether because of poorly aligned incentives, management inattention, or simply human nature, the functional groups that manage these touchpoints are constantly at risk of losing sight of what the customer sees (and wants)—even as the groups work hard to optimize their own contributions to the customer experience.

The media company’s sales personnel, for example, were measured and rewarded for closing new sales—not for helping customers navigate a complex menu of technology and programming options to find the lowest-price offer that met their needs. Yet frustration about complex pricing for high-end equipment, confusion about promotions, and surprise over program lineups were all frequent causes of dissatisfaction later in the process, as well as frequent sources of queries to the company’s call centers. Executives knew that each of these discrete items was a challenge—but only when they took a broader end-to-end view did it become apparent that even though each individual link in the service-delivery chain appeared healthy, the cumulative effect was quite the opposite.

The answer isn’t to replace touchpoint management and thinking. Indeed, the expertise, efficiencies, and insights that functional groups bring to bear are important, and touchpoints will continue to represent invaluable sources of insights—particularly in the fast-changing digital arena. Instead, companies need to recognize and address the fact that—at least, in most cases—they are simply not wired to naturally think about the journeys their customers take. They are wired to maximize productivity and scale economies through functional units. They are wired for transactions, not journeys.

So how should companies tackle this issue? In our experience, six actions are critical to managing customer-experience journeys (articles elsewhere in this volume explore several of these topics in depth):

  • Step back and identify the nature of the journeys customers take—from the customer’s point of view.
  • Understand how customers navigate across the touchpoints as they move through the journey.
  • Anticipate the customer’s needs, expectations, and desires during each part of the journey.
  • Build an understanding of what is working and what is not.
  • Set priorities for the most important gaps and opportunities to improve the journey.
  • Come to grips with fixing root-cause issues and redesigning the journeys for a better end-to-end experience.

The amount of time it can take to identify journeys, understand performance, and redesign the experience can vary widely from company to company. For companies seeking only to fix a few glaring problems in specific journeys, top-down problem solving can be enough. But those that want to transform the overall customer experience may need a bottom-up effort to create a detailed road map for each journey, one that describes the process from start to finish and takes into account the business impact of enhancing the journey and sequencing the initiatives to do so. For many companies, combining operational, marketing and customer, and competitive-research data to understand journeys is a first-time undertaking, and it can be a long process—sometimes lasting several months. But the reward is well worth it; creating a fact base allows management to clearly see the customer’s experience and decide which aspects to prioritize.

Journeys explained

To better see how customer journeys work, let’s look at a measurable and routine service event—say, a product query—from the point of view of both the company and the customer. The company may receive millions of phone calls with questions about its product, and it is imperative to handle each of these calls well. But when customers are asked to recall their side of the experience months later, it is highly unlikely that they would describe such calls simply as a “product question.” That’s because the call has a context, and understanding it is the key to understanding customer journeys (Exhibit 1).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s