The global study, which surveyed 1,700+ executives and 12,000+ consumers, including 250 executives and 2,011 consumers from Australia, found that despite the majority of companies (66%) investing $250,000 each year evaluating the customer experience through Net Promoter Scores, reviews, and customer satisfaction surveys, 82% were unable to recall a single example of a recent frictionless customer experience—showing current customer experience processes do little more than wallpaper over the cracks.
The life cycle of an operation, which encompass processes, technology solutions, and human coordination are more important to business outcomes, yet they are frequently overlooked.
The study suggests that by carefully manoeuvring of these components, companies can deliver a quality moment of service where everything operates smoothly to create a positive result for a customer.
However, while 79% of businesses have invested time and resources in identifying where these inflection points are, when problems are identified, nearly a third of managers (29%) admitted to reporting them but not taking action.
Furthermore, 18% revealed they were too busy to report issues unless urgent, while just 15% said they proactively look to pre-empt problems. This begs the question how companies can expect customer experience and loyalty to improve without taking necessary action, exposing revenue and market share to vulnerabilities.
With 90% of businesses stating they have reengineered or are reengineering their business to ensure customer touchpoints, the study noted it is vital that companies ensure processes are optimised across each of these inflection points to mitigate issues and fuel growth.
For enterprises that fail at the moment of service, there are financial to be considered.
A quarter of consumer respondents stated they would never engage with a brand again after just one bad experience, while over half (52%) would abandon a company after two to three.
IFS also sought to examine the impact of negative experiences on wider brand perception and found that 58% of consumers are very likely or somewhat likely to share their negative perceptions with their network, highlighting how easily a bad interaction can be amplified.
However, it’s not all doom and gloom. Over half (52%) of consumers are inclined to leave a positive review, underscoring just how much can be gained by keeping an open dialogue with customers and focusing on delivering an exceptional brand experience.
“When it comes to delivering a positive customer experience, businesses have a limited opportunity to get it right. And if they neglect a single inflection point, they are gambling with their outcomes, including profits and margins,” IFS chief customer officer Michael Ouissi says.
“There are many points where you can either delight or disappoint a customer across the value chain and consumers are willing to voice their opinions either way. Running the right enterprise software—engineered for the moment of service and capable of orchestrating a multitude of people, assets and customers—will separate the winners from the losers,” Ouissi adds.
“To achieve this, enterprises must rethink how they architect their operations, and become a ‘composable enterprise’ that harnesses a combination of packaged functions and technologies to deliver outcomes and adapts to the pace of business,” ends Ouissi with a suggestion.