Customer experience can not be successfully achieved through operational efficiency – this is a misconception. Perhaps because, when improving operational efficiency, the output to input ratio improves – and many of the output measures (most notably revenue and customer growth) are also indicators of good customer experience.
So, while operational efficiency may be a result of customer experience enhancements, taking a customer experience-led approach can reap substantially more benefits.
What do your customers want?
Organisations that lead with operational efficiency tend to take an inside-out approach. This means they review technology and customer engagement channels and find opportunities to replace analogue with digital, manual processes with automation and humans with artificial intelligence.
But, they can’t expect to achieve their customer experience goals without having gone through the process of understanding whether these changes align with what the customer needs or wants, or that it provides a better customer experience than before – this can’t be assumed.
The same goes for any other initiative that is typically tied to digital transformation efforts like driving customers to apps (or in-app functionality), automating customer processes (RPA) etc. If the process does not start with the customer experience in mind and work backwards, there’s a high risk the experience will be negatively affected.
And even if the operational changes an organisation makes do end up benefiting customers, taking an approach that centres on operational efficiency is limiting. That’s because the ultimate goal of operational efficiency is to save money and there’s only so much money an organisation can save before cost reduction becomes harmful to customer experience.
The limitless rewards of a customer experience-led approach
Contrastingly, there’s no upper limit to potential rewards that come from an outside-in approach that centres on customer experience.