Monthly Spotlight

Tales of Modern Retail 1: Understanding Customer Experience (CX)

Once upon a time, marketing and sales folks could not get enough of customer satisfaction, net promoter scores, loyalty pyramids and dozens of other ways of trying to discern if people would come back tomorrow. But all of that has given way to Customer Experience (CX). No longer is it sufficient to measure service levels alone. Today, it is all about the experience.

CX has become important for several reasons. Firstly, it is an amalgam of all the experiences and encounters someone has with your product or service; it better reflects a customer’s emotional state of mind and it factors in the intangibles typically provided by the very best brands. Crucially, CX also allows for a more level playing field when trying to compare the performance and fulfillment provided by digital platforms and offerings versus traditional service environments.

For Singaporeans, hotels are seen as the pinnacle of CX. But interestingly, things start to diverge when you look at those aged under 25 who have come of age in the digital era. Whereas those over 25 rate online shopping and service delivery on par with Department stores, those aged under 25 rate both online shopping and service platform experience over 10 points higher than Department stores. This highlights both changing generational expectations and why CX has become such a crucial measurement in today’s economy. 

 

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