Customer Experience Management: the Value of “Moments of Truth”

Topics: Customer relationship management, Customer service, Marketing Pages: 27 (7910 words) Published: September 3, 2013
Customer Experience Management: The Value of “Moments of Truth” Part 1 of 2

By Bob Thompson CEO, CustomerThink Corporation Founder,

May 2006

Compliments of

Copyright © 2006 CustomerThink Corp. All Rights Reserved. Licensed to RightNow Technologies for Distribution

Customer Experience Management: The Value of “Moments of Truth”

Table of Contents
Executive Summary ..................................................... 1 What Is Customer Experience Management? ............. 2 How Important Are Experiences to Your Customer? ... 6 Emotions Make Experiences Memorable .................. 10 Getting It Right at “Moments of Truth” ....................... 13 Living Your Brand ...................................................... 15 About the Research and Author................................. 16

About the Sponsor
RightNow (RNOW) is leading the industry beyond CRM to high-impact Customer Experience Management solutions. More than 1,500 companies around the world turn to RightNow to drive a superior customer experience across the frontlines of their business. As a win-on-service strategy becomes a business imperative, Customer Experience Management solutions have become essential for business success. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For more information, visit

Copyright © 2006 CustomerThink Corporation Licensed to RightNow Technologies for Distribution


Customer Experience Management: The Value of “Moments of Truth”

Executive Summary
Nearly 25 years ago, Jan Carlzon engineered a turnaround at Scandinavian Airlines by improving “moments of truth” in passenger interactions with the airline. Since then, relationship marketing and Customer Relationship Management (CRM) have been mostly concerned with how to market to customers and get value from them, often with IT-based strategies. But largely forgotten was the insight that Carlzon understood intuitively: Customers perceive value based on the experiences they receive. These days, it seems the phrase “customer experience” is on the lips of every marketer and business consultant. And really, it’s not a moment too soon. All too often, we’ve seen executives pay lip service to the customer while gearing their business to short-term payoffs. But in this age of customers empowered with global shopping carts, that won’t cut it. Colin Shaw, founding partner of Beyond Philosophy, and John Ivens argue that customer experiences are critically important. “We are witnessing the first ripples of a fast approaching new wave of change, breaking upon the shore of a new business differentiator,” they write in their 2002 book Building Great Customer Experiences (Palgrave MacMillan). Think about your own behavior. While using Starbucks as your remote office, you sip on a tall latte and catch up on email. When you travel, you rent your car from Enterprise Rent-A-Car and stay at Marriott hotels—brands that fulfill their promise to you. When you get a free weekend, you head for the open road on your Harley. You listen to music on your iPod. You buy DVDs, kids’ toys, clothes, electronics and, oh yes, books at These firms know the secret to building loyalty and growing your business. Why? Because they make a connection with customers that transcends the basic functional value they offer. Unfortunately, such stellar experiences are not the norm. In CRMGuru’s survey, only 22 percent of customers agreed that companies “currently provide an excellent customer experience” in major industries like banking, air travel and electronics. The silver lining, though, is that companies that excel can build a more sustainable competitive edge based on an emotional bond. But what is the “customer experience” and how can you tap into it? What is Customer Experience Management and how does it relate to Customer Relationship Management? And why are so few...
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