What is wrong with traditional customer-driven thinking and methods

Customer Journey Mapping

Traditional techniques focus on understanding touch points and the experiences and emotions felt at each touchpoint. Best practice focusses on making these experiences and emotions and making them better.

Advanced approaches are more concerned with aligning to the outcomes that are most important to the customer that differentiate the company from their competition.

Many of the touchpoints even those that create good experiences and emotions therefore become redundant. The reason why that is the right thing to do is the cost associated with a touch point that is no longer necessary.

Ultimately this reflects on the cost of proposition.

Traditional journey mapping
Soon_obsolete_metal_sign

Voice of Customer as Focus for Insight

Voice of Customer techniques designed to uncover wants and needs are typically only 40% effective.

Technology driven approaches focus on encouraging customers to answer surveys and provide insight. Survey based techniques tend to ask only 5 - 7 questions and they are typically relatively simple and closed. This restricts the level of insight that can be gained.

Focus groups work better as greater insight can be gained but they are considerably more expensive and the number of responses are smaller.

In addition, people when asked to explain their wants and needs will typically extrapolate with a "cheaper, better, faster" version of where they are. This does not allow the opportunity for customer innovation - so new techniques are required to gain that insight.

Re-defining Business Strategy in context of Customer

Look at the traditional definition in the image on the right. This is still taught as best practice in companies and business schools.

Look at the revised definition below.

"Business strategy is an agile, flexible and understandable framework which focuses on producing consistently superior outcomes and associated experience for its chosen customers in a way that harmonises it with the desired outcomes for the company, employee, stakeholder and its social agenda".

You can see the immediate change in focus this creates immediately. The focus of the organisation changes immediately and from a relatively simple start point.

Bad definition of strategy