New Delhi: We are living in an era where experience is everything – whether it is experience derived out of consuming or using a physical product ora service. The majority of CEOs believe that customer-centricity is key for driving business growth, in this era of experience. However, there is still a big gap between ambition and reality; while nearly all CEOs in India see the need to become customer-centric, just 37% of consumers believe companies offer truly customer-centric experiences, according to the Kantar CX+ study.
The new CX+ TMT report released by Kantar today evaluates companies in the sector based on a unique combination of their experience scores, on dimensions that are critical to the customer’s journey.
The basic premise of CX+ is that brand and customer experience has become synonymous, in this increasingly connected environment. Thus, the roadmap to delivering a holistic experience is based on 5 key CX success factors:
- Clarity of brand promise
- Empowered employees
- Empowered customers
- Creating lasting memories
- Reinforcement of brand choice
Additionally, the study also identifies each brand’s Experience Gap – which quantifies the difference between the Brand Promise and the actual customer experience delivered.
The CX+ index for each brand is derived based on a combination of the CX Performance and the Experience Gap.
The TMT study covered Telecom Network Providers, Media Streaming Platforms, and Handheld Devices. In this study conducted in early 2020, clear winners emerged in each of the sectors.
Kantar CX+ 2020: Leaders in the TMT sector in India
Commenting on the launch of the CX+ TMT report findings, Sushmita Balasubramaniam, Domain Lead for CX and Commerce – South Asia, Insights Division, Kantar said: “The landscape across the TMT sectors has changed drastically over the last one year. Consumers’ adoption of and dependence on digital, whether for basic everyday living, working, studying or entertainment has presented enormous challenges to companies in these sectors. And, the changes in the usage of products and services will also mean that customer priorities on the kind of experience they are seeking will be different from the pre-COVID era.”
Our CX+ study reveals that for many companies across these sectors, there is a large gap between the brand promise and customer experience. The companies who emerge as leaders are those who have delivered a superior customer experience that is matched with a strong brand promise thus giving them a distinctive ‘Experience Advantage’ over the competition.
In the current scenario, there are some things which, with time may go back to the way they were, but many things will not. It is critical for companies to recognize and understand what customer expectations and priorities are going to be in the coming future. And, brands that will succeed are those who will adapt and innovate to cater to these new emotions and behaviors.
We have evidence that putting customer-centricity at the core can protect brands from major economic disruptions.
This is the most opportune time for companies in the tech sector to review their strategies and take the current challenges head-on. The customer is in a mood to explore and experiment.
Soumya Mohanty, Chief Client Officer, South Asia, Insights Division, Kantar, said “In the current scenario, with tech convergence and emerging global media giants, the world will see vigorous competition in the TMT sector. This is an arena where tech credentials will become increasingly hygiene, CX will be critical. As network services providers, handheld device brands, and streaming media providers, all will leverage customer data to build personalized journeys, CX, and owning the relationship with the end-user will become increasingly important.”
Some key findings that underline the clear benefits of delivering a strong customer experience – in the three TMT sectors:
Telecom/ network providers:
- Brands that lead in the CX+ Index have 1.5xhigher engagement levels than those at the lower end of the index.
- The likelihood of their customers remaining loyal to them increases by 1.5x. While the likelihood of their customers recommending them increases by 1.6x
- Delivering on basics is critical for a telecom provider – price benefits, at the same time delivering on basics of connectivity and customer support.
Media Streaming platforms
- The leader brand is seen as being 1.6x times more customer-centric than those at the lower end of the index.
- The leaderhas1.8xhigher engagement levels
- Retailers that lead in the CX+ Index are 1.7x more likely to be recommended than those at the lower end of the index.
- The likelihood of their customers remaining loyal to them increases by 1.8x
- Even for a newer category like streaming platforms, basic CX attributes emerge as top drivers of CX – ease of getting in touch, value for money, customer-centricity, and download/buffering speed
- The leader has 1.8xhigher engagement levels than those at the lower end of the index.
- Retailers that lead in the CX+ Index are 1.9x more likely to be recommended
- The likelihood of their customers remaining loyal to them increases by 1.7x
- Interestingly, experience in branded stores at the time of purchase, delivery of brand promise, and being customer-centric are more important drivers of CX than functional aspects relating to the product themselves.
The Kantar CX+ TMT 2020 study analyzed 6,000+ customers drawn from users across the sectors in India and was conducted in early 2020.