Hello, dear readers! I hope April has treated you well so far. As we continue our focus this month on customer experience, I want to discuss a crucial business strategy that distinguishes sustainable growth from short-lived success.
The Pitfalls of Competing on Price Alone
In the current volatile market, competing solely on price can lead you down a precarious path. It often leads businesses to overlook other critical areas such as service quality and customer satisfaction. Consider a popular hypermarket that focused on maintaining variety and affordability but neglected customer service. When unforeseen circumstances like a major construction blocked convenient access to their location, customer footfall drastically reduced. People were unwilling to navigate a more challenging route to a store known for poor service, despite its proximity and low prices. This situation highlights the dangers of relying solely on being the cheapest option in the market.
Why Customer Experience Is the Sustainable Alternative
Customer experience encompasses everything from recognizing and addressing pain points such as wait times and stock levels, to enhancing the overall service speed and efficiency. It is a comprehensive approach that considers the entire customer journey. When you focus on customer experience, you are investing in a competitive edge that is hard to replicate because it is driven by genuine effort and deliberate strategy.
Leveraging the Three Dimensions of Your Brand
Every brand operates along three dimensions. And they include:
Utility: What is the primary function or purpose of your product or service? For instance, a toothpaste brand may focus on whitening teeth and fresh breath.
Emotional: How does your brand/product/service make customers feel personally? An executive might feel a sense of accomplishment from acquiring a luxury item like a Rolex watch.
Societal: How does the brand impact the customer’s social standing? The same Rolex watch might enhance how others perceive the executive at social events.
Identifying which of these dimensions your product or service excels in can guide you to redefine your competitive strategy based on customer experience rather than price.
Air Peace: A Case Study in Potential Customer Experience Focus
Recently, the CEO of Nigerian Airline Air Peace Allen Onyema expressed concerns over international competitors lowering their prices to frustrate them out of business. This scenario prompts the question: Is price the only way to compete? It is a precarious situation to be in. Instead, focusing on what customers truly value—be it more generous luggage allowances, empathetic customer service, local delicacies, or unique concierge services—can differentiate an airline in a crowded market.
Creating a Culture of Customer-Centricity
Making customer experience a cornerstone of corporate culture is crucial. You cannot improve what you do not measure. Whether it is through managing, meeting, or exceeding expectations, every interaction should contribute positively to the customer’s perception of a brand.
Moving Forward
As we gear up for the challenges and opportunities that lie ahead, I encourage you to think beyond price wars. Focus on enriching the customer experience, identifying key areas where your brand can truly shine, and continuously gathering insights to know your customers better than your competitors do.
If you are looking for strategies to elevate your customer experience or to redefine your competitive edge, our consulting team is here to assist. Reach out to us, and let us ensure your business not only survives but thrives by making meaningful connections with your customers.
Next week, we will take a deeper dive into customer experience. Stay tuned as next month we will dive deeper into the nuances of customer experience. Make sure to subscribe to our newsletter. Stay updated with the latest insights and strategies that can transform how you engage with your customers.
Here is to creating exceptional experiences that lead to lasting success!
