Customer Satisfaction

Showing 1-20 of 52

Digital Transformation Should Start With Customers

  • Read Time: 6 min 

Few organizations have the resources necessary to transform operations, business models, and customer experience all at the same time. They need to prioritize. Focusing on the transformation of the customer experience should be first. This is not because it’s necessarily the easiest, but because doing so is far more likely to keep a company viable than changing other aspects of business.

You Can’t Afford to Please Everyone

While giving customers what they want — and as rapidly as possible — may be a worthy goal for service organizations, Amy R. Ward at the University of Chicago’s Booth School of Business notes that businesses can’t always afford to do this. Her research uses probability to understand how best to align resources with customer demand and improve operational efficiency on a day-to-day basis.

Avoiding the Pitfalls of Customer Participation

Even though frontline employees are committed to advancing the objectives of the business, they sometimes see themselves as caught between representing the views of customers and what they think is reasonable. To preserve morale, businesses must keep employees engaged and confident that management has their backs.

Architect Your Company for Agility

  • Read Time: 6 min 

In the digital economy, speed matters. To keep pace with customer demands and competitor moves, companies must be able to quickly experiment with a potential offering and, depending on customer response, continuously enrich and scale that offering, or discard it and move on to the next experiment. Innovating at speed means utilizing empowered teams that are aligned to achieve company-wide objectives.

advertisement

Digital Innovation Lights the Fuse for Better Health Care Outcomes

In an interview with MIT SMR, Cardinal Health’s Brent Stutz describes how the company’s three-year-old innovation center, Fuse, uses a “fail fast and often” mindset toward innovation. “Our innovation process has three phases: explore, experiment, and then pilot. We have an opportunity to pull the plug at any time… I’m not afraid to try 42 things and only have six make it out the other end,” Stutz says.

Which Features Increase Customer Retention?

Companies have an incentive to design goods and services with customer retention in mind. Unfortunately, they often add expensive features to their offerings without knowing whether or how much they will increase retention — and adding too many features can actually decrease customer satisfaction with products after customers have used them.

IoT Can Drive Big Savings in the Post-Sales Supply Chain

Product monitoring enabled by the internet of things can unleash cost savings, service improvements, and better customer experiences. But before this revolution can move forward, both the quality and collection of performance data need to be greatly improved. A research project at the MIT Center for Transportation & Logistics carried out in collaboration with OnProcess Technology underlines the potential for fresh approaches.

General Motors Relies on IoT to Anticipate Customers’ Needs

Steve Schwinke, a member of the original design team for General Motors’ OnStar service and director of its Global Connected Customer Experience unit, says that GM is leveraging the Internet of Things to deliver products and services that consistently ensure the safety of its customers. “I always talk to my team about the Wayne Gretzky quote — skate to where the puck is going,” he says. “How good are we at really anticipating? What are the things that our customers need but don’t know they need?”

Now That Your Products Can Talk, What Will They Tell You?

Products connected to the Internet of Things are providing unprecedented levels of information that can be used to improve both products and customer experience. For instance, a company does not have to wait until a customer calls with a complaint to know that a product connected to the Internet of Things is not working correctly. Instead, the product could already communicate the information, giving the company the ability to provide proactive service. Result: more loyal customers.

advertisement

How Well Does Your Company Integrate Demand and Supply?

  • Read Time: 1 min 

An online questionnaire by the authors of the MIT Sloan Management Review article “Integrating Supply and Demand” helps users assess how well their company’s supply chains are helping meet product demand — and serve key customers. The self-assessment lets users rate their companies in five areas in the demand and supply integration spectrum: relevant value focus, integrated knowledge sharing, strategic resource allocation, integrated behavior, and capacity and demand balance.

How Customers View Self-Service Technologies

Consumers are not running away from self-service options — just poorly implemented ones. Managers often underestimate customer’s need for employee interaction during a self-service experience, as well as customer desires for convenience and for transaction speed. “These three areas have a tremendous impact on the implementation of a self-service technology,” write the authors, “and might explain why some self-service applications have received a lukewarm reception.”

Is Your Business Ready for a Digital Future?

Successfully incorporating today’s digital technologies requires companies to operate in new ways. However, research by MIT SMR shows that being able to effectively incorporate digital strategy is strongly associated with a company’s overall digital maturity. There’s also an important HR component to digital strategy: Respondents expressed a strong preference for working for a digitally mature company, but many were dissatisfied with how their own companies were reacting to digital trends overall.

Measuring the Benefits of Employee Engagement

It’s well known that employees’ attitudes toward the organization have a significant effect on how they approach their jobs and how they treat customers. But recent research suggests that high levels of employee engagement are also associated with higher rates of profitability growth. While the products and services many companies offer can appear quite similar on the surface, exceptional service can be a competitive advantage. “Although we recognize that the ultimate focus of most organizations is on customers,” write the authors, “companies can benefit from adding employee engagement to their list of priorities.”

Integrating Supply and Demand

To compete in different strategic segments at the same time, companies need close coordination between the sales side of the company and supply chain operations. Just as importantly, joining the supply and demand sides of an enterprise presents an opportunity for efficiency and value creation. “A company may have an excellent sales and marketing team and a top-flight operations team and still deliver the wrong benefits to a customer,” the authors note. This article includes an online questionnaire for assessing the current stage of your company’s demand and supply integration, with suggestions for how to improve.

advertisement

Revamping Your Business Through Digital Transformation

Large companies in traditional industries might think that digital transformation can wait — that a follower strategy is a safer route than trying to be a pioneer. “That kind of thinking, while tempting, is wrong,” write George Westerman and Didier Bonnet. “In every industry we studied, companies are doing exciting things with digital technology and getting impressive business benefits.”

Image courtesey of Quicken Loans Inc.

Embrace Your Ignorance

The overconfidence of presumed expertise is counterproductive. Instead, data trumps intuition. Serious innovators take data seriously, argues Michael Schrage: “Organizations may be confident they know their customers, but they’re very likely to be overconfident. Most executives aren’t nearly as smart, perceptive or customer-centric as they believe.” Successful innovators, he writes, “have the courage of their curiosity” and run experiments that challenge their assumptions.

How to Win in an Omnichannel World

Retail customers now readily use both online and offline retail channels. To thrive in this new environment, retailers need to reexamine their strategies for delivering information and products. Companies that are successful at navigating the omnichannel environment take a customer perspective and view the activities of the company through two core functions: information and fulfillment. They also consider hybrid online-offline approaches, including inventory-only showrooms and “buy online, pick up in store” options.

Image courtesy of Flickr user mike fabio.

The High Price of Customer Satisfaction

No company can last for long without satisfied customers. But misguided attempts to improve satisfaction can damage a company’s financial health. Research finds that the relationship between customer satisfaction and customer spending behavior is very weak, and that the return on investments in increasing customer satisfaction is often trivial or even negative. What matters is how customers rank your brand in satisfaction relative to your competitors.

From the Editor: How Important Is the Customer’s Voice?

It’s easy to say customer satisfaction is very important – but harder to put that into practice. The Spring 2014 issue of MIT Sloan Management Review features a special report on understanding your customers, from gauging global clients’ satisfaction through the use of big data to figuring out better strategies for improving customer complaint resolution.

Showing 1-20 of 52