The Impact of Friction in the Customer Experience: Addressing Key Areas for Better Business Outcomes

In last month’s blog post, The Verde Group outlined the findings from 15 years of data which suggests that the amount of friction in the customer experience has largely remained the same despite significant investments in people, process changes and technology. Companies strive to create a frictionless customer experience but in all honesty, friction is inevitable given the complexity of the customer journey.

Friction points, or obstacles that slow down or hinder the customer journey, negatively impact customer loyalty and put a business’s Revenue@Risk®.  The Verde Group has proven this fact across multiple industries, with both business and consumer customers. So, we dug deeper, examining the common themes impacting both B2B and B2C brands. Among the most common areas where friction occurs are the speed of service recovery, the value a customer received for the money spent, and the overall quality of service a customer experiences. In this blog, we explore each of these challenges in detail and provide actionable recommendations for businesses to overcome them.

Speed of Service Recovery

When something goes wrong, the speed with which a business responds and resolves the issue is critical. The Verde Group has conducted hundreds of studies where we measure the impact of resolving a customer’s issue to their complete satisfaction. When this occurs, loyalty and the commercial relationship is fully restored, sometimes even more so than a frictionless experience. Customers, when and if they contact a brand, expect quick, efficient resolutions, and any delay can significantly damage their perception of the brand. A slow service recovery process or one that does not meet expectations, can turn minor issues into major frustrations, leading to lost customers and negative word-of-mouth.

Recommendations:

  1. Empower Employees with Authority and Resources: Equip frontline employees with the tools and authority to promptly resolve issues. This reduces the need to escalate problems to management, shortening resolution time.
  2. Invest in Real-Time Technology Solutions: Architect and apply relationship management systems and AI-driven chatbots to instantly identify and address issues. These systems can prioritize customer inquiries and offer quick solutions to common problems.
  3. Implement Proactive Problem-Solving: Proactively engage with customers who may potentially encounter an issue before they have the opportunity to report it. For instance, if a product delivery is delayed, inform the customer right away and offer alternatives or compensations.

Value for Money

While “value” can be expressed in a number of ways, customers seek good value for their money, and perceived value can influence their overall experience and loyalty. From proactive and personalized communications to product performance, when customers feel that what they’re getting doesn’t justify the price they have paid, they are likely to experience friction in their relationship with the brand.

Recommendations:

  1. Provide Clear, Transparent Pricing and Benefits: Ensure that customers understand what they are paying for. Clearly communicate the benefits and advantages of the product or service to reinforce its value.
  2. Offer Personalized Deals and Loyalty Programs: Personalized discounts, reward points, and loyalty programs can help customers feel they’re getting more value for their money. Tailor promotions based on customers’ previous purchases or preferences to create a sense of exclusivity and enhance perceived value.
  3. Encourage Customer Feedback and Continuously Improve Offerings: Gather insights on customer expectations and adjust your offerings accordingly. Show customers that you’re listening by implementing changes based on their feedback, demonstrating that you care about their experience and value their input.

Quality of Service Provided

The quality of service is often the defining factor of a customer’s experience. Poor-quality service can lead to customer churn, while high-quality service promotes loyalty and positive brand perception. Quality encompasses everything from the interaction customers have with your staff to the reliability of the product or service itself.

Recommendations:

  1. Invest in Employee Training and Development: Empower your team with the skills they need to deliver excellent service. Training should focus on product knowledge, communication skills, and customer empathy, helping employees provide a high level of service consistently.
  2. Standardize Quality Control Measures: Implement quality control standards that ensure every interaction meets a certain level of service quality. Use customer feedback and metrics to continuously monitor performance and make necessary adjustments.
  3. Prioritize Customer-Centric Culture: Encourage a culture that values customer satisfaction at every level of the organization. Employees who understand the importance of quality service are more likely to go above and beyond to meet customer expectations.

Bringing It All Together

A frictionless experience should be the goal for all businesses, and while lofty and likely unattainable, one worthy of pursuit as reducing CX friction results in increased customer loyalty and financial performance. And while enhancing the speed of service recovery, ensuring value for money, and consistently providing high-quality service can act as guideposts, companies should invest in understanding their unique opportunities and what solutions can be deployed to drive business results.

 

Acco

Executive Vice President of The Verde Group
Dennis Armbruster