Customer experience – A powerful strategy for commoditized markets

Case organization profile

  • One of the top steel sheets & steel components manufacturers of india
  • 30 years in industry
  • 500 customers, 2000 employees, 5 plant locations
  • Product centric organization – primary focus on product quality and product engineering

 

Scenario

  • Case organization was experiencing a severe commoditization of its offering
  • This was adversely affecting growth, with price & delivery being cited as primary reasons for drop in share of business.

 

Mandate to Terragni – the outside – in perspective

Uncover customer insights to establish

  • Reduction of the effect of price as a sole decision driver
  • Effect of customer experience as a decision driver
  • Drivers of customer experience that determine delivery of competitive customer experience

 

Customer insights – strengths

  • Stable brand
  • “Long-run” player
  • Dependable
  • Powerful referencibility

Above factors provided end-customers a sense of assurance & therefore were strong engagement drivers

 

Customer insights – opportunities

  • Customers see case organisation as “transaction oriented”
  • Customers perceive that the case organization has limited appreciation & understanding of their changing market context & therefore the consequent pressures on quality & delivery
  • Customers do not perceive that the case organization is “all-systems-ready” for the rapidly changing & demanding markets.
  • The above resulted in engagement experience gaps across various touchpoints. These gaps resulted in customers seeking relationship value in the form of lower prices
  • Customers are willing to ascribe value beyond price even in a commoditized market
  • customers ascribe this value in direct proportion to the strength of emotional connect they experience
  • This emotional connect is driven by the specific processes, actions and attitudes exhibited.
  • Customer insight provided a detailed map of the desired processes, actions and attitudes

 

Recommendations

  • Visibility across the entire engagement journey, from pre-purchase right through to order fulfilment & post purchase support
  • Promote a culture of customer centricity within internal business functions
  • Train functional teams to use end-to-end customer information towards resolving conflicting objectives while meeting customer requirements

 

Results

  • “Customer experience management” team with a mandate of overseeing, coordinating & spearheading delivery of relevant &    differentiated customer experience was formed
  • Action teams were formed around each of identified action areas with a time bound execution plan
  • Case organization achieved a 10% increase in new customer acquisition within a span of 6 months as a direct result of customer experience initiatives