First, the data…
According to a recent survey, 86% of buyers will pay more for a better Customer Experience, but only 1% of customers feel that their expectations are consistently met by stores and service providers.
And there’s more:
- 82% of customers say the number one factor that leads to a great customer service experience is having their issues resolved quickly.
- 62% of global consumers switched service providers due to poor customer experiences, up 4% from the previous year, as per the Accenture Global Consumer Pulse Survey 2014.
- By reducing customer defection rate by 5% can increase profitability by 25 to 125%. And a 2% increase in customer retention has the same effect as decreasing costs by 10%. (Emmet Murphy and Mark Murphy, ‘Leading on the Edge of Chaos’)
- A customer is 4 times more likely to buy from a competitor if the problem is service related versus price or product related. (Bain & Company)
- And by 2020, Customer Experience will overtake price and product as the key brand differentiator. (Walker ‘Customer 2020’)
This Data leads to one clear Insight: that Customer Experience is becoming the key to business success worldwide. The needle is firmly moving to point to the fact that, as Forbes reports, experience is far more likely to lead to returning customers than price. In this world, only those businesses who can consistently offer greater Customer Experience will survive, and flourish.And we find that the best way to offer that great experience is by applying the ideas of Human Centred Design or User Centred Design.
Which is what Design Thinking does: it focuses on human needs and behaviours and translates observations into insights, and the insights into improved products, services and processes. It is widely applied by companies as diverse as Apple to Uber, SAP to Citrix, Toyota to Pepsi, Samsung to 7Eleven. With the goal to design solutions that improve the user/customer experience. Through rigorous yet engaging steps, through tools that employ primary research to ethnography to model-building, Design Thinkers can come up with solutions that are real, impactful and transformative. Design Thinking describes a repeatable process employing unique and creative techniques which yield guaranteed results — usually results that exceed initial expectations. Extraordinary results that leapfrog the expected.
This is why it is such an attractive, dynamic and important methodology for businesses to embrace today.