The impact of customer experience on businesses has become undeniable. A customer-centric strategy is no longer just an option; it has become an essential differentiator for companies around the world. Those that prioritize understanding and meeting customers' needs, even in difficult economic conditions, reap the benefits. According to a customer experience trends report, 74% of business leaders in Europe reported a positive return on investment after investing in customer experience over the past year.
Understanding horizontal experience
Horizontal experience revolves around customers' perceptions and expectations of a company's service quality and how it compares with other companies in the same sector. When customers have a positive experience with a company, they automatically tend to compare it with other experiences and expect at least the same level of service in every sector and area.
This phenomenon has significant consequences for customer retention and loyalty strategies, as it forces companies to adapt to increasingly high customer demands. Companies that cannot show enough flexibility to meet customers' needs risk losing them to the competition. In fact, 68% of customers who have repeatedly faced poor-quality service are inclined to switch to a competitor.
New expectations in the public sector
The same is true in the public sector, where considerable progress has recently been made in digitizing services.
Today, it is possible to book a medical appointment online in a single click or request a document without waiting for hours. While these advances have improved the quality of life of many citizens, they have also raised expectations of public administrations. People who have experienced the speed and simplicity of digital public services are less inclined to tolerate long queues or endless back-and-forth between different customer service agents.
Moreover, as convenience becomes the norm in the private sector, public sector innovations have also raised the bar for private companies. When customers can enjoy a seamless online experience with a public service, they are very likely to expect the same level of quality from private companies.
Going beyond sector competitiveness
Horizontal experience means that when people compare the positive experiences they have had with different companies, even though those companies operate in different sectors, they generally expect the same level of quality, personalization and satisfaction from the others. This phenomenon is reshaping the way companies operate and compete in the market. Companies can no longer rely solely on their own characteristics or the specific demands of their sector. Instead, they must measure themselves against the best practices of competitors that deliver exceptional customer experiences.
This requires companies to adopt innovative and personalized solutions to improve the customer experience at every step of the journey.
Meeting the challenge and seizing the opportunities
Horizontal experience presents both challenges and opportunities for businesses. On the one hand, it requires constant investment in customer experience to avoid losing ground to competitors or newcomers who rely on their reputation or innovation to attract customers. On the other hand, it offers the opportunity to stand out and build customer loyalty by delivering memorable experiences that exceed expectations.
This becomes even more strategic during an economic crisis, when acquiring new customers is difficult and customer retention becomes essential to ensure a positive return on investment. Satisfied customers are more loyal and more inclined to spread positive word of mouth about your company, contributing to its prosperity, even in times of crisis.
The impact of horizontal experience on complaint management
In complaint management, the principles of horizontal experience become even more significant. Customers whose complaints are resolved smoothly and effectively are more likely to remain loyal to the company. A well-implemented complaint management system, based on a horizontal experience approach, ensures that every customer interaction, whatever the channel or department, is consistently positive and effective.
The benefits of horizontal experience in complaint management include:
1. Improved customer loyalty:
By handling complaints quickly and effectively, companies increase customer satisfaction and show that they value feedback. This fosters a sense of loyalty and encourages customers to maintain their relationship with the company.
2. Reputation management:
In the digital age, information travels fast, and a company's reputation can be strongly affected by the way it handles complaints. Companies that prioritize customer satisfaction through a horizontal experience do not just solve problems; they also build a positive reputation, which is crucial for lasting success.
3. Longer customer lifetime
When customers feel heard and their complaints are handled well, they are more likely to buy again and become long-term customers. This extends the customer lifetime, which directly influences the company's revenue and profitability.
4. Relevant insights for continuous improvement
An effective complaint management system based on horizontal experience provides valuable data on customer pain points, recurring problems and opportunities for improvement. This data can be used to improve products, services and overall customer satisfaction.
Horizontal experience has emerged as a powerful concept that drives customer expectations and demands exceptional service. For companies, adopting this approach is no longer optional but essential to remain competitive and successful. In complaint management, horizontal experience is even more important, as it directly affects customer loyalty, reputation and overall business performance. Companies that prioritize a seamless, integrated customer experience across all touchpoints, even when complaints arise, will undoubtedly benefit from their customers' loyalty and advocacy. Embracing horizontal experience is not just about satisfying customers; it is about exceeding their expectations and building long-term relationships that stand the test of time and market fluctuations.
Abdelilah EL ATTARI
Expert in Digital Transformation and Artificial Intelligence (AI): Procurement Digitalization (S2C, P2P), HRIS, Civic Tech and Participatory Democracy, Marketing and Customer Relations
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