February 2004, V. 6, No. 1

"Building Customer Loyalty and Retention Through Customer Experience Management"

New Clients & Projects

Senior Management Addition

About LRA Worldwide

LRA Office
Locations

It's All About the Experience:
Building Customer Loyalty and Retention Through Customer Experience Management

By Debra Andrews

Try to think of a truly exceptional customer experience that you have had in the last year. If you are like most consumers, you might have some trouble even coming up with a handful of memorable moments. The fact is there are not many great customer experiences because they are very difficult to achieve.

Vice President of Customer Service	Vice President of Customer Experience	Vice President, Customer Experience
	What do these companies have in common?
Managing Director, Customer Experience		Director of Customer Experience
Vice President, Customer Experience	Chief Customer Officer	Chief Customer Officer

In any customer experience, there is a need to be fulfilled, whether it is a product or a service. This is the “What”, or physical element of the experience that companies tend to primarily focus on. Exceptional customer experiences are not, however, all about the “What”, but more about how you were dealt with and how the interaction made you feel. This emotional part of the experience is too often ignored, resulting in forgettable interactions and fickle customers.

So how important is creating exceptional customer experiences? According to Harvard Business Review, cutting customer defections by just five percent has the effect of boosting profits between 25% and 95%. In the book Great Customer Experiences, Ian McAllister, former Chairman & Managing Director of Ford Motor Company, said, “In the eighties, ‘Quality’ was the differentiator. In the nineties, ‘Brand’ was the differentiator. My own view is that for the 2000s, the ‘Customer Experience’ will be the differentiator.”

Because exceptional customer experiences are critical to the growth and success of companies, many firms across all industries are turning to Customer Experience Management (“CEM”) to help assess, improve and manage their customer interactions at every touchpoint. Whereas CRM programs push information out to the customer, CEM programs pull information about the customer into the organization. The degree to which CEM allows a company to see an interaction from the customers’ perspective, and to collect, analyze, and advocate factors customers say are important – regardless of the company’s beliefs – the more likely the ideal will be achieved.

There are some outstanding brands, such as Dell, Amazon.com and Virgin Atlantic, which are leading the way in CEM. They have redefined their business categories and achieved very favorable business results by using the customer experience as a method for differentiating their brands in very competitive marketplaces. As a part of their CEM program, each of these companies emphasize the following:

• Establishing a connection between brand values and customer experience;
• Communicating messages that are in “one voice”;
• Effectively encouraging customer feedback by undertaking regular research into customer requirements and expectations;
• Coordinating processes across lines of business and channels from the customer viewpoint; and
• Establishing reward systems that are aligned with the customer experience

LRA News:
New Clients & Projects

LRA is pleased to announce the following additions to its growing portfolio of clients and projects:


Canyon Ranch

Canyon Ranch Health Resorts, a preeminent operator of high-end health spas, has retained LRA to provide specialized market research services. Canyon Ranch operates health resorts in Tucson and in the Berkshires of Massachusetts, as well as Canyon Spa Clubs at the Venetian Resort in Las Vegas, Gaylord Palms Resort in Kissimmee and on the Queen Mary 2.

For more information on Canyon Ranch Health Resorts, Click Here.

Pestana Hotels & Resorts

Pestana Hotels & Resorts, a leading international leisure and travel company, has selected LRA to design and implement a guest satisfaction survey program for their 32 hotels and resorts around the world. As Pestana's strategic consulting and research partner, LRA will be measuring guest satisfaction and loyalty using an innovative Internet-based eSurvey technology.

For more information on Pestana Hotels & Resorts, Click Here.

PGA TOUR Golf Course Properties, Inc./
Tournament Players Club

LRA continues to expand its partnership with the PGA TOUR and the Tournament Players Club ("TPC"). During the past 3 years, LRA has designed and implemented rigorous performance measurement processes to continually measure performance and identify any gaps between desired and actual outcomes at the club level. To enhance the existing programs, LRA is creating TPC University, with the goal to develop a "Culture of Service Excellence." Through its work with LRA, the TPC has continued to elevate its customer service mission. Both parties now feel the timing is right to introduce an enhanced learning and training platform.

For more information on PGA TOUR Golf Course Properties, Click Here.

Senior Management Addition

LRA Worldwide is pleased to announce Steve Sadowski has joined the company as Director of Business Development. LRA is currently in an exciting phase of repositioning and aggressive growth. Steve will spearhead diversification into new industries and sectors.

For more information on Steve Sadowski, Click Here.

About LRA Worldwide

LRA Worldwide is a leading consulting and research company specializing in Customer Experience Management. LRA helps organizations design and deliver exceptional customer experiences through a continuous cycle of assessing, improving and managing the experience across all customer touch points. The company conducts customer and employee satisfaction research, creates knowledge bases of customer service and operating standards, designs high-level customer service and leadership training programs, and employs rigorous performance measurement systems, including mystery shopping and quality assurance programs. LRA aligns the client organization and its people in a process that continually monitors and maintains the customer experience. LRA focuses on the food service and facilities management, gaming, hospitality and leisure, sports and entertainment, and travel and transportation industries. For more information, please visit the company’s Web site at www.lraworldwide.com or contact:

Contact: Ms. Debra Andrews
Tel: +1.215.957.1999, ext. 26
Fax: +1.215.957.6570
E-mail: dandrews@lraworldwide.com

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