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Why do all companies need an experience-based growth strategy?
As we discussed in the previous post companies have a thorny problem in common; they struggle to achieve sustainable, profitable growth in a world where their offerings are increasingly commoditized.
In addition to increasing competition from their traditional competitors, they face disruption from agile digital companies, typically startups, that target their customers with innovative, convenient and often personalized offerings.
Therefore, they must devise new approaches to growth strategy, based on new pillars; highlighting in recent times as a main pillar the experience.
The basic pillars of any growth strategy based on experience.
According to the consulting firm McKinsey, experience-based growth strategies are based on three pillars:
- Establish a clear growth aspiration and target, as well as a roadmap that links customer experience to value.
- Commit to transforming the business through decisive action by redesigning the customer experience, products, services and business models.
- Enable transformation through a new company culture, capabilities, technologies, governance and effective customer experience measurement.
Strategy starting point.
Leaders of companies executing experience-driven growth strategies start by recreating a long-term vision for the company-three to five years-that describes how they will deliver on their brand promise.
These companies try to turn things around:
They first start by defining metrics or KPIs–for example, improving the NPS metric by 10 points-and then prioritize the customer experiences that will deliver these results.
Companies that implement experience-driven growth strategies must also devote resources to changing organizational cultures and building new capabilities, both among executives and customer-facing staff.
These companies are also concerned with understanding customer pain points that hinder growth such as:
- Complicated purchasing processes.
- Logistical problems that hinder recurring purchases.
- Lack of cross-channel integration.
But rising customer expectations mean that they will increasingly demand more effort for engagement and loyalty. In addition, companies are presenting an increasingly diverse portfolio of products and solutions, creating complexity in service, billing and logistics.
A radical change in the way companies approach customer experience is necessary if they want to stay ahead of their competitors. To this end, platforms such as Allswers with its free trial offer multiple views on how to address all the different points that make up the customer experience.
The challenge of achieving sustainable and profitable growth is especially difficult for traditional companies. Experience-driven growth is a different approach that starts with delivering an exceptional experience to existing customers that improves key financial metrics through cross-selling and net revenue retention throughout the customer lifecycle.