The world has pivoted from being all about the product to everything experience. But how did we get here, what changed, how did CX become so important. We need to learn what came before, to understand how we got here. Customers have changed the way they make most of their choices regarding purchase. A decade ago, a tv ad or even new paper was enough to get the customer’s attention. Customers and businesses used to have a relationship that instilled loyalty. So when you had a customer, you had them for life. However, customers have changed with the changing times. The pressure to have a brand identity today increases exponentially with time, as customers’ perception of your brand is highly influential today.
The influence of the Internet and the tremendous technological advances that we have experienced over the decade or two have revolutionized consumerism entirely. The way customers think, research, interact, purchase, and spend has changed too. You must have read enough articles on CX, and it’s importance, what to do, what not to do, etc. But just like we use data to decide how to move forward, it is vital to understand how CX has changed over time and learn something. It is essential to explore case studies and material on how customer experience changed, what changed customers’ expectations for a better experience, and how we can be proactive in our cx approach rather than just fixing issues.
Customer experience has always been there; it just changed with time.
The Barter:
Customer experience existed when we did not have money, the Internet, or a penny. Even before we had the first industrial revolution and before they established the concept of customer. Barter system was something that people relied on for fulfilling their needs. Remember, each change had a lesson to teach; we kept the useful parts and discarded the rest.
Bartering was a complicated task, and it all depended on a single factor of how trustworthy is the individual with whom you trade. Which meant trading was based on trust, no warranty, no guarantee, no proof of authenticity. In other words, you could be exchanging services and goods for poor or defective products. Bartering was a skill that needed experience, or you could end up exchanging an item for less than what it is worth. It was hard to gauge the value of your item, making it easy to believe that the thing you want is more valuable than it is. Typically, cities, as well as its surrounding agricultural areas, are not self-sufficient. Usually, people trade for things such as raw materials. Your options were limited, and the negotiation for the exchange depended on what you were offering. To get something you need, you had to offer something they might have value for. And if you provide a defective item, it would impact every exchange that followed. It is not a practical approach. There was no way to know if what you are offering will have a buyer in the market. Customer experience was non-existential.
Take away: Build Trust, it is the foundation on which relationships are built.
Before the Industrial revolution:
We invented money and came a long way from bartering. Customers’ choices were relatively restricted to local businesses. Considering the transportation facilities during those days, customers preferred a shop or store close to them. Business owners had a small market, every customer, and the way they perceived them was imperative. Business back then knew who their customers are, what they want, and need. Shop owner to staff, everyone had a good relationship with their customers. Retention was critical as local businesses relied on regular customers, which meant that customers could receive an outstanding customer experience.
Now you must be wondering what customer experience would look like back then – it boiled down to interaction and making a connection. Your customers are seldom people who are located close to your business or store. They did their utmost best to build a relationship with potential customers and treated old customers with respect. This helped them to create a very loyal customer base.
Businesses were usually family-owned, local shops, a small business-like supermarket, craftsman, farms, small-scale manufacturing, etc. Customers had limited choices based on what is available at your local store. We all have frequented a shop where we know the shop owner and the staff by their name. We greet them, ask them about their day, etc. That was most businesses before the industrial revolution took place, and railroads became public transport.
Take away: Inculcate a good relationship.
Industrialization:
The two significant issues that were a major roadblock was the limitations. Getting it from one place to another, transportation and producing, making goods available, manufacturing helped change that. Transportation was a big issue when it came to getting things. With better transportation, customers could get something that was out of reach before. Suddenly there were options, choices, and products that you did not have before. It bridged the demand-supply gap; it was a fundamental shift for businesses. Technological advances enabled people to travel further, explore more territory, and expand their influence over larger and larger areas. Business was booming, the barriers were no longer there, and customers had a more extensive choice of products and services.
While the distance between the goods and customers was reducing, there was a new gap that consumers were facing. The close relations between shop owners – customers, were fading and, in some cases, even lost, so did customer experience. Customer service was no longer the only differentiator, but the one that got neglected.
Industries were blooming, and there were a variety of products that were available now. People were no longer restricted to shopping from the closest shop, as traveling became easy.
That was just the result of the first industrial revolution, the second introduced electricity, and in a moment, we’ll think about the third revolution.
Take away: Accessibility is a significant factor for most customers.
Electrifying effects:
Horse carriages could only take you so far, but with railroads, things changed. Just when people were getting used to it, they discovered electricity and telephone. The streets were lit up at night, and people did not have to travel to speak with each other. The competition was high, signboards and telecalling was the new way of attracting customers. Businesses knew that they are not the only options customers had any more; it also meant that they too could reach other customers. Telephones made it easier for customers to contact businesses; you could place an order on the phone.
Electricity made everything glitter, and loyalty was becoming a thing of the past. It was indeed a good time for business. If you ever compared the time it took to get them back then to what it is like today, you would respect the patience they had, and this was an improvement.
Take away: Advertisements can open new doors.
The Internet Age:
Customers were now used to having options and choices, but they were not ready for what the internet had in store for them. By the way, this was the third revolution. There are many ways people define it, but in more ways than one, the internet brings the world closer. Electricity and telephone gave businesses a new way to reach customers, but the internet opened a world of possibilities. Anyone could sell goods and services in the connected world. We were not limited by geographic location or distance anymore. Sitting in one corner of the world, you could connect with someone in the other corner of the world. Customers could find information about companies, their services, pricing, and competitors. Pricing played an important role; you could lose a customer to a competitor offering the same services at a lower cost. Customer service and customer experience had not picked up pace yet.
Customers could switch to another brand or business with a single click. Customers now have the information and knowledge they need to make an informed decision. Slowly the internet was getting crowded, with more and more businesses going online.
Reviews and recommendations were taking the front row; they played an essential part in the decision-making process. More and more people started sharing their experience with a business online. Customers are used to reading reviews online before making a purchase.
Take away: Reviews and recommendations are essential.
Social Sensitivity:
It did not take long for digital marketing to pick-up pace. Customers were making the switch from shopping offline to online. People wanted to know what their brands had to say. And brands were sharing as much content as they could. Social media gives brands a platform to show their human side, it also increases brand awareness amongst their audience. Customers became more sensitive; one wrong post could mean the end at worst and a significant loss at best.
Customers’ way of reaching business changed with each invention, physically visiting the shop, dropping them a letter in the mailbox, calling them, and writing an email, reviews, to social media posts.
It became necessary for brands to stay connected with their audience, but without feedback, every effort was useless.
Businesses started shifting the focus back to customers, asking for feedback and improving their performance. Asking and acting on it.
Customers now had the power to write to the world when they had a bad experience with a brand or product.
Take away: How will customers come to you if they don’t know you exist – Brand awareness.
Customer experience was once again the epicenter of businesses. We started with building a relationship with customers, and there were many ups and downs in the path, but each step brought us back to the same things. Human elements and values have always played a vital role in the journey of CX.
Author Name: Krause Leia
Author Bio:
Krause is a passionate content marketer and a market researcher who is on the spree to capture multiple facets of industry through creativity and innovation. Krause is a content geek who writes for market research, digital marketing, and startup niches.
LinkedIn– https://www.linkedin.com/in/krause-leia/
