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A Customer Experience Vision Statement Is

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10 views

A Customer Experience Vision Statement Is

Uploaded by

barasacecilia33
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What are Customer oriented vision statements?

A customer experience vision statement is an aspirational statement on how your


organization has chosen to service its customers. It is a standard that employees should
be able to strive for, and a banner that your company can look to when making
decisions that will affect its customers.

Customer-oriented vision statements define business in terms of the provision of


solutions to customer needs. Customer-oriented vision statements provide managers
with more strategic flexibility than product-oriented missions and leave open the means
of how to meet a need.

I agree that it is better for a firm to keep their vision statements customer oriented
rather than product oriented because, Customer orientation is essential for achieving
customer satisfaction. Companies that adopt a customer-oriented culture between
departments enjoy the following three significant benefits;

1. Improved Customer Satisfaction

Customer-oriented companies help their customers succeed, so it stands to reason that


this approach improves overall customer satisfaction. If you deliver a great experience,
customers will come back. They’ll also tell their friends, in fact, 73% of customers say
customer experience is a deciding factor in deciding to buy, and 77% will recommend a
business to a friend if they have had a positive experience.

2. Competitive Advantage

Many companies say they are customer-oriented, but it seems customers disagree.
Only 38% of customers say they feel the employees they interact with understand their
needs, and 82% of consumers say they are disappointed by brands. Companies that fail
to meet customer expectations present a golden opportunity to competitors to gain an
advantage.

3. Greater Profitability

Customers are loyal to companies that put them first, and many are willing to pay more
for prioritization. In fact, 47% of millennial say they would pay 20% more for an
impressive experience.

Customer retention is critical since it costs five times more to earn a new customer than
to retain one. At the same time, companies have more than a 60% chance of selling to
an existing customer versus just a 5 to 20% chance of recruiting a new customer.
Keeping customers reduces costs.
Consider how important Customer Lifetime Value (LTV) is, and it’s not surprising that
customer-oriented companies outperform their peers by 80%, and 84% of
companies that work to improve the customer experience yield increased revenues.

Define Organizational core values

These Organizational values or corporate values are a set of abstract ideas that guides
employee actions and thinking.

Organizational values shape your organizational culture and create a sense of


commitment in the workplace.

Whenever you ask a group of people in a workshop or a conference about what


organization values are, you invariably get to hear words like Equality, Loyalty, Integrity,
Respect, Innovation, Teamwork, Efficiency, and so on.

At the same time, these sound strong, meaningful, and concise. Research shows that
these are the most common set of words used as a part of values and are probably
meaningless in most cases.

They have become so common that they might even be a part of your organizational
values.

Organizational values have a huge impact on both internal organization's external


matters of an organization how employees treat one another and show how partners,
customers, and other parties are treated.

However, mere words mean nothing until they are engrained in their practices. After all,
actions are always louder than words.

Let’s take the example of Google. One of their fundamental values is “Focus on the
user, and all else will follow.”
This value is undoubtedly delivered each time you search for something on the Google
search engine. You will find answers to any question – from the most common to the
weirdest – within seconds and on the first page!

Values are meaningful only when they are expressed through everyday behaviors.

Arguments against top down strategies and scenario planning


Strategic Planning
Strategic planning refers to a process in which an organization’s internal and external
environment are systematically analyzed and explored to develop its strategy. It can be
referred to as ‘long-range planning’ and it can cover 3-5 years in most business sectors
but 15-20 years in oil sector. Such planning can be done using two approaches which
are discussed next.
Prescriptive Approach to Strategic Planning
Under this approach, mission, vision and core values are stated, and objectives are
defined before strategy implementation starts. This implies that the organization will
intentionally plan and formulate a rational deliberate/intended strategy according to
priorities and intentions of top management. Therefore, the approach follows a top-
down hierarchical structure and authoritative management style. The prescriptive
process is linear: from strategic analysis to strategy development and then to strategy
implementation. Therefore, strategic planning is seen as an orderly, rational,
deterministic and systematic process suitable for stable business environments. This
approach has three schools of thought: design, planning and positioning schools.
However, discussing each of these schools is not in the scope of this article.

Disadvantages of Prescriptive Approach


Stifling creativity. Prescriptive schools (design, planning and positioning) are usually
associated with top-down management style and organization structure. This implies
that even if ideas can come from lower level managers, they have to be packaged
according to what top management needs to hear. This stifles individual initiative,
imagination and creativity.
Paralysis by analysis. An organization can be deeply immersed in analyzing the internal
and external environment and miss exploiting opportunities that come up. This means
that unchecked analysis can paralyze an organization’s operations.
Lack of information. It is not possible to have all the information needed to carry out
systematic strategic analysis. For example, information about competitor moves is
confidential and what is publically said may not be what is actually done.
Danger of strategic drift. A top-down management style makes strategies tend to be
adapted slowly as information slowly and cautiously moves towards the top, and may
reach a point when the realized strategy is not fit for the prevailing environment. The
organization will have faced the danger of strategic drift, and will not have benefited
from knowledge and skills of frontline staff.
Difficulty of systematic planning. Since the business environment is becoming
increasingly volatile, systematic strategic planning has become more difficult. This
means that the benefits of prescriptive approach are constrained by volatility and
turbulence in the business environment which makes it very unpredictable and
forecasting unpractical.
Limited rationality. It is not possible to make rational decisions all the time. Some
decisions are taken abruptly depending on prevailing circumstances, and cognitive
limits do not allow top management to take rational decisions and follow a linear fashion
as expected from prescriptive approach. This makes every deliberate/intended strategy
be also a result of some features of emergent approach which is discussed in the next
section.
Scenario Planning
For businesses, scenario planning enables decision-makers to identify ranges of
potential outcomes and estimated impacts, evaluate responses and manage for both
positive and negative possibilities. From projecting financial earnings and estimating
cash flow to developing mitigating actions, scenario planning is more than just a
financial planning tool — it's an integrated approach to dealing with uncertainty.

But it's more than just a way to recognize and mitigate risk or plan for growth situations.
Scenario planning is also about visualizing different representations of an organization's
future, based on assumptions about the forces driving the market — some good, some
bad.

Scenario planning is a process pioneered by the U.S. military, which today runs
exercises looking up to 20 years out to guide R&D efforts.

The following are arguments against scenario planning

 Scenario planning is a potentially enormous undertaking. It can be a lengthy process to


collect data and driving factors; for large enterprises, plans can take months to create.
 Factors that impact plans can change quickly. That means scenario planning must be a
living process, with constant updates as conditions and assumptions evolve.
We recommend that all companies perform at least rudimentary scenario planning,
even if it's in the context of a business continuity exercise. The process itself has real
value.

Differences between a firm’s intended, realized, and emergent


strategies
 Intended Strategy. The intended strategy is what you want to do. In fast-moving
environments, your intentions are really nothing more than hypotheses to be
tested against reality. If the founder of Ikea did sit down in his kitchen, it would
not have been the strategy he came up with. It would have been the intended
strategy.

 Emergent Strategies. As time passes, new ideas come into play. The emerging
strategies that seem sensible and fit into what you can achieve are integrated
into the deliberate strategy.
 Realized Strategy. After time has passed, and only in hindsight, can we see
what our realized strategy was. It will be a combination of the deliberate and
emergent strategies

The role of low level employees in the strategy as planned-emergence


approach
Low leveled employees are usually the once who carry out decisions implemented by the
high leveled employees. They play an important role in the strategy as planned-emergence
approach because;

 They are less resistance to change. Since strategy emerges incrementally, different
individuals and groups within the organization can be prepared for strategic changes
as strategy is formed and implemented simultaneously. Higher resistance would be
met if radical changes were to be implemented.
 They have the ability to exploit opportunities. Since strategy can be readjusted and
tactics shifted quickly, they can easily respond to changes in the environment thus
exploiting opportunities as they surface.
 They give higher chances of strategic success. Through experimentation, trial and
error, and learning, strategic options are tested as strategy emerges. This implies
that the learning that comes from experience can be a source of strategic success
and competitive advantage for the organization. This is especially possible since
strategy development is simultaneous with strategy implementation thus allowing
flexibility and readjustment as the environment changes.

 They facilitate strategic innovation. An organization that follows emergent approach


to strategic planning develops features of a learning organization. A learning
organization can be described as an organization whose culture facilitates continual
capture, sharing and utilization of knowledge and skills for continuous performance
improvement. Emergent approach facilitates such learning since ideas are allowed to
emerge from lower levels of the organization, debated and tried out thus
encouraging individual creativity, initiative, and innovation.

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