Brand promise and CX partnerships in the Experience Economy
As consumer expectations have evolved over time, businesses have been exploring new ways to move up the value chain. Customers no longer just buy products or services; they also buy into the experience that comes with them. It’s what we know as the Experience Economy.
We are well into the Experience Economy era, and brands are all facing the same challenge: to deliver their brand promise with outstanding CX at every touchpoint of the customer’s journey.
While some leaders choose to create external partnerships as a way to live up to these new standards, how are these CX providers delivering an excellent partnership experience in return?
The Promise of the Experience Economy
The idea that experience itself is a valuable commodity is not new. The term "Experience Economy" was coined by James H. Gilmore and B. Joseph Pine in the late 1990s. It describes the modern economy, where consumers no longer simply purchase products or services; they seek positive experiences with brands. This shift is now a business reality: today, consumers often prioritize the experience over the product or service itself.
Gone is the time when businesses could only focus on manufacturing and selling products to make money. As the buying power of consumers grew, so did the competitive landscape. In the pursuit of growth and increased revenues, expanding a portfolio by complementing products with services has been a proven strategy for many—especially for those who leveraged customer experience as a key differentiator. But in today’s world, with the growing complexity of customer touchpoints—both physical and digital—delivering a good and consistent customer experience requires a clear vision, as well as a well-thought-out strategy and impeccable execution.
Living Up to a Brand Promise
Anyone who has tried to manage customer experience from end-to-end knows it’s not an easy task. When it comes to CX, to knock the ball out of the park over and over again means we not only need to design products and services with CX in mind, but we also have to deliver an elevated brand experience, even after a product or service has been delivered. That’s where things can get more complicated. It’s one thing to wow the customer and get their business with good products and services; it’s another thing to live up to that wow factor over time. When a product or a service no longer holds up to a customer’s expectations, it is up to customer experience teams to deliver the brand’s promise.
Maintaining that brand promise becomes less of a challenge and more of an opportunity when technology, processes, and people have been integrated with the purpose of CX. The brands we admire the most are those who are very good at integrating technology, implementing processes, and providing a human touch to their customer interactions. Some have the knowledge and means to design, build, and deliver every touchpoint of their customer journey in-house. Others simply prefer to partner with specialized firms. There is no right or wrong.
We can all agree that not everyone is an expert at everything. Like performing a play in front of an audience while writing and producing it, delivering outstanding customer experience while trying to design and build a product at the same time, can be overwhelming.
Therefore, some brands prefer a partnership approach, choosing to fully or partly outsource the design, build, and delivery of their end-to-end customer experience, and focus on their core competencies. What truly makes this approach valuable is the peace of mind that comes with it. That’s why creating a CX partnership is such a common practice. However, one critical element of success is often overlooked: the partnership experience itself.
CX Partnership in the Experience Economy
“Creating a CX partnership is a common practice. However, one critical element of success is often overlooked: the partnership experience itself.”
In today’s Experience Economy, customer experience is key to the success of any brand. Creating a new CX partnership is not just about cost optimization. Sure, the cost savings can be very attractive, but choosing a partner based solely on that criterion can hurt a brand. Outsourcing the design, build, or delivery of customer experience involves significant change management, a crucial aspect that both parties often underestimate. One of the most common pain points in outsourcing CX, such as contact centre operations, is integrating new capabilities into a brand’s existing operational structure. Many brands are hesitant to outsource due to the perceived complexity of implementing a new system, managing an external workforce, or aligning everything with their established operations.
According to a Ryan Advisory study, this integration challenge is one of the top reasons why brands are reluctant to outsource their customer experience. If not managed properly, the partnership process can become a burden. To achieve the peace of mind that can come with outsourcing the operations of a customer touchpoint, business leaders must work with partners who can integrate technology and resources seamlessly, and manage the change hand-in-hand with them. In the quest for cost optimization in this Experience Economy, it is crucial not to lose sight of the most important experience in the process—the partner experience.
People, Processes, and Technology
One of the most overlooked phases when developing a new partnership is conducting an initial audit of the brand’s existing CX operational system. This audit is crucial, as it provides the CX partner with a comprehensive understanding of the brand’s strengths, weaknesses, and areas for improvement. This insight is essential for designing, building, and delivering a good and consistent experience from end-to-end.
Another key element in a partnership is the ability to quickly adapt to the brand’s evolving needs and objectives. Frontline teams are often the first to feel changes in the market. A strong CX partner listens closely to these insights, collaborates with the brand's leadership, and establishes systems that can rapidly incorporate changes into their operations. Outsourcing firms that can pivot quickly and adjust to these shifts are the most valuable partners.
In the end, delivering exceptional CX across multiple touchpoints is inherently complex but key to a brand promise. Outsourcing CX activities to specialized firms is the chosen approach of many leading Canadian brands. In the race for digital excellence and cost optimization, businesses should not underestimate the importance of choosing the right CX partner to combine people, processes, and technology the right way, as well as selecting a partner who has the ability to help them carefully manage the change that comes with partnering up. The right partner will not only help improve customer experience but will also unlock the full benefits of CX outsourcing: the peace of mind that comes from a well-managed partnership and the opportunities to pivot quickly in a fast-moving consumer market.
About the Author
Nathalie Siphengphet leads Nordia's brand strategy and growth in Canada and internationally. A graduate of McGill University in Communications and Public Relations, Nathalie built her marketing career in the aerospace and high-tech industries. She brings with her over 10 years' experience in brand strategy management and public relations with global organizations such as Bombardier and CAE, two flagship aerospace companies synonymous with relentless pursuit of excellence in partnership with their airline customers.