Interactions in which customers put a high amount of energy to reach a satisfactory outcome. A study by and Bain & Co has shown that targeting consumers during critical Moments of Truth can significantly reduce churn. So what are Moments of Truth? Moments of truth are the interactions in which customers put a high amount of energy to reach a satisfactory outcome. Your customers can have thousands of Moments of Truth over the course of their lifetime. These moments, either positive or negative, will significantly affect your relationship with your customers and their perception of your product. Companies that focus on delivering great experiences during Moments of Truth actually grow faster than those that don’t. A study by Accenture showed that companies that prioritize customer experience and excel at both defining and executing that strategy, generate on average a 13% annual revenue growth rate. Companies who lag behind in defining and executing a customer experience strategy generate on average a -1% annual revenue growth rate. Moments of Truth vary greatly by company depending on how you interact with your customers, but there are a few Moments of Truth that span nearly every web and mobile company.
A survey by McKinsey’s reports that 70% of buying experiences are based on how the customer feels they are being treated. This is why your customer’s first experience is so important. But how do you craft a great first experience? Well, too often we’re worried about promoting things that we think are important. However, if you mine your customer usage data to understand what behavior drives long term customer engagement, you can build a first experience that truly WOW’s your customers. Take Google for example, they recently launched an onboarding tour that teaches you how to easily navigate the most valuable features of google docs. By mining usage data and gathering customer feedback, Google is now able to provide an onboarding experience that elicits an emotional “WOW”.
Changes in Customer Behavior
96% of unhappy customers never complain. And even worse, 91% of those unhappy customers leave and never come back. So what is a company to do? Even if you’re dedicated to providing an excellent customer experience, how are you supposed to fix a problem you don’t know about? This is why Moments of Truth are so important. Great companies: 1) track customer behavior, 2) use that data to understand when critical Moments of Truth occur, and 3) intervene if the data shows that the customer is behaving differently than they should.
But, that intervention has to be as near real time as possible, and that’s why having a system that can track individual user behavior and then automate engagement is critical.
Collecting and quickly responding to customer feedback is essential to addressing this third Moment of Truth. Research shows that when a problem occurs, 70 percent of customers will continue to do business with you if the problem is resolved. That figure jumps to 91 percent when the problem is resolved at the time the incident happens. By implementing in-app methods for both collecting customer feedback and responding to it, you can break down the barriers for getting customers to tell you when they have problems. This type of proactive customer service allows you to quickly resolve problems and then work to get your disgruntled customers back to a healthy and happy state.
Announcing features…that matter (new or old)
You might be asking yourself, “why the headline ‘features…that matter (new or old)’. Well, the truth is, for most companies, some features matter to one segment of customers and other features matter to another. Mining usage data to understand how successful customers in each segment use your product and then helping the unsuccessful customers in those segments use the features that most matter to them is how you truly create value for your customers. But doing this is hard. Even if you’re able to mine your usage data and slice and dice it by customer segment, you’ll likely find it difficult to shape your customer’s behavior. That’s because open and click through rates on email are continuing to decline and reaching out to each customers via an account manager is too time consuming and too costly. This is where real time, in-app messages that teach your customers how to use your product are incredibly effective. Take LinkedIn and Facebook for example. Once they launch new features, they provide an interactive way, via in-app engagement, to alert users about the new features. LinkedIn even takes it a step further and provides a guided tour of the new features. This ensures users both know about the features and can properly use them moving forward.