Executives who had carefully crafted omnichannel strategies to create unique, compelling customer experiences have had to throw out their playbooks and improvise to keep pace. With a consistent commitment to enhancing their core customer experience, it recently sold to Unilever for $1 billion. Companies that invest in the wrong capabilities could find themselves on the outside as competitors that can offer exemplary customer experiences cement their advantage. In fact, one-half reported reducing their spending in the past two weeks, and 40 percent of Americans and 44 percent of Europeans expect to continue spending less in the next two weeks. Elevating customer experience excellence in the next normal 3 to be a priority for consumers, but people are also craving the return of quality engagement. Constance Emmanuelli is an associate partner in McKinsey’s Paris office, where Nicolas Maechler is a senior partner; Nimish Jain is an associate partner in the San Francisco office, where Anna Thomas is a consultant; David Malfara is a senior expert in the Orlando office, Stefan Moritz is a senior expert and senior design director in the Stockholm office, Kevin Neher is a senior partner in the Denver office, and Adrian Nelson is a consultant in the Washington, DC, office. Urgent-care clinics have established drive-through service to allow passengers to get fast, safe COVID-19 testing without physically entering a health facility. Our mission is to help leaders in multiple sectors develop a deeper … Increasing Demand And Development For Next Generation Biologics In The Pharmaceuticals Market 2020. McKinsey research found discretionary spending has fallen 30 to 60 percent, and retail transactions have dropped by 20 to 50 percent. Customer experience has never been more important. 174 0 obj <> endobj endstream endobj 212 0 obj <>/Filter/FlateDecode/Index[40 134]/Length 27/Size 174/Type/XRef/W[1 1 1]>>stream %PDF-1.4 %âãÏÓ 0000025529 00000 n Companies seeking to emphasize safety should focus on designing a contactless end-to-end journey, but with thoughtful human touches. Nearly all organizations, whether traditional companies or start-ups, are reorienting their business models to be more digital. For more, see “ Elevating customer experience excellence in the next normal ” and “ Adapting customer experience … Tesla’s sustained commitment to reinventing the car-buying process using digital has proved especially prescient. To get a better understanding of the next normal’s contours, our analysis evaluated consumer trends along two criteria: user growth since the pandemic hit and the likelihood that these behaviors will continue (exhibit). ... Also be sure to give reasonable estimates for when things will be back to normal. This trend is likely to continue. Every possible activity—from meals and groceries, to finance and education, to fitness—now has a digital or online equivalent, many of which have seen soaring usership. The situation continues to change by the week and can vary dramatically by region. The customer experience landscape is evolving with each passing week, so companies can’t “set it and forget it” and still expect to stand out. collaboration with select social media and trusted analytics partners Instead, executives should consistently monitor business trends—what is growing, stagnating, and declining—against their current business strategies to identify new opportunities in the fast-accelerator and potential-to-stick quadrants. Please click "Accept" to help us improve its usefulness with additional cookies. Please try again later. 0000013797 00000 n They should focus on creating a virtual, digital experience that is on par with—or even better than—the in-person experience. The Future 5 Customer Experience Trends For The Next 5 Years From pre-mortems to predictive analytics, companies are leveraging technology and new thinking to attract, acquire, and … ... and it started by taking a look at the customer experience. tab. An early application allowed the team to respond to delays and cancellations more effectively. Flip the odds. 0000013028 00000 n The predictive insight from the system allows a broad range of use cases, from near-real-time performance measurement, to strategic planning, to proactive engagement strategies like personalization and “surprise and delight” programs. For customers shopping in-store, the company offers Kroger Pay, a contactless payment tool rolled out before the pandemic. Cô±Ö&Kåð Qf`‘f ‡/ŸärF Þ` 9áQÇ Elevating customer experience excellence in the next normal Companies that make the right investments now could build an enduring advantage in serving customers. Shelter-in-place requirements have stimulated record-high engagement for online and digital platforms, and customers are quickly replacing or complementing physical and in-person activities with digital equivalents. Simple adjustments, such as methods to facilitate physical distancing in stores, have already become ubiquitous, if not compulsory. Now is the time to make investments in the data, technology, and systems required to deliver exceptional experiences in a rapidly changing environment. 0000006170 00000 n Blake Morgan is a customer experience futurist. Digital channels will help companies both meet changing customer needs and expectations and prepare for future industry disruption. An active online community of owners augments Tesla’s customer support. Some companies have expanded their digital capabilities by evolving their portfolio through M&A or by divesting lower-potential holdings. 0000004481 00000 n And on top of it all, companies need to figure out new ways to create a differentiated customer experience. Together, this mix will continue to evolve and form the foundation of the next normal. Many companies, from mobile carriers to food-delivery services, have made targeted investments to build or augment their digital capabilities. As the crisis peaked across Western economies, more than one-third of Europeans and Americans said their income has been negatively affected by COVID-19. 0000006792 00000 n Customers are significantly scaling back their spending across nearly all categories, anticipating tougher times ahead. As companies prepare for the long haul—what we refer to as the “next normal”—the path forward is anything but clear. 1. By doubling down on ease of access and use across digital and physical channels, companies can improve both customer safety and satisfaction. The impact of COVID-19 on customer behavior has been sweeping and immediate. Overall spending is expected to decrease by 50 percent across all consumer categories, but certain shelter-in-place necessities will rise: groceries (up 14 percent), entertainment (up 13 percent), and household supplies (up 3 percent). These early movers offer a valuable point of reference for how to proceed. Even retailers without a strong digital presence, for example, could partner with online marketplaces or delivery services. She is the author of the new book "The Customer Of The Future: 10 Guiding … Three … Three priorities will be key. 0000004983 00000 n 174 40 Revolutionise your CX delivery with these actionable insights. 0000009737 00000 n 0000030099 00000 n 0000029615 00000 n To expand their virtual presence, companies will need to assess their capabilities and then determine how best to augment them. 0000029224 00000 n Customers can use an app to handle all requests, from onboarding to service, roaming, and package changes. Pico+ addresses the challenges arising from a constantly shifting marketing landscape. Companies that review the digital portfolio, map out core interactions on the value chain, and focus on key customer-experience issues will be well positioned to please customers regardless of how expectations and preferences evolve. 0000005489 00000 n We strive to provide individuals with disabilities equal access to our website. McKinsey on Elevating Customer Experience in the Next Normal June 4, 2020 As companies across the globe adapt—and even reinvent themselves—during the coronavirus crisis, … To broaden its online reach in China, the carmaker partnered with Alibaba on a Tmall online store. McKinsey COVID-19 US Consumer Pulse Survey, April 2020. We'll email you when new articles are published on this topic. Leading retailers have moved quickly to offer online ordering with delivery or safe pickup. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. For example, convenience will continue to be a priority for consumers, but people are also craving the return of quality engagement. In business, customer experience is a battlefield. From December 2019 to March 2020, Tesla saw its sales in China double while other carmakers experienced a 50 percent drop over the same period. %%EOF To respond quickly to a constantly changing environment, companies will need to have a broad base of employees that know how to empathize with the customer, apply customer insights, and redesign the experience through digital excellence and contactless engagement. Most transformations fail. cookies, McKinsey_Website_Accessibility@mckinsey.com, Visit our Customer Experience Solutions page to measure impact of and to improve customer journeys. 0000007114 00000 n In this environment, executives must have the skills to prioritize what is most important and avoid the temptation to simply chase the latest news or become distracted by shiny objects. These efforts require executives to reimagine and reform customer experience through thoughtful, targeted investment, starting with three priorities. In the next normal, winning companies will capitalize on opportunities to adapt to evolving customer behaviors, deliver short-term business success, and strengthen their long-term strategic positions. 0000001697 00000 n 0000003217 00000 n The grocery chain designed a fully “click and collect” store to fulfill online-order pickup. startxref This article was written collaboratively by the global leaders of the McKinsey Customer Experience Practice, a group that spans different regions and includes: Constance Emmanuelli, Nimish Jain, Nicolas Maechler, David Malfara, Stefan Moritz, Kevin Neher, Adrian Nelson, and Anna Thomas. Looking at the broader picture, CRM can transform your company in the new normal, and help you build a popular and authoritative brand in a competitive online market. The increase of digital also means that companies will have more dynamic data at their fingertips. 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