I was recently listing to and interview of Caesars Entertainment Corporation CEO Gary Loveman, where he was talking about how his casino use analytics to power customer experience and not by just looking at value or profitability of customer visits. The example he gives speaks about tracking customers play with a card required for slot machines. If one player (player A) starts with a $100 and plays for 30 mins and walks away with $ 0 vs another player (Player B) that starts with $100 and goes to $150 but eventually after 1 hour 30 mins walks away with $0. In this example the one visit both have the same value but Player B would rate his experience as better to player. Thus Player B would be more likely to return and in the long run be a more valuable customer.
Caesars customer services agents may provide some offer to the less fortunately player to improve their experience. The first step is to recognize the poor experience the second is to do something about it. Loveman also states that “Through frequent flyer data we observe a customer as had a poor experience on an airline, the flight was delayed the lost their bag. Is it any mystery that they hate the airline? No, they hate the airline, you know that. So, if you want them to visit the airline again the next time how would you treat them? You’d want to acknowledge that the last trip was a bad one and you are going to try to do something to make it up. That is exactly the same idea, but the airlines never do that. “
I was on a recent flight that was delayed for about 3 hours due to several issues mechanical and weather related. To my surprise when I landed I had an email that stated they were sorry for any problems that the delay may have caused and offered me a travel credit. Similarly, prior departing on a separate trip a hotel chain sent me an email informing me of construction that was taking place at the location I was staying and offered to switch me to another location if I preferred. It seems to me that these industries have taken great steps in recent years to improve customer experience.
The first step is knowledge the second is action. There are several industries that are also aware of negative customer experiences and do nothing about it. CSP’s know when you have a dropped call (or hundreds of them.) MSO and ISP know when there network is clogged and your online experience is poor. Yet, they are content to do nothing about it. How much longer can CSP and MSO ignore customer experience? As markets evolve and become saturated and competitive reducing churn through better customer experience will play a bigger role, which organizations will be ready to take that leap?