Alain Portmann, Partner and Head of Strategy & Insight at House of Kaizen, has a long history in the industry, which has shown him that while formulas work in media, it is principles that drive consumer experience. Unfortunately, media on its own will not solve you commercial challenges. We assume that the consumer is a passive and obedient recipient and that they will automatically route to the most optimal decision. We aide this by placing incentives and disincentives to shape consumer behaviour. However, in reality, there are things that we have little control over.
Challenges in Customer Experience
House of Kaizen sits at the middle of the consumer journey, and from this position, they can see 2 of the biggest challenges that come up in Customer Experience. The first challenge is that optimising the customer journey is daunting and messy. It’s virtually impossible to tackle the whole of the customer experience at once. The solution, then, is to break up the journey to understand the pressure points within it.
The second main challenge is that teams focused on retention and teams focused on acquisition are kept in silos, even though often they are working with the same individuals. The siloed approach results in different sets of competing KPIs and teams, preventing a seamless experience for the consumer.
The solution that House of Kaizen uses is the Asset Optimisation Model, which breaks up the customer journey into 6 components that a brand can optimise to improve CX:
- Customer Interactions
- Media – both paid and earned
- Brand & Value Proposition
- Content and Forms
Case Study: Subscription Client in EMEA
In this case study, research and behavioural insights show that price accounts for 85.3% of reasons to switch from this brand to a competitor. However, was it actually the sticker price or was there something else which was causing friction? Further insights showed that at the core of these concerns was a question of value for money.
With the main problem being pricing, House of Kaizen decided to take a step sideways and look at optimising the content and form assets with a cart redesign. Before the project, 50% of traffic was lost at cart level as consumers didn’t have a good understanding of the product’s value for money. So to remove friction and improve conversion rates, improvements were made to the design, hierarchy of information and the way that the information was split up and presented. Cart optimisation saw an uplift in conversions.
In order to further improve conversion rates, they also optimised the auto-renewal process; something which is a huge source of anxiety for customers. Improvements to remove friction by putting calendar reminders that you’re up for renewal, and generally removing the anxiety from auto-subscribing. However, they did not see any kind of uplift, because this was trying to rationalise something that cannot be rationalised based on data alone.
You cannot be both data-driven and strategic. Data-driven is a short-term thing. The best thing is to be both data-driven and data-informed: pulling from each when you need to.