Take a closer look at each of your customers to build brand loyalty

Look at the numbers: the service sector is Canada's most important industry. From business startups to new job creation, service sector growth has been out-pacing others for decades.

To thrive in service today, businesses have to address the challenges that are unique to the sector: perishability (you can sell last season's styles on a clearance rack, but last night's hotel room is of no value at any price); fluctuations in demand; intangibility; inseparability (the product is the service); and heterogeneity (the difficultly in standardizing quality).

Over the years, tools have emerged to help the service industry address many of these challenges. Models have been developed to price perishables and forecast demand. But while the delivery and marketing of services has evolved, little attention has been paid to customer experience. And as much as 70% of brand perception is determined by a customer's experience with people.

While organizations have long focused on customer loyalty and retention with tactical programs such as reward cards and points collection, managing the customer experience has received far less attention. Customer experience is about more than excellent service at a physical location; it happens every time a customer interacts with a brand. Customer-experience management allows you to beat the competition, and delivering excellent customer experience can become your strategic weapon.

Organizations need to identify key customer "touchpoints"—any point of contact a customer has with an organization. These may be face-to-face, via a call centre, or interaction with a website. Different customers associate different values to the various touchpoints. Not every customer is going to embrace shopping online, but that particular tool is essential for those who do. Businesses need to place importance on touchpoints that are significant to their customers, not just the ones that seem important to the company.

Customers do not identify with or care about touchpoints; they are simply on a journey with a brand. As customers meander through the decision-making process, they move as suits their individual needs. Those who report an excellent customer experience usually attribute this to a series of positive brand interactions rather than a single wow factor. Likewise, frustrations usually come from a multitude of disappointments.

By understanding and tweaking the experience for all types of customers, you can meet, or exceed, expectations. Customers will become engaged with the brand, and engaged customers become loyal customers. These people are more than satisfied—they become "brand ambassadors."