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Customer experience drives business growth

This article was based on the interview with Dan Gallagher of Slalom by Greg Kihlström for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:

Customer experience is a critical factor in driving business growth. In a podcast transcript, Dan Gallagher, senior principal product leadership at Slalom, discusses the importance of tying customer experience directly to value and business outcomes. He emphasizes that organizations need to understand that customers use products or services to achieve specific outcomes, not just for the sake of using them. Therefore, the customer experience should focus on delivering the desired outcome and creating transformational products.

Gallagher highlights the concept of the flywheel, which connects customer experience to the overall business process. Instead of treating customer experience as a separate entity, it should be integrated into the value chain, with the objective of growth or continuous flow of value. He emphasizes that good customer experience is essential for rapid growth in any industry. The better the customer experience, the better it is for business growth.

However, Gallagher also warns against the misconception of solely focusing on delighting customers without considering the desired outcome. He argues that customers seek outcomes, not just a pleasant journey. Therefore, organizations should prioritize understanding the outcome customers are seeking and ensure that their products or services fulfill those outcomes. A great journey to a bad outcome does not result in a good customer experience or delight.

To prioritize the right things and deliver high-value experiences, Gallagher suggests that product teams and organizations need to think about the behavior changes required for customers to achieve the desired outcomes. He uses the example of Uber, which successfully convinced customers to change their behavior by downloading the app, inputting their credit card information, and getting into a stranger’s car. The behavior change was significant, but the outcome of a better transportation experience made it worthwhile.

In conclusion, customer experience plays a crucial role in driving business growth. Organizations need to tie customer experience directly to value and business outcomes. By understanding the desired outcomes and the behavior changes required to achieve them, teams can prioritize the right features and deliver meaningful value to customers. This shift in mindset and approach allows for adaptability and continuous improvement, ultimately driving the business forward.

House of the Customer by Greg Kihlström is now available.
House of the Customer by Greg Kihlström

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