Catchpoint, a monitoring as a service company, believes the four ‘Ps’ of marketing – product, price, placement and promotion – needs to be expanded for today’s 24×7 online world. “Performance is the fifth P of the marketing mix, said CEO Mehdi Daoudi.
The company, which was founded in 2008 by four former DoubleClick/Google executives, helps organizations monitor the performance and availability of their online systems. It ran 2.9 billion tests for more than 100 customers in 2012, and there is a very strong correlation between load-rate latency and bounce rates, he said.
“At the end of the day it’s about user experience,” said Daoudi. “You have to respect customers… you’re not here to use them as lab rats” to test out Web site changes.
He said one of his former employers, Google, did a test a couple of years ago, introducing fake latency to see what impact it had on users. Users left, and took a long time to come back.
In a world where customers have other options (thank you YAHOO!), customer experience, or CX, matters, said Daoudi. There is a perfect correlation between performance and user response. “People have choices, they will choose on a variety of criteria, and one of them is performance.”
According to a Temkin Group report on 5,000 U.S. consumers about their experiences with 179 companies across 19 industries, published in December, more than 60% who had a bad experience cut back on their spending, and many stopped completely. However service recovery helps: for every level of improvement in how they responded to a bad experience, companies were rewarded with more sales.
Another survey, this time looking at the ROI of CX through the eyes of employees, found that CX leaders are more than four times as likely to financially outperform their competitors. When the more than 2,400 U.S. employees compared their company’s customer experience as well as its financial results to the organization’s competitors, 76% of CX pacesetters financially outperform their industry and 6% underperform, and 19% of CX laggards financially outperform their industry and 23% underperform.
Prior to cofounding Catchpoint, Daoudi spent more than 10 years at DoubleClick and Google, where he was responsible for Quality of Services, and using internal and external monitoring solutions. He used to spend over $2 million a year to monitor performance, which was one of the reasons he left Google to form his current company.
While this may have been true 10, even 5 years ago, managing CX is no longer something just mega-corporations can afford, he said. “There are no more excuses. There are different ways, different price points, and different options.”
While a small minority of organizations has been at the customer experience game for years, the vast majority is still dabbling — and some have yet to even realize the importance of customer experience as a business driver, according to the 2013 Customer Experience Predictions from Forrester Research. It recommends the following steps for organizations that want to accelerate their customer experience efforts in 2013:
-determine their current level of customer experience maturity;
-get their entire organization involved;
-fortify themselves for a technology vendor onslaught; and,
-invest in people and new methodologies.