• Experience Management validates strategic investments on the basis of X- and O-Data
• Measure the target-group-specific user experience and in real time
• The most successful companies are Experience Companies
As Joseph Pine and James H. Gilmore stated in the 1998 article “Welcome to the Experience Economy”: “From now on, leading-edge companies – whether they sell to consumers or businesses – will find that the next competitive battleground lies in staging experiences.” The experience thus becomes the relevant unique selling point that is decisive for the success of a company.
Pine and Gilmore were right. Today’s most important companies are Experience Companies. Brands such as Apple, Amazon or Tesla have the highest revenues, strong customer loyalty and prevail in the War for Talents. They are at the heart of the major value-adding ecosystems.
What is an experience?
The experience refers to the experience we have with a company, how it affects us, how we perceive it and how we feel when interacting with them. This applies to different groups:
– Customer / Sales Experience
– Employee Experience
– Supply Chain Experience
According to a CEB study in Forbes Magazine, 71% of buyers who see added personal value are willing to buy a product and 68% are even willing to pay a higher price for it. Why do so many people buy an iPhone when there are significantly cheaper smartphones on the market that have the same features? It’s the buying experience Apple offers its customers.
The Employee Experience is the sum of all the experiences an employee has in a company. Important events in the Employee Journey shape this impression – for example, the application and onboarding process, promotions or leaving the company. A positive experience leads to more employee commitment in the long term, which has a direct influence on the success of a company. In addition, this strengthens the employer brand: employees speak positively about the company as an employer, which in turn facilitates recruiting and increases employee loyalty.
Experience determines the success of a company.
Basics for Experience Management
In order to implement Experience Management (XM) in a company, all important processes within the company must first be digitized. This includes, for example, the digital personnel file with contract documentation, salary increase letters, training certifications or other references.
It is only through the digitalization of such processes that user experiences can be collected in the form of feedback in real time and tailored to the target group. By collecting this data, trends can be recognized more quickly, and success can be easily measured. The collected feedback data is also called Experience Data (X-Data).
The trigger is typically a business transaction in a classic ERP system (such as SAP) or in processes such as Purchase2Pay. This business transaction is documented in the IT systems with the help of operational data (O-Data), such as a delivery note.
It is necessary to link this operational data with the experience data (X-Data) in order to receive feedback from users on their experience in the respective process step. Through Experience Management, companies can now obtain comprehensive and in-depth information on all transactions and business processes by being able to measure and interpret the user experience of customers, employees, suppliers and partners in relation to their business processes. Based on this experience, business processes and strategies can be agile and optimally aligned to the market. This creates essential competitive advantages.
Starting with Experience Management is easy. EASY itself conductied an Experience Study in cooperation with KPMG Wirtschaftsprüfungsgesellschaft AG. We presented this study and conclusions exclusively at the EASY WORLD. One concrete approach is the EASY XO App, which analyzes and visualizes X-Data with O-Data to provide real-time insights into the effects of user experiences.
The technical support with tools like Qualtrics, which was purchased by SAP, shows the importance of this development.
Unlike many buzzwords, Experience Management has long since proven through economic reality that it is more than just a trend. Companies like Apple and Amazon are Experience Companies that demonstrate how to develop an iconic brand. The relevance of this topic is confirmed by the successes of these companies. EASY products provide the perfect foundation for introducing XM to your company.
You can download the detailed study results, including guidelines for your entry into Experience Management, free of charge here.