Customer Service Versus Customer Experience: What’s The Difference…And Why It Matters

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Customer Service Versus Customer Experience: What’s The Difference…And Why It Matters

September 24, 2015 by Bruce Jones, Senior Programming Director, Disney Institute

In case you’ve missed it, the term “customer experience” is everywhere in business these days. In fact, some experts have declared that focusing on the customer experience has become the single most important factor for an organization to achieve business success—creating a significant point of differentiation and competitive advantage.

But, what exactly is customer experience? How does it differ from customer service? And, how focused or concerned should your business or organization be about it? These are all great questions we hear from participants in our professional development training courses, so we thought this was a great opportunity to dive a little deeper.

First, let’s start by defining customer experience. According to Harvard Business Review, it can be defined as “the sum of all interactions a customer has with a company.” This can include everything from a customers initial awareness or discovery of a company, product or service, through the purchase and use of that’s company’s products or services. Together, these all add up to the critical moments—what we call touchpoints—that create an organization’s overall customer experience.

Then, to better understand what customer experience is (and isn’t)…consider this story about a car dealership we worked with several years ago. Although sales were solid, management was concerned that their customers and employees were not happy. So, we worked with their team to help them intentionally create, design, and implement an experience that would exceed customer expectations at every key touchpoint. By helping them think differently about aligning the entire organization - the employees, the processes, and the physical plant itself - around the customer experience, the results were dramatic, increasing sales by 26 percent over the past few years. 

The key learning, we have found, is that “customer service” is too often thought of as a specific department, rather than as a core value and strategic imperative, owned by the entire organization. Consider that the traditionally defined “service department” could soon be obsolete, because there are so many interactions consumers have with your business before, during, and after any one specific touchpoint.

“Customer experience,” on the other hand, encompasses every aspect of a company’s offerings—from the quality of its customer care to its reputation management, marketing, packaging, product and service features, ease of use, reliability and beyond. As we like to say at Disney, while no one “owns the Guest,” someone, in every case, “owns the moment.”

Today, this distinction is more important than ever, especially if organizations want to continue to differentiate themselves from their competition. Customer experience must be understood and approached holistically, with those responsible for each area of a company’s offerings giving intentional thought and focus on how their decisions will shape and impact the overall customer experience.

So, there you have it. Customer experience goes beyond customer service alone, and is far more than any single leader, employee, or department. It’s about truly understanding your customer as segments and as individuals, architecting a plan for delivering exceptional experiences, and then empowering employees to deliver it across all touchpoints. And, it’s about developing leaders to reinforce the beliefs and behaviors that support exceptional customer experience.

Bottom line, if your organization wants to advance its customer experience, you must make it a strategic business priority. Here are three ways get started.

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