Business & Innovation- August 31, 2020
Understanding our customers: the way to delivering an amazing experience
Our mission at Delivery Hero is to always deliver an amazing experience. But how can we do that? How do we figure out what is important to our customers? What are their expectations towards us?
The objective of the Global Customer Experience team is to answer these questions. Here, we will discuss why customer experience is important and how we measure it at Delivery Hero.
To summarize in a nutshell, we need to listen to our customers, vendors and riders. We need to capture the journey from their point of view, understand pain points and delights, improve processes, and ultimately earn their loyalty by acting on our findings.
Simultaneously, we need to keep our eyes open for developing trends and incorporate this into our work. Achieving higher levels of Customer Experience is not a functional objective, but an organizational one.
Why is Customer Experience important for Delivery Hero?
Companies have long focused on operational data such as customer churn, reorder rates, and profitability by brand. However, operational data is becoming less of a competitive advantage. It is only available for the past and not always the best indication of what is to come in the future.
The Global CX team at Delivery Hero is responsible for advocating a customer-centric mindset and acts as an enabler to focus more on Experience Data: the beliefs, emotions, and sentiments of our customers. In other words, enriching operational and financial data with experience data really allows us to provide the best service to our customers.
Providing a good customer experience is important because it:
- affects customer satisfaction
- delivers customer loyalty
- influences expectations
- instils confidence
- supports the brand
- creates emotional bonds with customers or, conversely, leads to emotional scarring
Understanding both customer outcomes – those currently received and the ones they would like to experience – will help us to find and fill the gaps between provided and received service in order to deliver a better customer experience.
As voiced earlier, it’s important to keep the customer experience in mind throughout the entire organization. We aspire to understand local challenges together with our teams on the ground. Experience and research are crucial for a company to move towards a customer-centric mindset. Additionally, the Global CX Team actively collaborates cross-functionally with all the different departments, such as Product, Tech, Marketing, Operations, Sales, Logistics, etc.
How do we measure Customer Experience at Delivery Hero?
Customer Experience measurement can be either conducted after a transaction or at a key moment of a customer journey. If the measurement is merged with operational or transactional data, we can understand the full context of customer behavior and sentiment and will be able to take informed action.
At Delivery Hero, we decided to use the Net Promoter Score (NPS) as the overarching key performance indicator for customer loyalty. The NPS is a management tool for assessing the likelihood that customers recommend a product or service, calculated based on the response to a single question:
“On a scale of 0-10, how likely are you to recommend [name of brand] to a friend or colleague?”
Responses with a score of 9 to 10 are called Promoters and we have observed value-creating behaviors like high reorder frequency, being lifetime customers and giving positive referrals to potential customers. Customers who rate us with 6 or lower are called Detractors and might not show value creating behaviors. Responses of 7 or 8 are labeled as Passives and their behavior falls in between Promoters and Detractors. Net Promoter Score is simply the percentage of Promoters minus the percentage of Detractors.
As mentioned, in our business we have three main customers: end consumers, vendors and riders – the so-called “Magic Triangle” – and we measure NPS for each of them.
We believe these customer groups are related to one another and, in turn, impact each other, (e.g. customers who order more frequently, increase the potential business for vendors and riders in the area, etc.), therefore we need to understand the overall holistic experience to deliver an amazing experience.