In the world of business, every interaction matters. I’m talking about table-stakes touchpoints—those critical moments when customers connect with your brand. The concept of “Moments of Truth” was popularised by Jan Carlzon, former president of Scandinavian Airlines (SAS), in the 1980s. His idea? Each time a customer interacts with a business, they form an impression.
This strategy isn’t just a relic of the past; it’s a powerful framework for today’s companies striving to enhance customer experience and loyalty.
Understanding Moments of Truth
Carlzon’s approach came during a challenging time for SAS. The airline was losing $17 million annually and ranked low among European carriers. But with a focus on customer interactions, everything changed.
- Within a year, SAS soared to No. 1 in punctuality.
- By 1983, it was named Airline of the Year by Air Transport World.
The secret? Managing every customer interaction. Carlzon identified around 50 million Moments of Truth in a year, each a chance to show customers that SAS was their best choice.
What Are Table-Stakes Touchpoints?
Table-stakes touchpoints are the critical interactions that disproportionately influence customer sentiment and brand perception.
For SAS, these touchpoints included:
- Making Reservations: The experience when a customer calls to book a flight.
- Check-In Process: The interaction at the ticket counter.
- Gate Experiences: How passengers are greeted and assisted at the gate.
- In-Flight Service: The care provided by flight attendants during the journey.
The Importance of Small Interactions
Beyond the big touchpoints, smaller interactions also play a vital role. Consider the SAS employee who smiles at a passenger as they walk by.
This simple gesture might seem minor, but it contributes significantly to the overall experience. Carlzon’s wisdom rings true: every interaction is a moment to form an impression.
Mapping Customer Touchpoints
In our customer service workshops, we often conduct a Moments of Truth exercise. Here’s what we do:
- Identify Major and Minor Touchpoints: We list every interaction a customer might have with the brand.
- Recognise Behind-the-Scenes Activities: Understand that many touchpoints are driven by processes and activities that occur away from the customer’s view.
- Create a Journey Map: By mapping out customer experiences, we highlight how all departments influence these touchpoints, even if they never interact directly with customers.
Imagine checking your luggage. You don’t see the many employees involved in ensuring your bag arrives at the destination. All you know is that it showed up when you did.
Timeless Strategies for Success
Carlzon’s approach isn’t just a historical lesson; it remains relevant today. As Laura Richard, a principal at Lev5, emphasises, managing table-stakes touchpoints is essential.
- Impact on Customer Perception: Recognise that these interactions shape how customers view your brand.
- Crafting Experiences: Every moment is an opportunity to create a memorable experience.
Why It Matters for Your Business
- Customer Retention: Happy customers are loyal customers. They’re more likely to return and recommend your brand.
- Positive Word-of-Mouth: Satisfied customers share their experiences, attracting new business.
- Competitive Advantage: Brands that excel at managing customer touchpoints stand out in crowded markets.
Actionable Steps to Enhance Touchpoints
To effectively manage table-stakes touchpoints, consider these strategies:
- Train Employees: Equip your team with the skills to create positive interactions.
- Collect Feedback: Regularly ask for customer feedback to identify areas for improvement.
- Monitor Interactions: Use data analytics to track and assess customer interactions.
- Adapt and Improve: Continuously refine your approach based on insights and feedback.
Conclusion: Every Moment Counts
The concept of table-stakes touchpoints is a powerful strategy for defining your business success.
By managing every customer interaction—big or small—you not only enhance customer experience but also build loyalty and drive growth.
As Carlzon wisely noted, it’s about crafting and managing each interaction one moment at a time. When done well, customers will be eager to return, saying, “I’ll be back!”
