A few small, smart, precisely targeted enhancements to your customer experience could help you dominate your market. Fabian Wong, Chief Creative Officer and Head of Experience & Design at Capita, argues the power of the 3% rule.

Globally, retail is moving at a pace that is, in my view, astonishing. We are in a marketplace where changes come very rapidly and are highly disruptive.

When I observe the UK high street, and the e-commerce and m-commerce around it, you can see how retailers are striving to improve their digital and customer experiences.

Many players in the market try to achieve that by doing something radical in order to be totally different from their competitors.

However, I’ve developed my own theory and see the market through the lens of a simple 3% rule. As long as you’re better than your competitors’ customer experience by 3% at any key touch point, that should be enough to give you a more dominant market share.

If you think about using Amazon, or other such services in the market, do you really see that service as being massively different or is it actually a cumulation of lots of plus-3%s across the whole customer journey?

My gut feeling is that the top players are in fact spending no more than 3% of their effort to create in areas that really matter within the entire user journey or within their orchestration effort.

They look at where that 3% is going to make a serious difference and then they rely on a ripple effect to spread that transformation. If you throw enough 3%s into the pond, eventually the ripples combine and reinforce the effect, becoming highly impactful. When those ripples rebound off industry edges and fold back on themselves, that creates market turbulence which redefines and amplifies where the new normal lies.

In a very agile market place, which is constantly changing, I think that’s enough to keep you in the top spots.

“My gut feeling is that the top players are in fact spending no more than 3% of their effort to create differences in areas that really matter within the entire user journey or within their orchestration effort.” Fabian Wong, Chief Creative Officer and Head of Experience & Design at Capita

Choose your 3%s wisely

But you need to be very smart about where and how you apply that 3%.

For example, in the UK, when you order anything online, you’re usually told the day on which it will be delivered. But in locations with advanced logistics, such as Tokyo, that delivery prediction will be by the hour. Would you like your parcel between 8.30 and 9.30 in the morning, or after work between 10pm and 11pm?

Moving your business from the promise of a day delivery to an hour delivery would put you in a completely different competitive space, well ahead of your competition. But the logistical effort and expense to do that would be massive, a lot more than a plus-3%.

So you need to understand your own sectors and subsectors and the ‘culture’ of your market to determine the 3%s that are achievable, and which will deliver the greatest impact.

This is where Capita can play a practical role in helping retailers find and enhance the 3% of their customer experience that will create the greatest ripple effect in the market place. Our experience provides us with a very a strong layer of understanding of what really counts so we really can make a difference.

Thinking about your organisation?