CX as a Source of Competitive Advantage
By Luca Griseri
There is a notable absentee in the debate around how organisations can create and sustain competitive advantage : the topic is widely discussed ( as one would expect given its importance ) but it is often analysed in terms of marketing , branding , advertising or innovation ( NPD ) and very little in terms of how managing customers ’ experience and expectations can deliver 1 sustainable advantage .
CX WAS NOT INVITED TO THE PARTY Broadly speaking , and to grossly simplify what is a nuanced debate , there are two views on competitive advantage . Traditionally ( think Michael Porter or the Resource Based View approach ), competitive advantage was conceived of as long-lasting : in order to attain a long-lasting advantage , organisations would focus on their internal capabilities and resources ; they would chase cost-leadership ; innovate their products , or adopt a focused position .
A more recent approach considers the idea of seeking long-lasting advantage out of tune with today ’ s reality , where technological disruption provides opportunities for competitors and new entrants to attack the incumbents . In this context , instead of a long-lasting advantage , organisations should aim to acquire transient advantages ( note the plural ), which individually are short-lived but cumulatively still enable the overall organisation to prosper .
A PARTIAL PICTURE Irrespective of which of these two options one sides on ( personally , I think that there are merits in both ), what is striking is that CX is largely absent from both positions .
If the traditional view , for example , focused mostly on cost-strategy , positioning or NPD ( and viewed resources from an internal point of view and not in terms of how customers experience them ), the most recent debate the analysis focuses mostly on positioning , advertising and branding .
I think this is a serious miss on many levels because by concentrating the discussion on NPD , branding and advertising and neglecting CX , we achieve a partial view of how consumers engage with organisations – and therefore of how organisations should build competitive advantage .
Crucially , neglecting CX ignores what has become more and more apparent : in an era where consumers are exposed to so many messages , when brands do not fully control communication anymore and sharing experiences on social media is so easy , one of the last ways to differentiate is by meeting service and product expectations .
1 For an example , see the debate in the latest issue of the Harvard Business Review ( Jan- Feb 2017 ).