Why is great customer service so elusive?

Forrester updated its view into Customer Experience Management (CEM) earlier this year, with very interesting survey data. Retail continues to score highest among consumers and airlines stayed near the bottom. That’s why it came as no surprise when airlines moved quickly to be the first to announce that they would allow device use during takeoff and landing, just days after the FAA recently changed the regulations.

They have ground to make up and any opportunity to show great customer service is welcome.

Airlines Aren’t Alone in the Struggle

Airlines aren’t the only ones looking to improve customer experience management. While retailers lead Forrester’s CEM survey, customer experience scores vary greatly between retail brands. Several of the highest scores were cost-cutting retailers—not surprising during a downturn in the economy.

But not all retailers mentioned by Forrester were cost-cutters. For brands that want to compete on more than simply price, customer experience takes on a new urgency. At least one retail chain listed in the survey scored higher than cost-cutting brands, even though they don’t compete on price. For many, the answer is customer loyalty management.

Rather than racing to the pricing bottom, brands are increasingly taking advantage of strong loyalty programs, executive through loyalty platforms, to improve the customer experience and retention.

The Danger of Competing on Price Alone

Competing on price alone is a cutthroat business model with a constant threat of disruption. It only takes a lower price to take the customer elsewhere. Competing on great customer experience, on the other hand, is a virtuous model that offers customer advocacy, revenue lift, and forgiveness for the occasional slip up.

Great CEM is elusive for brands that lack a focus on customer service, don’t know their customers well, or have outdated, transaction-focused loyalty programs.

This piece first appeared on the Loyalty Lab blog and has been lightly edited.