The importance of Customer Experience (revisited) – Do you have a JDCE?
- matthew0268
- 3 days ago
- 7 min read
I have written previously about the importance of customer experience and since I also wrote that not enough time and attention on the voice and experience of the customer is discussed at company board meetings, I thought I would write about it again.
In part it was triggered by a podcast I have been listening to “Invest like the best” which I would definitely recommend. This week their guest was Neil Mehta, a very successful VC investor and Managing Partner at US based Greenoaks Capital. He has coined this great acronym that he looks for before making an investment – JDCE which stands for Jaw Dropping Customer Experience.
For Mehta, this isn’t just about making customers happy. It’s about creating moments of surprise, delight, and emotional connection that forge lasting loyalty. In his view, this kind of experience isn’t just good business—it's one of the most powerful competitive moats a company can build.
Apple and its seam less set up experience and focus on packaging is the obvious product example and on the service side, Ritz-Carlton empowers employees to spend up to $2,000 to improve a guest’s stay with no manager approval needed and previously I wrote about Union Square Hospitality and Amazon. But the list is not endless and most companies are not focusing on their JDCE.
Competitors may copy features or offer lower prices, but they can’t easily replicate the emotional loyalty that comes from consistently exceeding expectations with a JDCE.
Mehta’s point is it is the brands that make their customers feel amazing win more than market share, they win trust and trust is sticky which in turn reduces churn, increases customer lifetime value, and fuels the best form of marketing ever – word of mouth growth.
Whilst Apple and Ritz Carlton are large companies, I don’t think a JDCE can only be achieved with a vast budget. It often comes from relentless operational execution and a culture obsessed with customer success by focusing on every single touch point with the customer.
One of my favourite quotes is by the American Poet Maya Angelou, “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
If we can get this right and develop our own respective JDCE we will win!
As always, I would value your thoughts and comments below.
Neil Mehta, a seasoned investor and managing partner at Greenoaks Capital, has frequently emphasized that the most successful businesses in the modern economy are those that create jaw-dropping customer experiences. According to Mehta, this concept goes far beyond merely satisfying customer needs—it’s about delivering moments of surprise, delight, and deep emotional connection that make customers feel an unshakable loyalty to a brand. In his view, customer experience is not just an operational consideration; it's a strategic moat—a defensible edge that protects a company from competition and enables sustained long-term growth.
A jaw-dropping customer experience is fundamentally about creating an offering so compelling that customers can’t help but return, promote it to others, and feel disappointed when interacting with alternatives. This kind of experience blends excellence in product design, seamless user interaction, exceptional support, and a deep understanding of what the customer values most. Mehta points out that in a world where switching costs are increasingly low and information is easily accessible, companies must go far beyond functional competence. To win, they must emotionally resonate.
In product businesses, Apple is a classic example that Mehta often praises. The company's attention to detail in product packaging, store layout, customer service at the Genius Bar, and the intuitive user interface of its devices collectively create a sense of delight. The iPhone isn’t just a phone—it’s a lifestyle device. Its ecosystem is carefully designed to keep users locked in not because they have to stay, but because they want to. Each touchpoint is intentional, creating an almost invisible barrier to exit. Customers feel taken care of, understood, and elevated by the experience. That emotional bond transforms product users into brand evangelists. This kind of loyalty significantly increases the customer lifetime value (CLTV), lowers churn, and provides pricing power—all critical elements of shareholder value.
In the service industry, consider the case of Ritz-Carlton, another brand Mehta respects for its service ethos. At Ritz-Carlton, staff are empowered to spend up to $2,000 per guest to solve problems or enhance experiences—without seeking management approval. This autonomy results in memorable, often story-worthy service moments. Guests leave not just satisfied but amazed. For instance, if a guest forgets a charger, the staff might overnight a replacement with a handwritten note. These actions are not mechanical, but personalized and proactive. They foster a deep sense of appreciation and loyalty that is hard to replicate. More importantly, they create stories—and in today’s economy, stories drive word-of-mouth, which drives growth.
Another example from digital services is Amazon, which has become the default online retailer for millions. Mehta has observed how Amazon’s obsession with customer experience—particularly in speed, reliability, and convenience—has made it almost indispensable. Features like one-click purchasing, same-day delivery, and hassle-free returns don’t just meet expectations—they exceed them. These experiences are powered by massive infrastructure and logistical coordination, but what the customer feels is pure simplicity and satisfaction. That gap between operational complexity and effortless user experience is where the jaw-dropping magic lives.
Mehta argues that companies that master this kind of experience create a form of economic gravity. Competitors may copy their features or offer lower prices, but they can’t easily replicate the emotional loyalty that comes from consistently exceeding expectations. This loyalty becomes a powerful moat—a term popularized by Warren Buffett to describe durable competitive advantages. For Mehta, the moat created by customer love is one of the strongest, because it's anchored in human behavior and psychology. People don’t just prefer the product—they trust it, rely on it, and even advocate for it.
This has direct implications for shareholder value. When customers are loyal, revenues become more predictable. When customers promote the brand, acquisition costs decrease. When customers are less price-sensitive, margins increase. All of these contribute to stronger cash flows and, ultimately, higher valuation multiples. Moreover, companies with strong customer experiences often attract better talent, enjoy stronger cultures, and face fewer reputational risks—further amplifying their long-term value.
A particularly illuminating insight from Mehta is that jaw-dropping customer experience is often not the result of flashy design or extravagant spending. It’s more often about operational excellence and consistency. It’s about making it easy for the customer to succeed, and removing friction at every turn. For example, he cites how software companies like Slack and Notion have grown rapidly not just because of marketing, but because their products are inherently delightful to use. They solve real problems elegantly, and they do so in a way that feels human, not corporate.
In many cases, companies that deliver such experiences take an almost maniacal focus on the user. They invest in understanding their needs, desires, and pain points better than anyone else. They continuously iterate to improve the experience. And they build internal cultures that celebrate customer success as the ultimate metric. Mehta sees this customer-centricity as both a leadership philosophy and a strategic playbook.
The importance of this approach is magnified in competitive markets, where commoditization is always a threat. Mehta argues that in such environments, the experience becomes the differentiator. When products are similar and prices converge, the way a company makes its customers feel becomes the only way to stand out. This emotional edge is durable and defensible precisely because it’s hard to fake and even harder to scale without true cultural alignment.
One of Mehta’s most compelling observations is that customer experience is not a "nice to have"—it’s a driver of compounding returns. Each great experience leads to more loyalty, which leads to more repeat business, which leads to more referrals, which fuels more growth. Over time, this flywheel becomes unstoppable. Businesses that embrace this dynamic generate not just momentary value, but exponential outcomes.
In conclusion, Neil Mehta’s framework for creating a jaw-dropping customer experience is not just about delight—it's about differentiation, defensibility, and long-term value creation. Whether it’s in hardware, hospitality, or SaaS, the brands that win are those that make their customers feel something unforgettable. These experiences create moats that technology alone cannot breach and foster loyalty that price wars cannot erode. In doing so, they unlock the greatest prize of all in business: sustainable, compounding shareholder value.
Jeff Bezos once said “Start with the customer and work backward. That is the best way to create shareholder value.”
I think without continually focusing on your customer experience whether a product or service business you simply will not have a business long term.
However, it is often voiced as a criticism that company boards and executive leaders do not focus enough time and attention on the voice and experience of the customer.
Two people I admire for their customer focused philosophies are Danny Meyer and Tony Hseih, the founders and CEO of Union Square Hospitality, a restaurant group and Zappos an online shoe company (now part of Amazon) respectively.
Danny Meyer, developed a concept he called "Enlightened Hospitality." With this, he differentiated between “service”, the technical delivery of the product and “hospitality”, how people feel during the experience. He believed that every human wears an invisible sign saying “make me important” and with that in mind he focused on making his customers feel seen, valued and appreciated.
Zappos became famous for its exceptional customer service, which went beyond expectations. Hsieh believed that creating "WOW" moments for customers, such as free upgrades or going the extra mile to solve problems, built loyalty and word-of-mouth marketing. To underpin this they had a KPI of measuring how long it took to satisfy every customer call with no limit (one famously lasted 10+ hours!) emphasising customer satisfaction over efficiency metrics.
Meyer demonstrated a similar philosophy, whether it's offering complimentary dishes for a special occasion or resolving a problem with grace, Meyer believed in exceeding expectations to create what he called "RAVES" moments that customers talk about and remember.
I believe this customer focused philosophy can be summed up by one of my favourite quotes by the American Poet Maya Angelou, “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
A philosophy that is so important for managing customers and team member experience.
Whilst the above examples of leaders successfully ran restaurants and an online shoe company, I do think focusing on human psychology and creating a positive emotional experience can be applied to all customer experiences whether a product or service, B2B or B2C.
Monitoring customer-related metrics is also essential to understanding how the business is performing in terms of customer satisfaction, loyalty, and overall experience.
I think the best metrics provide a mix of qualitative and quantitative insights, helping boards evaluate the effectiveness of strategies and make informed decisions.
It would be interesting to ask yourself – how is your customer experience? How many customer focused KPI’s are you tracking and what are we doing to ensure your customers have a “WOW” or “RAVE” moment.
As always, I would value your thoughts and comments below.
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