Frustrated with the lack of progress in implementing successful CX change initiatives? Join the crowd…
According to a Forrester June 2023 report, CX quality among brands in the US declined for an unprecedented second year in a row. Despite more than 80% of business leaders indicating that improving CX is a high priority, just 6% of brands saw a significant increase in 2023, compared to 10% the year prior.
With continued investment in research, unstructured data analytics, AI, CX measurement platforms, etc. why is this the case? Why are companies continuing to invest in CX strategies and tactics when the results, from a customer perspective, simply are not there?
We believe there are three points here that should be considered:
Executives talk a good game but oftentimes lack the managerial courage to break down silos and drive the necessary change due to risk avoidance and/or short-term revenue and profit pressure.
Verde Group Perspective: CX practitioners are not passing the boardroom test because many CX measurement programs lack the necessary financial grounding to create momentum and ultimately drive change – we see this time and time again – without a financially-based CX strategy, leadership may find your CX program interesting but not compelling enough to take what is likely perceived to be a risk in shaking up organizational functions/operating practices.
A good CX relies on a good EX. It is inevitable that problems will occur in the customer experience. But great CX organizations encourage customers to tell them about their problems and then do an excellent job resolving those issues. Empowering employees to “make things right” not only addresses the customer’s issues but also drives employee engagement and a feeling of accomplishment as they serve the brand’s needs.
Verde Group Perspective: When customers have their issues resolved to their complete satisfaction, there is a complete rebuilding of loyalty. Verde Group has seen a 30%-50% increase in customer loyalty when employees have the tools, resources, and ability to address the customer’s issues quickly and completely.
Don’t chase the squeaky wheels. Too often, organizations focus on addressing high-frequency CX friction points without understanding if they are material in driving business performance. This approach, while reducing potential noise in the marketplace, can create the illusion of progress but not positive financial outcomes.
Verde Group Perspective: Over 50% of the time, the most frequent CX friction points are not the most damaging. And in a vast majority of instances, CX friction points to the cause of the greatest economic impact that’s not on a company’s radar screen – the silent killers of your business. Separating noise from signals is critical in an organization’s pursuit of CX excellence and more importantly, improved market share.
If you are frustrated by your current CX strategy and want to start a conversation about how to improve upon your CX strategy, we’d love to hear from you at the Verde Group.
(Article originally published in July 2023 Verde Edition Newsletter.)