Forrester is helping its clients better understand the Age of the Customer, a tectonic business shift characterized by technology innovations that have empowered customers in new and disruptive ways. With computing power we could only have dreamed of just a generation ago now in the hands of well over a billion individuals, businesses are scrambling to keep up with relentlessly growing customer expectations and demands.
A recent Forrester report, called ‘The CIO's Blueprint For Strategy In The Age Of The Customer’, provides CIOs with a strategy to help their companies thrive in these new times. In addition to transforming customer experience with a measurable approach, the authors argue that customer obsessed organizations must:
Last week I blogged a video recap of day one of Forrester’s Customer Experience Forum East, 2014. I had originally planned that post to cover both days of the forum, which has grown to become Forrester’s largest event in our 30+ year history. But at some point I realized that there was just too much material to cram into a single post.
Which led, inevitably, to this post with my video recap of day two.
If you were also at CX East, here’s a reminder of what happened on that second day. And if you weren’t there, here’s a preview of the types of things you’ll see at our Customer Experience West in Anaheim on 11/6 – 11/7 and our Customer Experience Forum EMEA in London on 11/17 – 11/18.
Rick Parrish, Senior Analyst, Forrester
Rick Parrish kicked off the morning with a major update to our research on the customer experience ecosystem, which we define as: The web of relations among all aspects of a company — including its customers, employees, partners, and operating environment — that determine the quality of the customer experience.
That web of relationships often leads to unintended consequences for both frontline employees and customers. Why? Because back office players take well-intentioned but misguided actions – like what happened with the US federal government in this example from Rick.
In the age of the customer, companies must transform their cultures from product-centric to customer-centric. But that is easier said than done. Customer centricity requires all employees to understand who their customers are, how customers perceive their interactions with the company, and the roles employees play in delivering the overall experience. Customer experience (CX) rooms — immersive, interactive spaces that help employees better understand customers — have emerged as a powerful new tool for bringing customers and their journeys to life for workforces. Done well, CX rooms inspire empathy and understanding among employees and help build customer-centric cultures.
Firms create CX rooms to help employees understand the current customer experience their company delivers and to better understand the intended experience the company wants to deliver. The CX room that Ingrid Lindberg, chief customer experience officer at Prime Therapeutics, created at a previous employer demonstrated how complicated it was for customers to know which of the company's many phone numbers they should call or which of the firm's many websites they should visit.
My recent report, “Driving Toward Communications Sourcing Excellence,” looks behind the scenes to find out why Formula One (F1) sourcing professionals enjoy such a great customer experience from their network providers. It’s a two-way street: Providers ensure that the F1 team’s network is reliable, always available, and delivers peak performance when needed, and F1 sourcing pros provide the guidance, insight, and support to make sure providers know what teams need. This is as much a concern for CIOs as it is for sourcing pros in their quest to win, serve, and retain customers.
Matt Cadieux, the CIO of Infiniti Red Bull Racing, said, “AT&T has a dedicated F1 account team that I meet for regular account reviews to discuss our requirements and plans. In the rare event of a problem, we also have excellent relationships with AT&T’s top executives. AT&T has consistently delivered projects when required; for example, in 2014 it provisioned new access networks in England and France and at racetracks around the world. These circuits have been fully operational — we show up and they just work.”
What It Means
My colleague Tracy Stokes believes that a consistent customer experience builds a trusted brand, and I couldn’t agree more. It also leads to:
Anyone who's been following this blog knows that I've invested a lot of time recently laying out the case for why CIOs should take more ownership over employee engagement and workforce experience. With the foundational argument in place, it's now time to turn to the critical question: How should an IT department act? This can be a paralyzing question because owning the workforce experience means IT leaders must step outside of traditional technology provisioning and maintenance roles. That's why the path forward for IT leaders is to implement a series of changes in how they view themselves, employees, and the technology landscape:
Pivot benchmarks to account for engagement's link with IT satisfaction. Traditional IT benchmarks concern the performance of the infrastructure and employees' satisfaction with the service they receive. These are indeed important measures, but they do not give a complete view of how technology helps engage employees. We recently published our benchmarks for workforce experience that lay out what CIOs should be evaluating in addition to their customary metrics. These include employee engagement measures, employee technology attitudes, where employees learn about technology and how IT plans align with employee expectations. Evaluating both IT and the workforce in such a fashion requires the buy-in of executives, particularly the head of HR who traditionally owns employee engagement and satisfaction surveys.
It disappoints me when customer experience (CX) professionals at business-to-business (B2B) companies won’t even consider CX practices from business-to-consumer (B2C) companies.
Sure, B2B firms can learn a lot from other B2B firms: Cisco has an amazing voice of the customer program, Boeing does great work conducting field studies of its customers, and Adobe has a notable CX governance practice. But unless B2B customer experience practitioners want to run the CX race with one foot in a bucket, they should also learn strategy from Holiday Inn and Burberry, customer understanding from Vanguard and Virgin Mobile Australia, and design practices from Fidelity and the Spanish bank BBVA — the list of relevant B2C case studies goes on and on.
There are two reasons why B2B companies should take this advice to heart. First, no industry has anything close to a monopoly on best practices. So unless companies cast a wide net, they’re cutting themselves off from lessons that could give them an edge over their navel-gazing competitors. Secondly, every customer that B2B companies serve is not only a businessperson but also a consumer, one who has his or her expectations set by daily interactions with Amazon, Apple, Starbucks, and Zappos. And those B2B customers no longer lower their expectations when they go to work — especially because work now gets interspersed with their personal lives.
One of the most enjoyable tasks as a Forrester analyst is reviewing all of the Groundswell awards submissions. And we know many of you also look forward to seeing the innovative approaches that other B2B companies use to listen to and engage with customers. This year, we received 45 entries and we judged submissions across seven categories: Listening, Talking, Energizing, Spreading, Supporting, Embracing, and Mobile.
Earlier in November, we announced the winners and then presented a Webinar to Forrester clients where we discussed the awards process, criteria, highlights, and named all the winners. And we described why they won their awards as well as featuring many other entries that we thought warranted an honorable mention.
Download this podcast to hear more from Kim Celestre, Zachary Reiss-Davis, and myself about the Groundswell B2B Awards (it runs for around 45 minutes):
First, our final lineup of external speakers is confirmed. All of our main-stage speakers are from companies featured in our new book, Outside In — some of them are even the subjects of case studies in the book.
Many of you have asked us to feature more business-to-business content in our events, so in response, we have both Randy Pond, EVP of operations, processes, and systems at Cisco Systems, and John Taschek, VP Mof market strategy at salesforce.com. Both companies are in the book, and Randy is the executive sponsor of the program that won one of our 2012 Voice Of The Customer Awards.
In addition to Randy and John, we have Dr. Jim Merlino, the chief experience officer for Cleveland Clinic, a world-famous, $6 billion healthcare provider. The work he is doing is as applicable to organizations outside of healthcare as it is relevant to all of us who have ever been (or will ever be) patients.
We’re also excited about our main-stage panel on building a customer-centric culture with Nancy Fratzke of US Cellular and Kelly Harper of BMO Financial Group. Transforming a culture is one of the hardest things any of us will do, and both of these panelists have successfully done it.
As a prequel to some of what we'll hear from Laurie at our event, we sent her questions about the FedEx customer experience and why she sees it as a competitive advantage. Her answers appear below.
Q: How would you describe the experience that you want FedEx customers to have?
A: Relationships oftentimes start with a simple handshake. For example, when you meet someone for the first time and extend your hand in greeting, you’re offering to build a relationship. In the same way, we want to offer a hand to our customers to establish a personal and meaningful connection. After all, FedEx is more than just delivering packages. We’re an innovative company that thrives on delivering solutions and programs that meet our customers’ needs and expectations.
Since publishing our Customer Experience Index, 2012 last week, we've gotten a flood of questions about the research, methodology, and results. I'm putting the finishing touches on a full Forrester report that answers the ten most common questions but thought I'd give everyone a sneak preview with a blog post summarizing a few of the answers.
1. Who are the people rating the brands in Forrester's Customer Experience Index?
To produce the CXi each year, Forrester conducts an online survey of US individuals ages 18 to 88. This year, there were 7,638 such folks who answered the survey during October 2011. We weighted the data by age, gender, income, broadband adoption, and region to demographically represent the adult US online population. The sample was drawn from members of MarketTools' online panel, and respondents were motivated by receiving points that can be redeemed for a reward.
2. Which touchpoints are consumers rating when they answer the CXi questions?
The short answer to this question is "any touchpoints they used to interact with the brand." We don't direct consumers to think about any specific touchpoints as they rate their interactions. Instead, we want them to consider all of their interactions with that brand over the past 90 days, regardless of how they happened.