It may come as a surprise to some to hear that technology teams play an important role in the implementation of an effective customer experience strategy, but that's the conclusion from our latest research.
“Customer experience (CX) maturity” was the topic of Forrester’s recent chief customer officer (CCO) roundtable meeting. Based on a recent report by Megan Burns called “Customer Experience Maturity Defined,” the customer experience leaders present took Forrester’s self-test of key CX practices, discussed their own company’s strengths and weaknesses, and shared successes and challenges they faced at their companies in interactive discussions throughout the day.
Here are some of the highlights from the discussion.
Governance and project investment. A significant portion of the discussion revolved around customer experience governance and getting funds for projects. There was clear agreement in the room on needing CX leaders at the top levels of management. For instance, the CCOs were saying:
“Customer experience loses at the corporate budgeting level. You need to be there or have an exec like the CFO fighting for you there.”
“Get on the decision-making body for investments and make sure you at least have veto power over projects.”
“When I’m making the business case for CX-related projects and pushing it up to the C-level, I always build ranges into the outcomes (e.g., reduce churn by 0.5% [worst case], 1% [middle case], and 2% [best case]; increase word of mouth by 2% [worst case], 5% [middle case], 10% [best case]). I get less argument about even the low number . . . people are overly optimistic.”
Like it or not, government services face many of the same pressures that companies face. Companies like Amazon.com, USAA, Disney, and Zappos.com raise customer expectations when they deliver stellar service. As they raise the bar, other companies and government agencies risk getting fired when they fail to deliver the value that customers expect, make customers jump through hoops to access it, or begrudgingly deliver it through unengaged employees. Customers and citizens simply choose to take their money elsewhere.
It’s through this lens that I’ve watched the recent battles over state budgets and public employees along with their unions. When citizens don’t perceive they're getting a good value for the buck, they take their money elsewhere, even if that is through the ballot box — no wonder, when the citizen experience is so often sub-par.
Here are a few examples I’ve witnessed just in the past couple weeks: A group of on-duty cops spend an hour drinking coffee in Starbucks when people don’t feel comfortable walking around the streets a few blocks away; DMV workers look bored and move at the pace of sloths while I spend an hour waiting in line, even though they’re likely making way more money than the waitress at a local restaurant who’s super-friendly and efficient; a public transportation worker holds a sign at a street car stop urging people to smile, even when the lines often experience large delays; a gruff postal worker begrudgingly gets off his stool to get my package and then throws it on the counter.
Over the past five years, Forrester has observed an increase in the number of companies that have a single executive leading customer experience efforts across a business unit or an entire company. Whether firms call these individuals a chief customer officer (CCO) or give them some other label, these leaders sit at high levels of power at companies as diverse as Allstate, Dunkin’ Brands, Oracle, and USAA.
We define the CCO as: “A top executive with the mandate and power to design, orchestrate, and improve customer experiences across every customer interaction.”
Who are these new customer experience executives? Why do companies appoint them? And does your company need one? To answer these questions for a newly released report called “The Rise of the Chief Customer Officer,” we gathered data on 155 CCOs, surveyed a panel of customer experience decision-makers from large North American firms, and conducted in-depth interviews with CCOs from both B2C and B2B companies. Here are a few of the nuggets we found:
Title. Forty-four percent have the title of “chief customer officer,” 23% are called “chief client officer,” and 8% go by “chief experience officer.” The many, highly varied titles of the remaining 26% highlight the extreme difficulty of trying to spot CCO-level people by title alone, such as USAA’s “executive vice president, member experience” and Sirva’s “customer experience, operational excellence, and chief innovation officer.”