Are you working as a CX pro in a B2B company? And do you find it challenging to make the case for your CX program? You are not alone.
In fact, many CX pros in B2B companies we spoke with struggled to get funding for their efforts --because they can't isolate the role of CX in driving financial success, they lack insight into how different clients’ experiences affect purchasing decisions, or they don't gather sufficient data about these experiences.
CX professionals managed to overcome these challenges by creating the preconditions for success. Following their lead, you should:
Rethink metrics and analytics to link CX to financials. CX pros need to look beyond the usual metrics like revenue or NPS to find the metrics that help link CX to business success.. For example food packaging company Tetra Pak found that a custom partnership index was a better predictor of sales and volume growth than other metrics they tested.
We all share this sentiment that we want to protect our resources — our planet for generations to come — so that our children and their children can live happily ever after. It’s that warm and fuzzy feeling we get when we see a little girl holding a flower in her hand. I realize that we all share this sentiment every time the press reacts with irate reports criticizing the extent of pollution in China — or when “Reduce, Reuse, Recycle” became part of pop culture with Jack Johnson’s song of the same name (sorry if you have that song playing in your head now). Protecting the environment is the right thing to do. But how many times have you used disposable dishes or cutlery when there were other options that were just less convenient? And why do you do that? It’s easy: Life gets in the way.
As a customer experience (CX) professional, you’ll have noticed the parallels by now. You regularly try to share insights from CX measurement or the voice of the customer (VoC) program with your colleagues across the organization to tell them what important customers think about their experiences with the company and what their pain points are. Using these insights is the right thing to do. But how many times have you met polite but superficial interest? And why is that? Life gets in the way. Your colleagues are busy, don’t know why to care, or have other priorities. It’s no wonder then that 72% of CX pros we asked in our recent survey on the state of CX maturity said that their organizations have only been somewhat or not effective at all in improving customer experience.
I looked at ways that CX pros have managed to rally their organizations around CX metrics and found 10 tactics that companies like Avaya, Elsevier, Hampton Inn & Suites, Sage Software North America, and Verizon have proven to work in the real world.
Over the weekend, I read the manuscript for Don Peppers' upcoming book, Customer Experience: What, How, and Why Now.
Because Don is a talented writer, and because I love customer experience, it wasn’t hard for me to start reading it. It was, however, hard to stop reading it. If you’re also into customer experience, you’ll no doubt have a similar reaction when it comes out.
What I like most about the book is that Peppers consistently grounds customer experience in business fundamentals. For example, he points out that the decision to focus on customer experience should never be binary: You don’t have to be customer-centric or product-centric, nor does spending to deliver a better CX mean wasting money. The reality is that focusing on customer experience can lead to new and better products and help create an even more profitable business — provided that you understand it.
Of course, learning to understand the practical aspects of customer experience can be hard work — much like attending a particularly tough business class. But that’s not the case here. Peppers makes the nuts and bolts of customer experience engaging and even visceral. To see what I mean, check out two of my favorite quotes from the book:
"If you think about it, a customer is really just a bundle of future cash flows, with a memory. And these future cash flows will increase or decrease based on how the customer remembers being treated, today."
“Customers don’t necessarily stay because they’re satisfied, but they often leave because they’re not.”
Expectation Maps Are A Smart Way To Visualize Customer Journey Emotion
Talking to clients, it’s interesting to see and hear how the topic of “customer needs” still comes up as frequently as the sun comes out in Singapore. In a day and age when customer “needs” such as food, clothing, and human interaction are largely met, it makes sense for CX professionals to shift focus toward dynamically changing and ever-evolving expectations of what a quality experience should feel like.
When making a purchase online, for example, the “need” is for the item to get to the address provided in the time stated — that’s a given. It gets emotional when there’s a disconnect between the picture of the product purchased and the actual item received. Wildly exceeding or failing to meet expectations elicits emotional reactions that shape customer perceptions of the quality of a given experience.
Culture and language also have a very powerful influence on customer expectations, and companies need to be mindful of this when going after customers outside of their home markets and localize those experiences appropriately.
My latest report, part two in a three-part series on tools CX pros can use to customize customer experiences in markets they operate in overseas, explores expectation mapping as a tool to capture diverse emotional elements to augment your existing customer journey work.
It’s been a rough nine months for federal cybersecurity. The huge Office of Personnel Management (OPM) hack is just the latest in a series of incidents that make people skeptical of Washington’s ability to protect their personal information. Since last fall, we’ve witnessed hacks of the:
OPM. Last week’s cybersecurity failure at OPM wasn’t its first run-in with hackers. In March 2014, hackers broke into OPM networks in an attempt to exfiltrate information about security clearances. Federal authorities claimed to have blocked the hackers from the network, but last week’s OPM cybersecurity failure should make us skeptical.
Government Publication Office and Government Accountability Office. These two offices got hacked at the same time as OPM last year.
US Postal Service. On November 10, 2014, the USPS confirmed an intrusion into its network that resulted in the compromise of the data of more than 800,000 employees.
State Department. On November 17, 2014, the State Department said that its unclassified email systems had been compromised a month earlier. Three months after the initial intrusion, the State Department was still unable to eradicate the effects of the attack.
National Oceanic and Atmospheric Administration. On November 12, 2014, NOAA confirmed that hackers had breached four of its websites.
President of the United States. The same attackers that breached the State Department in November 2014 compromised the White House's unclassified email system about a month later and gained access to President Obama’s email.
A few weeks ago, I advised federal agencies to build better digital customer experiences. I had no idea how polarizing the post would be, so I’d like to return to the topic of digital customer experience (CX) again this week.
Even the US Digital Service (USDS) thinks federal agencies need better digital CX. Last year, the USDS published a US Digital Services Playbook, a series of 13 plays to help federal CIOs create better digital customer experiences. (The playbook would work equally for agencies’ digital services teams, if they ever get funded.)
Notably, the Playbook doesn’t open with CIO staples like cloud services or automated testing or procurement. It starts with four CX plays that remind federal CIOs to begin every project with an outside-in customer-centric perspective.
These four CX plays are good advice. Federal CIOs who follow them will produce measurably better CX. That's because these guidelines, which are drawn from basic but proven best practices, correctly advise CIOs to:
"Understand what people need." Play No. 1 challenges CIOs to think from the outside in by putting "the needs of people" before the "constraints of government structures or silos" when designing new experiences. This guidance provides federal CIOs with the mandate they need to push back against rigid organizations and complex regulations that paralyze CX improvement efforts.
At Forrester’s Forum For Technology Leaders in Lisbon (June 2-3), Marcello V. Ronco, Senior Vice President and Head of Core Banking Production Line of UniCredit Business Integrated Solutions (UBIS), will be speaking about the bank's BT transformation journey and, in particular, its mobile banking initiative. Marcello is co-leading with Marketing Directors within the organization the restructuring of UniCredit Retail in Italy, Germany and Austria, to realize the company's ambition to become a truly digital omni-channel bank. In his session, Marcello will explain how to change a traditional IT department so that it is set up to support a modern multichannel bank, and why IT plays a strategic role to ensure the right level of customer service through mobile banking.
As I prepared for my role as Forum Chair, I spoke to Marcello about his views on the age of the customer and the impact it has on financial services organizations such as UniCredit. Here is what Marcello shared with me, and I hope you will enjoy his answers as much as I did.
Q: How is the age of the customer impacting your industry (financial services) and the solutions provided by UniCredit Business Integrated Solutions?
Mark McCormick, newly in the position of head of user experience for wholesale Internet services at Wells Fargo, has led customer experience teams for 20 years, the past 12 of which have been at Wells Fargo. He specializes in managing large research, design, and content strategy teams and driving cultural values and practices around customer centricity, innovation, and, lately, simplicity. We sat down to talk more about simplicity leading up to Mark’s keynote at CXNYC 2015.
Q: You’ll be speaking about ethnographic research at the CXNYC 2015 Forum. Could you give us some background on the role of research at Wells Fargo, particularly as it relates to design?
A: Ethnography is an enabler to design and decision-making. Design and research have always gone hand in glove at Wells Fargo, usually reporting to the same manager and working in tandem on projects. But when I talk about research, I’m referring to a few different kinds of research. In the case of usability, there needs to be a bit of a wall between the designers and research in order to maintain the objectivity that’s needed. With ethnography on the other hand, ideally you would have designers, executives, and product teams all in the field, side by side with researchers. With that kind of research, and with the rich qualitative data that comes out of it, it is extremely fruitful if you get designers and researchers parsing the data together. Then everyone has a stake in it, and if they have a stake in the data, they end up using it.
By now we all know that federal customer experience (CX) is disastrously weak and that improving it will boost both agency operations and the health of the political system.
We’ve also seen some pockets of hope popping up, as I predicted a few months ago. For instance: The Department of Education’s new portal is complete, the Department of Veterans Affairs My HealtheVet site now offers online tracking for mail-order prescriptions, and BusinessUSA.gov combines thousands of pieces of information from several federal agencies into a single site for entrepreneurs and business owners. Other improvements are still in the works, like 18F's upgrade of the Department of the Treasury's My Retirement Account website and the Office of Personnel Management Innovation Lab's redesign of USAJobs.gov.
These isolated projects are good, but not good enough. It’s time for federal agencies to get beyond one-off tech tasks and the find-and-fix mentality to truly institutionalize CX improvement throughout their organizations. And that means treating CX not as a sideshow, but as a real business discipline. To do this, agencies must systematically perform the practices associated with all six CX disciplines — strategy, customer understanding, design, measurement, governance, and culture. Right now, federal agencies are failing in all of these areas.