Future Customer Experience Differentiation Will Require New Operating Models

Paul Hagen

At some point after their companies find and fix the low-hanging fruit that creates problems for customers, customer experience leaders hit a wall. That wall is the outdated operational models upon which most companies were built. These models were conceived decades ago, based on the existing capabilities and constraints of the day, when the primary vehicle for value was tied up in the product/service itself. Within these operating models, firms have worked to optimize processes like marketing, sales, and distribution focused on getting to the transaction. Support has been a cost center so limited as much as possible. But this kind of operating model has critical problems. Here are a few that just scratch the surface:

  • Product lines obstruct customer needs that cross the company. Companies organized by product lines force customers to navigate different marketing messages, sales teams, billing systems, and websites and support organizations to get what they need, while internal staff waste effort and fail to create synergies that could deliver a bigger value proposition.
  • Channel strategies don’t account for information transparency. Like product lines, firms regularly treat channels as separate P&Ls. This artifact results in disjointed pricing, confusing return policies, botched hand-offs, and assorted other mishaps that undermine the customer experience. Moreover, it leaves little incentive for the fiefdoms to cooperate on behalf of the customer.
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