Over the past few months, following publication of my "Customer Insights Center of Excellence" report , there’s been a significant uptick in questions by insights and analytics teams who want to talk to us about CoEs. That’s a positive sign that firms are feeling the crunch to get more value from their insights functions. What’s the evidence for that conclusion? What can we learn from who’s asking about insights CoEs? And most importantly, what really matters in how you organize?
Before we dig in to answers, let’s set the bar on what “great” looks like in truly customer obsessed organizations: they use data for insights to improve customer experience that matters most to business outcomes. As my colleagues James McCormick, Brian Hopkins, and Ted Schadler write in their recent report, "The Insights-Driven Business," customer obsessed businesses act on insights in closed loops, at speed, and at scale in all parts of the firm. They embed analytics and testing directly into operating teams. And, firms who implement these approaches run faster and fleeter than you. The pressure is on from insights-driven organizations.
The questions below may sound familiar to you. I hear them from leaders of business insights teams of all kinds, from quant to qual, digital analytics to database marketing, customer analytics to voice of customer, market research to competitive intelligence, campaigns to customer service, behaviorial to predictive, B2C to B2B, CPG to pharma – you name it:
"I lead our [name the insights area[s] here] team. We’re struggling to get our business and operational areas to take action on insights – heck, sometimes we don’t even know what happens to the insights we provide. How do we change this?"
"Our insights teams work in silos that have built up over the years. The teams are good at what they do. But how do we pull together and combine our different flavors of insights to get more customer understanding? How should we organize?"
"I've been asked to re-organize [or, I'm new and I've taken over] our insights areas. I need to give a presentation to the C-team about what I'll propose. Any ideas on a framework I should use?"
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.
Communicate the importance of customer-centricity. Effective communications programs share updates with employees about initiatives to reinforce customer focus and highlight the importance of customer experience to the organization. As part of their customer-centric communication programs, companies should connect senior leaders with frontline employees and ensure that all corporate communications reinforce customer focus.
Companies like Avis Budget Group and E-Trade focus on changing the tone and content of all corporate communications.
General Motors (GM) assigned leaders the task of explaining the new customer focus to their respective departments. Involving senior leaders in this way reinforced to all employees that customer centricity was now an organizational imperative.
Chris and I recently published a report describing how to build risk and compliance principles into your company’s corporate culture. As we worked to finalize, edit, and publish the report, a flurry of new corporate scandals emerged, all related to this topic.
Here are just a few of them:
Wal-Mart executives accused of trying to hush up bribery cases in Mexico (article here).
A whistleblower accuses Infosys of engaging in a systematic practice of visa fraud (article here).
A former Goldman Sachs employee writes an op-ed for the New York Times blasting the company’s ethics (article here).
JP Morgan suffers a $2 billion trading loss due to “poorly monitored” trades (article here).