Featured Product
This Week in Quality Digest Live
Quality Insider Features
Gleb Tsipursky
Strategies to navigate our increasingly disrupted environment
Doug Folsom
Unpatched vulnerabilities will become increasingly susceptible to cyberattacks
Donald J. Wheeler
What they forgot to tell you in your statistics class
Lee Seok Hwai
Give employees permission to generate ideas, nudge them in the right direction, then get out of the way
Harry Hertz
Or are your employees more important?

More Features

Quality Insider News
New data suggest most of the growth in the wage gap since 1980 comes from automation displacing less-educated workers
Compact IPLEX G Lite-W videoscope packs powerful features into a small body
Features customer-driven updates to training management, empowers staff to drive quality improvement
Review will assess how Baldrige Performance Excellence Program can best advance U.S. competitiveness
Weighing supply and customer satisfaction
High-performance polymers for use in high-temperature range developed for 2PP 3D printing

More News

Annette Franz

Quality Insider

‘Sucking Less’ Is Not a Customer Experience Strategy

In this day and age, is there any viable excuse for not focusing on the customer experience?

Published: Monday, November 25, 2013 - 17:45

I was part of a panel that participated in a Google Hangout on Air hosted by Fonolo a couple weeks ago. During the Hangout, the panel discussed a few stats on—and trends affecting—customer experience.

My lead topic was about this statistic from recent Forrester research: “93 percent of respondents say that the customer experience is among their companies’ strategy priorities; however, reality shows that only 37 percent of companies have a dedicated budget for initiatives focused on improving the customer experience.”

The question posed to me was: Why aren’t organizations seeing the value of the customer experience? Honestly, that’s an entire Hangout on its own, but we boiled it down to a few minutes of discussion.

Are organizations seeing the value of delivering a great customer experience? Clearly they pay lip service, but we know that actions speak louder than words. Do they really get it? No. There’s no real commitment of time, resources, and budgets to initiatives that improve the customer experience. Obviously those companies have not seen the chart from Watermark Consulting that shows how customer experience leaders have outperformed the market over the last several years.

I spend a lot of time talking to prospects and clients about how to sell the value of customer experience to company leaders. It’s so disheartening because it seems so obvious. Instead, what I see and hear are these:
• Companies still don’t make the connection between a great employee experience and a great customer experience. This is the foundation.
• They focus on sales and acquisition rather than on retention. It becomes a never-ending vicious cycle if you can’t keep your customers.
• They focus on metrics and metrics alone. Yes, what gets measured gets done. But if you’re measuring the wrong thing, you’re driving the wrong behavior. And if you’re only listening to the voice of the customer for the sake of measuring—and not for acting—then you’re doing it all wrong.
• “Well, we have a customer service department.” It’s not the same thing!

I think there are three types of leaders that fill up the “don’t get it” bucket. (There are probably more; feel free to add them in a comment below.)
• Those who just simply don’t understand that great customer experiences drive business success.
• Those who just simply don’t care (to understand) that great customer experiences drive business success.
• And those who think they don’t need to focus on the experience because “business is good.”

 

The first two are pretty straightforward. That doesn’t make them OK, but I’ll bypass those and focus on the third type of leader.

A couple of weeks ago, a friend was telling me about issues happening at his company. The company is a mess, literally: bad leadership, no transparency, no communication, no onboarding or training, lots of turnover, and so much more. Yet the business is flourishing. How is that possible? They have long-term contracts, so they’ve got a captive audience. They don’t deliver on all of the requirements within the contract unless the customer complains and then the requirement is fulfilled; the box is checked and the customer is “happy” again. This is no way to do business. That’s an experience alright—not a very good one. And yet, they are doing well, in spite of themselves. Why? Because, in their industry, they suck the least.

Sucking least is not a strategy. It’s not even an excuse for not focusing on the customer. It’s lame, and it’s lazy. If they think the business is doing “well” now, imagine what it could be if they pulled themselves together, did right by their employees and their customers, and became the best in the industry, not just the one that sucked the least. Imagine what their revenues would look like then. Imagine what that would force the rest of the industry to do. There are no competitive pressures to do better by/for the customer right now.

So here’s a thought... and I’m going to borrow from and add to something James Lawther commented in a previous post: Instead of trying to push the noodle up the hill, if executives within your company don’t get it, maybe it’s time for new executives.

On the Google Hangout, I give an example of just such a change (a new executive who “gets it”) for a client that I work with. What a huge transformation for them. The Hangout video is unlisted, so I can’t share it here in this post, but if you’d like to view the portion where we discuss this topic, go here.

Update: There’s a discussion happening over at CustomerThink, where this blog is syndicated, around this topic. Check it out and add your thoughts below.

“We cannot become what we need to be by remaining what we are.”
Max Dupree

First published Nov. 19, 2013, at CX Journey.

Discuss

About The Author

Annette Franz’s picture

Annette Franz

Annette Franz, CCXP is founder and CEO of CX Journey Inc. She’s got 25 years of experience in both helping companies understand their employees and customers and identifying what drives retention, satisfaction, engagement, and the overall experience – so that, together, we can design a better experience for all constituents. She's an author (she wrote the book on customer understanding!), a speaker, and a customer experience thought leader and influencer. She serves as Vice Chairwoman on the Board of Directors of the Customer Experience Professionals Association (CXPA), is an official member of the Forbes Coaches Council, and is an Advisory Board member for CX@Rutgers.