Focusing On Customer Experience Is No Longer Optional

Customer Experience

Ready or not, the customer experience (CX) game is on. No matter what size or industry you may play in, you are now competing based on the experience you provide to your customers. Government agencies, this applies to you as well. So, if you’re not thinking that customer experience is something that you need to be concerning yourself with, you may be digging your organization into a hole that you may not be able to climb out of.

Why has CX become such a fundamental component of brand success?

While certain brands that have understood the power of the customer experience for many years and have continued to refine their CX delivery in new and profitable ways, the notion that all organizations need to consider the experience that they provide to their customers as a competitive driver has really only become something of note over the last decade. One primary reason for this is due to the great leaps and continuous improvements that these CX leaders make to their customer experiences which continue to raise customer expectations.

Brands like Amazon, Apple, and even Uber Eats have provided customers with the ability to engage in experiences that are designed around their specific needs and wants- and they like it. As expectations around experiences evolve those brands that are unable to deliver will undoubtedly lose the affection of their customers. This reality creates the need for organizations in all sectors and industries and of all sizes to ask themselves what they are doing to both understand what their customers want and need and what steps are they taking to be able to evolve their experiences to deliver on those expectations.

The experience that a customer has with your brand, positive or negative, can have a significant impact on your organization. Several years ago, I wrote a column about my experience at Walt Disney World- a trip that I was not looking forward to. To my great surprise, the experience that Disney created at every touchpoint that I had with their brand completely won me over. Since this experience and my reflection on it, I find myself continuously taking mental notes of the way in which my experiences with other brands live up to my expectations (or fail to do so).

A study published in 2018 by Forrester Research compared the stock prices of a sample of CX leaders and laggards to the S&P 500 and found that leaders significantly outperformed both laggards as well as the S&P. The message is clear, those organizations that are better positioned to meet and exceed the experience expectations of their customers in a consistent and repeatable way and those that are best able to adapt to the changing needs of their customers are those who will continue to outperform the competition.

The performance benefits of improving CX make it hard to ignore. From increasing customer engagement, trust, and likeliness to forgive a brand for making a mistake, to improving voluntary compliance to requests, CX has been shown to make the delivery of services more cost-effective. Oftentimes, in fact, the savings gained by improving CX delivery can make the financial arguments against the investment moot. Many organizations that embark on improving their CX delivery find that the effort becomes, in effect, a “self-funding” activity where the savings they see from improving CX delivery outweigh the investments to improve.

Who is your customer?

For many, day-to-day contact with end-user customers is rare. If this is the case for you, it doesn’t mean that CX is not important. Support, or back office, personnel may find themselves serving multiple customers though they may be internal customers. The same principles that serve organizations well when enhancing the end-user customer experience can be applied internally to your internal customers to help facilitate your interactions.

I asked David Hicks, CEO of CX advisory firm TribeCX to weigh in on what differences may exist between improving CX delivery for end-user customer versus internal customers. “There really aren’t significant differences, CX is a way of thinking. Seeking out, what is it that I do in my job that really makes a difference for colleagues/customers and then being fanatical about persistently and consistently improving on it and delivering it can benefit customers regardless of who they may be,” Hicks suggests.

CX in government agencies.

Recent research by McKinsey & Company shows clearly that government agencies, particularly those in the federal government, are lagging behind when it comes to the level of customer experience that they provide. Government organizations have their own, sometimes unique, challenges that make delivering high levels of consistent CX a challenge without a doubt. Many subject matter experts are retiring, draining critical institutional knowledge. Legislative and regulatory rules can make collecting data from customer difficult. Agencies may collect a great deal of data but a lack of integration of legacy systems can make drawing insight from this data a real nightmare. In addition, the role of CXO seems to still be something akin to seeing a unicorn in the public sector indicating that CX has not been at the forefront of managers.

What the most successful organizations do.

McKinsey’s (2018) research on the topic found that the most successful organizations do three things exceptionally well and consistently:

  1. They put themselves in the shoes of their customers. Really, truly taking a hard look at the brand experience through the lens of the customer can be tough but opening the curtain to understand the realities that exist is critical to understanding the opportunities that exist.
  2. They understand their end-to-end customer journeys.
  3. Isolate the moments that disproportionately shape the experience.

Where do you start?

Understanding that you have an opportunity to take a long, hard look at your current customer experience and committing to improve that experience over time is a good first step. David Hicks suggests that leaders begin by, “… buddying up with a front-of-house colleague for an entire day and to listen carefully to them and to the customers with whom they interact. Ask them what the single most important thing is to focus on first. This sends a powerful explicit and implicit message to your staff.”

Regardless of your sector or industry, customer experience is a factor of organizational life that is here to stay. Those that are best able to adapt to meet the changing needs of their customers and that are able to continuously increase the ease of interacting with their brand at key touchpoints are those who will enjoy a substantial and sustained differentiator over their competitors. As customer continue to get comfortable with their newfound new-found power to choose when and how they interact with brands, those that are unable or unwilling to make the effort to truly understand what their customers want and need run the very real risk of becoming irrelevant.

This article originally appeared on Forbes.com

Why Many Culture Efforts Struggle To Drive Sustainable Change

Culture, Climate and sustainable change

There I was, sitting in the office of a senior executive who was struggling to come to terms with the reality that their organizational change effort, though having somewhat significant success initially, was not sustaining. People were quickly slipping back to old behaviors and engagement measures were sliding back to where they were when the change process started.

As I learned more about the “culture” change efforts that this organization had engaged in over the last year and a half, it became clear to me where it went sideways. This leader is not alone in succumbing to this common misconception about what culture is and isn’t and I felt that it was time to take a moment to clarify a few things for the rest of my readers who may be feeling similar frustrations.

The concept of organizational culture has become widely accepted as a critical component of performance in recent years. With this, I find that a great many of my discussions with leaders, often, teeter between several topics that fall within the realm of culture but are not one and the same. This reality can create some understandable confusion and frustration for people.

One common situation that I find myself running into are conversations with business leaders who are attempting to evolve the cultures of their organization but who, in reality, are focusing on organizational climate. Many business leaders tend to utilize the terms organizational culture and organizational climate interchangeably, and while they share many similarities, there are several key differences that delineate them from one other.

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How Blending Brand And Culture Can Impact The Customer Experience

Customer experience

Customer experience is a memory. An impression that can stick in the mind for a minute or a lifetime. A positive experience can result in lasting loyalty, endorsement, and evangelism. A poor experience, on the other hand, can almost instantly mean the end of a brand relationship.

PwC reports that 79% of customers rate customer experience as the most important component of the purchasing decision after product quality and price. According to this research, 59% of consumers who love a brand are prepared to forsake it after having a series of poor experiences. The firm also claims that 17% will walk away after only one bad experience. Needless to say, this is concerning for any business.

In order to create amazing customer experiences, companies need to ensure that they have the appropriate bedrock in place to enable brand and culture to be successfully integrated. In this article, we will discuss the three primary foundations – purpose, promise, and values.

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Working With Difficult People

Working With Difficult People Podcast

In every organization, there will be people that you find to be “difficult”. The question is how to navigate these people in a productive way and that doesn’t cause excess stress for you or your team. What can you do? What you do say? What do you ignore? gothamCulture’s Chris Cancialosi discusses this topic with Wanda Wallace on VoiceAmerica Business Channel. Click here to listen!

Vulnerability Is Your Ticket Out of the Leadership Fishbowl

vulnerability and leadership

No offense to your MBA, but you learned everything you need to know about being an executive in kindergarten. Business schools provide the strategies necessary to run companies, but true leadership comes down to understanding people.

Think back to your first day of kindergarten. Unless you were a wildly outgoing 5-year-old, you probably felt shy and scared. What if I don’t make any friends? What if the schoolwork is hard? What if I miss my mom? These anxieties aren’t all that different from those experienced by business leaders (aside from the mom part). The fix is the same as it was back then: Be brave. Walk into the room, do your best, and work to build new connections.

I’ve worked with numerous intelligent, capable executives who have years of relevant experience. They often suffer from insecurities that we all face at some point in our lives. One of the more common issues is imposter syndrome, which causes otherwise qualified leaders to struggle with the fear of being “found out.” This can cause people to question their every action and isolate themselves from colleagues.

Leaders who struggle with feelings of inadequacy are reluctant to confide in their peers. They stuff their feelings and eventually end up living in a lonely leadership fishbowl. Given that solitary leaders are less effective than their more sociable peers, their fears of falling short often come true.

Sharing your uncertainties is unbelievably liberating; it also humanizes you and lets your team know you care. Escape the leadership fishbowl by embracing your vulnerability.

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