Published on October 29, 2023, 8:51 pm
Customer experience has always been a priority in business, and it can be traced back to the development of market research in the 1920s. Back then, businesses sought to improve their advertising efforts by understanding consumer preferences. This practice expanded to other sectors after World War II, driven by the rise of consumerism.
Now, with almost a century of experience and advanced technology at our disposal, it’s natural to wonder if we have reached the pinnacle of customer experience best practices. Are there still areas where we can improve?
According to Maxie Schmidt, Vice President and Principal Analyst at Forrester, there is definitely room for improvement in customer experience measurement efforts. In Forrester’s recent survey on VoC (Voice of the Customer) and CX (Customer Experience) measurement practices, nearly half of the respondents rated the maturity of their programs as low or very low. Additionally, teams struggle with collaboration and buy-in from other departments.
Schmidt highlights three key areas where CX measurement can be improved: tracking, embedding, and proving value. Many CX teams still rely heavily on surveys to measure customer experience but struggle to track quality effectively. Furthermore, they believe that stakeholders within their organization consider the program vital but face difficulties empowering stakeholders and holding them accountable. Additionally, CX professionals often find it challenging to link CX metrics to business metrics.
To gain more insights into how organizations can excel in measuring customer experience, you can listen to Schmidt’s perspective through the provided PodChat player.
In a world increasingly reliant on technology, it’s important to understand what customer experience means now compared to in the past. This loss of connection with customers may be partially attributed to our greater reliance on technology. However, among CMOs (Chief Marketing Officers), “customer experience framework” has become a common term in their vocabulary. A customer experience framework helps guide organizations through their customer experience transformation efforts by providing a vision and structure.
Low measurement maturity poses a significant challenge for customer experience leaders, according to Schmidt. To address this issue, organizations need to identify the metrics that should form part of their measurement toolsets. Best-in-class marketing organizations are more likely to have these tools and practices integrated into their customer experience strategies. However, many organizations struggle with executing customer measurement strategies and achieving desired customer experience outcomes. To determine which best practices fit their business model, organizations must evaluate their objectives and align them accordingly.
To sell the idea of customer experience transformation to the C-suite and board, the customer experience leader needs to demonstrate the tangible benefits such as increased customer loyalty, satisfaction, and revenue growth.
For an organization serious about customer experience measurement, certain minimum requirements must be addressed. These include establishing a clear vision and framework, defining key metrics and indicators, implementing a robust measurement system, obtaining buy-in from stakeholders across departments, and continuously monitoring performance.
While customer experience is primarily the domain of the CMO (Chief Marketing Officer), collaboration between the CIO/CTO (Chief Information Officer/Chief Technology Officer) and IT teams is crucial in realizing the goals of customer experience. Their support can ensure that technology infrastructure supports seamless CX initiatives.
According to Forrester’s research findings, successful alignment between marketing, the customer experience team, and IT is not yet prevalent but has significant potential to drive positive outcomes.
To establish this alignment within existing organizations requires fostering a culture of collaboration and collective responsibility. Breaking down silos between departments by encouraging shared goals can strengthen cooperation and improve overall customer experience.
Finally, when it comes to achieving desired customer experiences through collaboration among different heads of departments, effective communication is key. Regular discussions aligned with shared objectives will help create synergy among teams while avoiding conflicting agendas.
In conclusion, while we have made progress in improving customer experience over the past century through market research methods and technological advancements it’s clear that there is still room for improvement. By focusing on tracking, embedding, and proving value in CX measurement, organizations can strive for excellence in measuring and delivering outstanding customer experiences.