Tag Archives: CX Transformation

6 CX Competencies to Driving Better Customer Engagements

Overwhelming evidence confirms that improving CX does drive business results and that prioritizing customer experience is the proven path to success. However, many customers feel that only a few companies engage with them well, and even with those companies there is room for improvement.

So why are companies still struggling to deliver great customer engagements? For many organizations, this requires a customer engagement transformation. And how to go about this is often unclear.

Before moving forward with any CX strategy it’s important for your company to understand why it’s important to improve CX and what this will mean for the organization, including what CX competencies you need to establish. You need to assess where you stand on your journey to CX transformation and benchmark where you are against your competitors. This will help your company understand the level of transformation required as well as the urgency.

Once that’s done, you can plot your strategy. In the June 2017 report “Why and How to Lead A CX Transformation”, Forrester has identified 6 crucial CX competencies that companies must establish to start the transformation: research, prioritization, design, enablement, measurement, and culture.

6 CX competencies to establish and optimize

1. Researching your customer preferences

CX competencies
Figure 1: Forrester’s 6 CX competencies from the Forrester Report, “Why And How To Lead A CX Transformation”

If you are just getting started on your CX transformation, then the first thing to do is research to ensure there is a good understanding of your customers wants and needs. This should be the first competency you look at because otherwise it will be very hard to move forward with the other cx competencies necessary to develop your CX transformation strategy.

2. Prioritizing based on what matters most to both – your customers and your business

Prioritization can be done by ranking your most important customer groups, journeys, and interactions and aligning that with your business values and business success criteria, so you can then move forward with the right focus.

3. Designing customer experiences

Then, you will identify and define the experience you want customers to have based on your CX vision and customer understanding (developed in the research and prioritization cx competencies above). This requires generating ideas, prototyping, testing with customers, and repeating that process many times before deciding that a design is done.

It’s important to not define the experience based on what the business wants. Capture what your customers want, and then design the way the organization engages with customers to meet those experiences.

Remember that you want to achieve the experiences that you define, but you don’t control experiences directly. What you do control is how your organization engages with customers, which then leaves customers to perceive these interactions and this results in the experiences your customers have with your organization.

4. Enabling your employees with training, information, and tools

Once you’ve defined the customer experience you want to deliver, you must provide employees with the resources that they need to properly engage with customers, and ultimately provide this experience.

And so, for some companies this might be the hardest part of their CX transformation. If you are dealing with system and process silos or legacy technology, delivering the right CX might mean upgrading technology or fully integrating your business and contact center systems. Depending on resources, it might take longer to work through this stage. But don’t let that deter you. The alternative option of continuing to deliver low quality CX will hurt your company in the long run.

By having the right architecture in place, you can start providing your employees with training, information, and tools that support the intended experience across all touch points.

5. Measuring CX metrics

To understand if your company is doing CX well, will require you to quantify the quality of experiences and link them to your organizations’ overall metrics. Ideally, you want to analyze what happens when customer interact with your brand, how they perceive these interactions, and what they do as a result.

This might require a shift in how you look at customer interactions and what metrics you report on. For further insights into how to measure CX, read the blog Looking at Contact Center Metrics In A Customer-Centric Way.

6.Establishing a customer-centric culture

To make sure that CX is a priority in your company will require a system of customer-centric values and behaviors that focus employees on better engaging with customers.

This is an especially important competency to continue your CX vision and drive business success. If you try to create this culture without looking at the other cx competencies, you are likely to be unsuccessful.

A good start is to educate employees about your customers, CX vision, and their roles in fulfilling your vision. Reinforcing customer-centric behaviors through routines, celebrations, and rewards is another good way to establishing customer obsession in your organization.

Don’t wait to start your CX Transformation

Some CX competencies you may be more mature at than others. Forrester Research suggests that companies establish the competencies they are missing, and optimize those already established. Eventually all competencies need to be optimized to be a well-managed “customer obsessed” organization, and be able to keep innovating.

Remember that with great CX being uncommon these days, acting now means you can more easily get ahead of the competition.  Putting off the number one way to differentiate your business, will make CX differentiation much harder later on.

For more guidance on a CX transformation & how to implement these 6 competencies watch the webinar “CX Transformation: Six Essential Competencies”.

Why Prioritizing CX Is Your Secret Weapon To Business Success

Customer experience is a commonly discussed topic and certainly on the minds of many organizations. As Forrester research shows – 84% of CX executives work at firms that are prioritizing CX more than they did two years ago (“Why CX? Why Now? Forrester Research, October 5, 2016).

Although there are brands that have made significant transformations to delivering high quality CX, customer surveys reveal that this is only true for 1 in 5 brands (Why CX? Why Now?, Forrester Research, October 5, 2016). For many organizations, there is still a lot of room for improvement.

Customers switch brands faster than ever

In the age of the customer, competitive strategy can no longer rely on strength at manufacturing, distribution, or information. Companies that focus on improving their products and services only, without looking for new and better ways to engage and delight customers, no longer stand out among the competition.

Due to a new customer behavior phenomenon called hyperadoption, customers easily switch brands after just one bad experience. This is one of the reasons why it’s important to get every customer interaction right and focus on the new competitive differentiator – customer experience.

Forrester has found that year after year, brands with higher quality CX experience faster revenue growth than their direct competitors with lower quality CX (“Why & How To Lead a CX Transformation, Forrester Research, June 19, 2017). It’s been proven that when customers have a better experience, their intentions to stay, buy more, and recommend the brand all increase.

Adopting a customer-obsessed mindset is the only way to survive

With great CX being exceedingly rare, this creates an opportunity for companies that focus on CX to differentiate from their competition in a major way. To retain customers and attract new ones your organization must adopt a CX focused mindset.

  • The first step on the path to delivering great CX is adopting a customer-obsessed way of operating. According to Forrester Research, companies that have made significant headway on the journey to customer obsession shifted from a customer-aware to a customer-led mindset (“Why & How To Lead a CX Transformation, Forrester Research, June 19, 2017). To make this transformation, you need to shift from delivering customer experience that your brand has defined as acceptable to providing experiences the customer wants instead.[su_spacer]
  • Next, you need to master CX management to reliably deliver the right CX. For many companies, this may be the hardest step, and most likely the reason why they haven’t been successful in engaging their customers. Improving CX can seem elusive because it’s based on customer’s perceptions of their interactions with your brand, but it’s not as mysterious as you may think.[su_spacer]

Forrester has identified the CX competencies that your company must establish to deliver the right CX along with strategies that will allow your company to successfully complete your CX transformation.

Download this complimentary copy of the Forrester report “Why & How To Lead A CX Transformation” to learn about these competencies and gain deeper insight into how to implement this transformation within your organization.