Sep 22, 2011 10:54 AM
How can you convince your execs to commit to customer experience initiatives?
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In some organizations the top executives don’t need to be persuaded to invest in customer experience. They “just get it." But not everyone works at a Zappos or a USAA... If you’re working in one of the “ordinary” companies that doesn’t have customer centricity in its DNA, what tactics have you used to convince your execs of the importance of customer experience?
Please let me know what has worked (or failed) for you...
A few years ago, I remember speaking with a company in Japan about personas. In that organization, the CEO was the "roadblock" - I think he perceived personas as frivolous. His direct reports felt that it was important to have a set of personas to use across the company, but they realized that they couldn't convince the CEO with a traditional business case or ROI model. Instead, they used storytelling techniques to demonstrate the need to understand customers at an emotional level. Through storytelling they were able to convince the CEO that personas could help company employees to empathize with real customers. It was this "emotional" appeal that ultimately convinced the CEO.
In my daily business I'm often involved in situations where we try to convince companies decision makers with cem/cx strategy. This may be because in germany the majority of companies still has no formal cem/cx strategy. The other reason is that I'm working a lot with B2B businesses.
We learned about the importance of story telling. The best way is to sketch a real life story about the todays customer experience and then to tell a compelling vision. Sometimes a real life example, even from a totally different business may underline the importance, may clarify that the vision isn't science fiction.
Make sure to position your vision as a guidepost, not the ultimate destination.
Once you got the buy in:
Involve the right people into the process of creating the ultimate vision for the companies business.
Iterate often and involve all relevant stakeholders into the touch down meetings.
Build a clear connection between the vision and the business goals, including a ROI scenario.
Start to implement the vision in small, realistic steps.
Where do you aim to get the right buy in, Hartmut? Does it need to be the very top of the company, or is there a better place to build support for a customer experience strategy in B2B companies?
It's a good ida to start at the highest level you can get in touch with. This does not neccessarily mean to start at c-level; but if you plan to drive a company wide initiative, sooner or later you definitely will need the buy in from there.
Recently we started in the LOB of an international bank. We started to create a customer journey based on interviews and conceptual work and invited next level management to our iterations. The people on customer side began to adopt our work as their initiative. They understood that the idea of CEM/CX will be game changing for the whole business and iteration after iteration we got in touch with the higher levels of management.
The individuals at the bank finally presented our joint story to their c-level and with the buy in from there we were able to start into the implementation.
Hartmut, I really like the idea of moving up the organizational ladder one rung at a time. It's practical and ensures that you don't miss any important layers that will be key for execution down the road.
Have others had success with this approach? Or have you gone straight to the top?
Whether you start in the middle somewhere or at the top, the key is to get senior executive AND middle management buy-in at the start, in the middle and at the end. In addition, sometimes the best insights come from the people who don't usually get asked for their opinion.
That said, execs commit when they see the value and when the value doesn't get in the way of other core deliverables. If you can't communicate the value and how it aligns with their goals in a clear and concise way, you will have a hard time getting real commitment. Beyond commitment at the top though, you have to get commitment and understanding buy-in across the organization being effected. The outcome of customer experience initiatives is frequently classic change management, an area that larger companies typically have trouble with anyway.
From past lives as a line executive and now in my role on the advisor side of the table, I have always found the link to organization performance to be the key requirement to cement an executive's commitment to customer experience. Kerry you asked specifically about commitment to initiatives -- and so the second thing I would add is to show how each initiative gets you further faster than other alternatives (including doing nothing) toward the target experience you are trying to create.
Hartmut and Jonathan, I agree that and emotional or story telling approach works. We're all customers ourselves, right? And as customers we can't mentally separate the facts from the emotions when we make decisions, so it makes perfect sense that we should ensure we make a case for CE initiatives using both.
Regarding level - great question. For an individual initiative the person who owns the scope of the outcome is good, regardless of level. But for customer experience commitment overall, eventually top exec commitment is a must. We did some national leader research in the US recently. We found that organizations that had "lonely champions," committed to customer experience to drive performance in single or spotted areas of the organization did perform better than organizations where there was no commitment -- but none of the lonely champion organizations performed as well as those who had a customer experience commitment throughout. For the best payoff, everyone has to play.
Linda, thanks for your insights!
I'm wondering if you (or anyone else in the community) has had success leveraging the support of one "lonely champion" into broader support across the entire executive team? What tactics have worked?
Hi Kerry,
Yes - we initially ran into leadership resistance until a new CMO joined the organization. He was very receptive and once we sold him baed on a strong link between CE and bottom-line, he sold the program to the rest of the C-suite. I continue to believe in a single powerful metric. In our case it was: shifting 1% of our passives to promoters results in $xx.xM additional annual revenue.
Best regards
Roger
FYI, Moira Dorsey and I have just published a report called "Why Customer Experience? Why Now?" And if you're not a Forrester client, don't worry – you can download the report for free!
We hope it will help you make the business case for CX. Please let us know which arguments and recommendations resonate best with your execs.
The more I've thought about the question, the more my experience tells me its usually not the executive buy-in that's the stumbling block, it's most often the middle management that stymies the success of any initiative. How many times have we all seen a senior executive come back from a conference or retreat or read the conclusions of an outside consultant and decide its time for the organization to embrace change.
In the case of customer experience, almost every executive I've ever met (and I'm limiting my thoughts to the successful ones), fully embraces the tenets of customer experience, the correlation between loyalty and lifetime revenue and in many cases the relationship between customer experience, brand equity and market capitalization. You only need to look at Netflix to see prove the case.
No the problem generally is not that executive management doesn't get it and doesn't support the idea, the real problems are always around implementation. As they say, the devil is in the details. At the director, or mid-level, most marketers are charged with the performance of a set of specific activities, like campaigns or technology or vendor management for example and they are both given the resources and the KPIs to achieve and measure their goals. It is rarely the case however that those goals are really around being obsessed by customers and putting the customer experience at the center of what they do. Customer experience crosses all the organizational silos, from sales and marketing to customer service, operations and finance. Yet few middle managers who are the ones who actually drive the individual elements of the experience cross those same boundaries.
The answer? It is up to the executive sponsor of the initiaitve to not just champion the idea, but they must be committed to removing the organizational roadblocks that prevent the middle tier from bringing the initiative to life. Bureaucracies are the biggest challenge, but executives.
I think you've identified a key insight. CX is a value that a company holds dear not merely a project or intiative that the Executive Committee has funded.
From experience, I can tell you, that senior executives being involved or at least making it clear the importance of CX projects does have an impact but often that impact is temporal. One of our most successful large projects was for a FinServ client where the President attended only 3 meetings, the kick off, the presentation of the strategy and the first creative presentation. He only stayed for maybe 30 minutes of each meeting but was engaged and interested in the project and made a point to tell everyone in the room how important this was to the success of the business. He believed delivering a great CX that was beyond their competitors was going to be a business advantage and everyone on the project picked up that torch even when he wasn't in the room. So executives can influence projects positively.
But you are absolutely right that this isn't enough to sustain efforts.
CX is a value that permeates the company. People need to get hired, fired and promoted based on the company's CX.
I have found one marker in organizations that determines if they will be great at CX. Is the CEO the most demanding customer of their own product? How many bank CEOs use their online banking product or walk into a branch on a regular basis? How many airline CEOs have to buy tickets online or stand in lines?
Steve Jobs was the most demanding customer of Apple products. I believe firnly that Reid Hastings manages his Netflix queue. Pretty sure Jeff Bezos buys from Amazon. When companies and executives "eat their own dog food" there is a much greater chance they will create better CX. They create cultures that support CX. They create cultures that value it.
I love the "eat your own dog food" approach. Even if execs don't regularly use their companies products/services (which I agree is ideal), I've seen several of our clients have success by making their execs at least sit down and walk through a couple of key scenarios.
Has anyone else had success with this?
Hi Kerry, it's been ahwile since I've had time to participate in some of these discussion.
I agree with the points Jonathan has been making. When I was with Lufthansa, there was a mandate that all senior management was required to experience what our customers went through on a regular basis. As GM out of San Francisco, I went to the airport at least once a month, helped at the check in counter, loaded bags and hung around the gate before a flight. In addition to flying our own airline, which I did on average every month, I was also required to fly the competition on a regular basis to see what their customer experience was like and actually file reports on the experience. This was just a normal part of the job, but went a long ways to making sure we didn't fall prey to the ivory tower equivelent at the corporate office. Later when I was at T-Mobile, I made my CRM team actually go out and shop our own stores and our partners. In part, the exercise was to experience the world through our customers eyes, in part it was to see if the communications and messaging we created back in the office, actually was delivered by customer-facing staff. It was always very eye opening. I remember one time i was taken to the street markets in the Bronx to see vendors selling T-Mobile pre-pay phones out of cardboard boxes on street corners. Talk about an engaging customer experience.... But that's another story. I think the key is that all employees, but especially middle management and "HQ" folks, have to get out of the office on a regular basis and understand what the physical customer experience is like. Then we can use that information to inform both the physical as well as the digital customer experience and hopefully improve both and gain a greater visibility into the world of the customer.
hi John,
Great to see you weigh in on this! Hope you're doing well.
I agree with your point that convicing execs to simply act as cheerleaders for CX initiatives isn't enough. How have you gotten execs to realize that they also need to remove "the organizational roadblocks that prevent the middle tier from bringing the initiative to life"? To change the goals of middle managers so that they ARE about putting CX at the center of their activites?
Honestly, I haven't seen any rational procedural methodologies that work. The executives who do it, seem to have an instinctive feel for it. They "believe" or have "experienced the pain". That's where I go back to the point of the executives who are the most demanding customer's of their own product seem to be more successful at their CX projects.
Recently we finished a project with Beatport (http://www.teehanlax.com/work/beatport-redesign/), they are the leading digital music retailer to the Electronic Dance Music and DJ community (this is a very significant business). It's where DJs buy their music. Their CEO DJs, most of the staff DJ or create music. They spend alot of their personal time buying music from themselves for themselves. They are out at clubs and festivals talking to their customers and the people who sell their music through the site.
They knew every CX pain point and need when they came to us. It was amazing to collaborate with that company. There was nothing I could do to instill that passion and insight.
One of our diagnosis questions is to probe how often the company is using its own products. We often use that as a jumping off point to get executives to experience it for themselves. At the end of the day, I'm not sure you can teach "passion" but you can try and make them see reality.
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