Why are you the path to customer experience maturity


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Why are you the path to customer experience maturity

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Why are you the path to customer experience maturity

  1. 1. For Customer Experience Professionals oCTOBER 11, 2013 Where Are You On The Path To Customer Experience Maturity? Assessment: The Experience-Driven Organization Playbook by Megan Burns with Harley Manning, Molly Murphy, and Corey Stearns Why Read This Report Success in the age of the customer requires the ability to design, implement, and manage customer experience in a disciplined way — a capability few firms have today. They can build this capability by following a four-phased path: Repair, elevate, optimize, and differentiate. Each phase requires employees to adopt new, increasingly more sophisticated customer experience management practices that fix what’s broken and prevent future problems. This report helps firms map practices from Forrester’s customer experience (CX) maturity framework to each of the four phases on the path to maturity. CX professionals can use it to assess which phase their organization is in today and which gaps they have to close before moving on to more advanced activities in their plans to build an experience-driven organization. the path to customer experience maturity has four phases To compete in today’s business climate, companies need a disciplined approach to customer experience. In our previous research, Forrester concluded that firms must adopt a set of 40 core practices in order to achieve the necessary level of discipline.1 Companies should adopt these practices over time by following a four-phase path:2 ■ Repair. To get started, companies need to adopt practices that enable the organization to find broken experiences, fix them, and measure the results. This approach builds expertise for customer experience professionals and establishes credibility for their efforts. ■ Elevate. To advance beyond the endless cycle of finding and fixing customer experience problems, firms must adopt practices that lead them to deliver the right experiences in the first place. Those practices include crafting a customer experience strategy and sharing customer insights programmatically with all employees. Companies should also start adopting practices that set the stage for future advancements, like integrating customer insights into core business processes, adding specific customer experience tasks to employee job descriptions, and following human-centered design processes for new experiences. ■ Optimize. To lock in customer experience discipline, companies must become systematic at all 40 practices. That applies to both practices that got started in the elevate phase and new practices that begin in this phase. New practices in the optimize phase include modeling the relationship between CX quality and business results and applying strong design processes when updating experiences, not just when creating an experience from scratch. Headquarters Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA, 02140 USA Tel: +1 617.613.6000 • Fax: +1 617.613.5000 • www.forrester.com
  2. 2. For Customer Experience Professionals 2 Where Are You On The Path To Customer Experience Maturity? ■ Differentiate. Making it through the first three phases gives an organization the ability to design a specific experience and deliver that experience consistently. But it doesn’t guarantee that the resulting experience will yield long-term competitive advantage. For that, firms must go beyond customer experience management by applying the customer experience innovation framework introduced in our recent report, “Customer Experience Innovation Demystified.” That framework calls for reframing business challenges in the context of unmet customer needs, connecting innovation ideas to a firm’s customer experience ecosystem, and infusing experience innovations with the brand.3 Take Our Self-Test To Pinpoint Your Company’s Current Level Of Maturity To help customer experience professionals develop a road map to CX maturity, we updated a previously developed assessment tool to align with our new findings. The graphic below lists all of the practices that a company should perform in each phase and the minimum level of adoption that firms should reach before moving on to the practices in the next phase (see Figure 1). CX professionals can download an Excel spreadsheet version of the self-assessment to share with others in their organizations. © 2013, Forrester Research, Inc. Reproduction Prohibited October 11, 2013
  3. 3. For Customer Experience Professionals 3 Where Are You On The Path To Customer Experience Maturity? Figure 1 The Customer Experience Maturity Self-Assessment Minimum level required: Practice Systematic Repair Elevate Ad hoc Optimize Differentiate Collect operational data about customer interactions (e.g., length of a call, web pages viewed, errors encountered). Collect unsolicited feedback from customers about their experiences with the company (e.g., by mining calls, emails, or social media posts). Solicit qualitative feedback from customers about their experiences with the company (e.g., through surveys, interviews, or usability studies). Measure how customers perceive their interactions with the company (e.g., satisfaction with a specific experience, overall satisfaction). Calculate measures of customer experience quality overall and by key customer groups, customer journeys, or quality attributes (e.g., friendliness, responsiveness). Review customer experience metrics and project status regularly to monitor progress. Maintain a dedicated queue of current and proposed customer experience improvement projects. Facilitate coordination across groups that share responsibility for a given experience. Communicate the importance of customer experience to employees, customers, partners, and other stakeholders. Use informal rewards and celebrations to highlight exemplary customer-centric behavior. Analyze customer insights and data to identify key customer pain points and opportunities. Define a customer experience strategy that describes the intended customer experience. Align the customer experience strategy with overall company strategy. Align the customer experience strategy with the company’s brand attributes. 102543 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. October 11, 2013
  4. 4. For Customer Experience Professionals 4 Where Are You On The Path To Customer Experience Maturity? Figure 1 The Customer Experience Maturity Self-Assessment (Cont.) Practice Document what you know about customers in a way that is easy for all employees to understand (e.g., personas, customer journey maps). Repair Elevate Optimize Differentiate Share customer insights with all employees (e.g., distribute personas, voice of the customer reports). Collect input from employees about their interactions with customers. Share the customer experience strategy with all employees (e.g., distribute documentation, conduct training sessions). Follow a human-centered design process any time a new experience is introduced or an existing experience is changed in a significant way. Use customer insights to focus and define requirements for projects that affect customer experience. Define a consistent customer experience metrics framework that aligns with how customers judge an experience and is consistent across functional and business unit silos. Share customer experience metrics with all employees. Consider the impact to customer experience when making business decisions about policies, processes, and technology. Identify the complex interdependencies among people, processes, and technologies that shape interactions with customers (e.g., map your customer experience ecosystem). Add relevant customer experience management tasks to employee job descriptions. Define specific customer experience metrics for employees and organizations based on how they contribute to overall customer experience quality. Evaluate employee performance against relevant customer experience metrics. Screen candidates for customer-centric values as part of the hiring process. 102543 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. October 11, 2013
  5. 5. For Customer Experience Professionals 5 Where Are You On The Path To Customer Experience Maturity? Figure 1 The Customer Experience Maturity Self-Assessment (Cont.) Practice Repair Elevate Optimize Differentiate Screen candidates for the specific skills needed to deliver on the organization’s intended customer experience as part of the hiring process. Provide training to help new and existing employees build and maintain the skills they need to deliver the desired customer experience. Perform rituals and routines that reinforce the importance of customer experience and what it takes to deliver it. Collect and share stories of customer experience best practices across the employee base. Model the relationship between the drivers of customer experience quality and business outcomes to determine which ones matter most. Define a consistent set of customer experience standards across the organization. Use “impact to customer experience” as a criterion for approving, funding, and prioritizing projects. Connect formal reward structures (e.g., raises, bonuses, promotions) to performance on CX metrics. Whenever a change is approved to a policy, process, product, or technology that affects customer experience, proactively adjust the design of that experience to reflect the change. Use iterative ideation, prototyping, and evaluation as part of the experience design process. Conduct observational research studies in customers’ natural environment (e.g., in-home observations, shadowing). Engage customers, partners, and employees as part of the experience design process (e.g., co-creation). 102543 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. October 11, 2013
  6. 6. For Customer Experience Professionals 6 Where Are You On The Path To Customer Experience Maturity? R e c o m m e n d at i o n s create a realistic road map for change This self-assessment is designed to help customer experience professionals create a road map to lead their organizations along the path to customer experience maturity. Here’s how to take your results and translate them into a plan for change: ■ Find your starting point. Compare your firm’s current adoption level for each practice to the minimum requirement for each phase, starting with repair. If you’re appropriately systematic or ad hoc for every practice in the repair phase, move on to the elevate phase and begin looking for gaps to close there. But beware: Although most firms will find they have work to do before advancing beyond the repair phase, they’ll be strongly tempted to skip ahead. Resist the temptation. Trying to master more advanced practices without first establishing solid fundamentals will drastically increase your chances of failure. ■ To close gaps between your current and ideal state, plan to get personal. If you marked a practice ad hoc, it’s because people who should be performing that task aren’t doing it when they should. Make a list of all of those people, and then define how often they should be performing the practice and any events that should trigger action (e.g., time elapsing, customer scores dropping, a new process phase beginning). ■ Build a customized plan for each group or role. Once you’ve got a list of the who and when by practice, sort it by group or role. This will help you communicate more clearly to others by showing: 1) all of the things people in a group or role need to start doing; 2) when and how often those people should be doing each of their tasks; and 3) how you’re going to layer those tasks into their daily activities over time. Supplemental Material Online Resource The online version of Figure 1 is an interactive tool to assess the state of an organization’s CX maturity. It lists the practices in each phase and the target adoption level and then lets you choose the level that best reflects where your organization actually is today by calling out any practices for which there is a gap. Endnotes The six discipline of customer experience are: strategy, customer understanding, design, measurement, governance, and culture. See the June 14, 2012, “Customer Experience Maturity Defined” report. 1 © 2013, Forrester Research, Inc. Reproduction Prohibited October 11, 2013
  7. 7. For Customer Experience Professionals Where Are You On The Path To Customer Experience Maturity? 2 7 Forrester studied companies that tried to adopt customer experience discipline over time. We concluded that firms that actually succeeded at this goal followed the same four-phase path. See the July 1, 2013, “The Path To Customer Experience Maturity” report. “Innovation” has become a buzzword in the customer experience field. Everyone talks about it, but no one knows quite what it is or how to attain it. In fact, most firms that believe that they’re innovating are actually thwarting differentiation and wasting massive amounts of time and money in the process. Our research provides a framework to help customer experience professionals create true innovations: new experiences that drive differentiation and long-term value. See the June 27, 2013, “Customer Experience Innovation Demystified” report. 3 Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 13 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 29 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. © 2013 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@forrester.com. For additional reproduction and usage information, see Forrester’s Citation Policy 102543 located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.