The importance of Customer Experience is still on the rise, driven particularly by the digitalization of organizations. This sets new benchmarks for everyone and provides new opportunities for organizations to redefine themselves, to catch up with leading CX organizations, like Uber, Amazon, Google, or Ping An, a healthcare management platform in China. But this is also creating new business models.
In that the customer experience focus is super important, allowing organizations to think about what they need to do. Reduce legacy systems, or move to the cloud, or create new digital touchpoints, but also more and more change the way of working, by adopting agile, and adopt the right consumer insights infrastructure. It is more and more important to understand what your customers are expecting from you.
Let us introduce to you a framework for your organization to transform into a customer-centric organization by introducing performance management.
Why you need to gather Experience Data
To deliver up to that promise there are some barriers to achieve a strong Customer Experience; limited gathering and understanding of CX metrics, unable to act on CX insights, or not understanding how to convert the insights to action or lack of understanding of customer behavior. Only 41% of executives look at CX metrics more frequently than once per quarter. And only 1 out of 10 organizations measure Customer Experience effectively[i].
And the common KPIs in most organizations, like Net Promotor Score (NPS), Customer Lifetime Value (CLV), Customer Satisfaction (CSAT), Retention Rate, or Churn Rate does not represent the Customer Experience value. Very few organizations know how to orchestrate themselves and measure Customer Experience performance and its impact on bottom-line results. Let’s continue to understand what it takes to start to measure your CX performance effectively.
There are 3 things you need to very good at to start with CX performance management:
- Embed your CX performance inside your customer journeys and measure experience performance at journey level;
- Invest in next-gen technology that can capture customer feedback daily from multiple channels. Integrate survey responses, social media posts, and operational data into comprehensive dashboards;
- Have a continuous improvement mindset at all levels crossing departmental boundaries.
If done right, a full Customer Experience business transformation can generate significant business value[ii]:
- Top-line growth – 15-25% increase of revenue;
- Efficiency gains – 10-20% reduction in costs;
- Enhanced customer satisfaction – 20-40%-points increase in advocacy.
Four steps to transform into a CX organization
We believe there are four steps to take to transform your organization into a Customer Experience ‘first’ or ‘customer-centric’ organization. You need to link strategy to CX and measure performance and sub drive improvements through the entire organization to feature teams that exist in a DevOps environment.
- You need to translate business strategy into clear CX goals and link that to operational metrics. Measure a simple NPS score is not good enough.
You can use a simple Benefit Logic to help you look at your business KPI’s and link that to your CX metrics and operational metrics.
Figure 1: Example of a Strategic Value Framework with CX metrics by Capgemini Invent
- Once you have a clear view of what your business strategy is and how you want to perform, then take a Human-Centered Design approach to gain a deeper understanding of customers. Use qualitative and quantitative data and map this to your customer journeys and then overlay the CX KPIs to the customer journey touchpoints. Look particularly at the moment of the truth, the touchpoints where you have to perform. For instance, retention or share of wallet and design the experience around these touchpoints.
- Start an iterative approach to measure the performance of the customer experience touchpoint and drive customer improvement initiatives to optimize. To measure the performance of the customer journey touchpoints you need to invest in market-leading applications like Qualtrics, Thunderhead, Adobe Analytics, Qlik, etc. These applications provide you with the necessary real-time insights into facts and figures on an interactive dashboard. And generate customer insights for you to start with improvement initiatives.
Figure 2: CX Maturity & KPI Evolution model by Capgemini Invent
- Finally, you need to scale this business transformation, add more customer journey touchpoints in this approach with continuous improvements.
This will transform your organization. Stop by having standalone journeys in your organization, but start to creating accountability in your organization for the various journeys and create cross-functional feature teams that deliver upon those customer journeys and their CX KPIs. And adopt a new organizational culture of continuous learning where insights play a key role to refine, optimize, and deliver the next best experience for your customer.
What you need to gather Experience Data
Customer Experience data is about emotions and feelings, the ‘why’ of human behavior. For example, why do customers abandon their shopping carts or share a product review? Why do customers return to your shop? All this is insights into the voice of the customer. You can gather these insights from social media, interactions via call centers, online surveys, or face-to-face in a shop.
To gather and manage all these insights, all this data, you need a solution that can provide you with a single source of truth. The same kind of solution was needed 30 years ago, where companies needed to gather and manage all operational data. Gather data from all sources in the company, store it in a single location to manage all data, and build reports from a single source of truth. It was the rise of ERP solutions. It enabled companies to have a common operational view of what was happening in the business. It gave the companies the ability to trigger workflows across departments and following the flow of information. ERP solutions changed how organizations operate.
We now need a similar solution for Customer Experience data. We need the ability to understand what the customer is experiencing. Not just for a single touchpoint, but across their end-to-end journey. To empower companies and their departments to understand their contributions to make an impact. All this feedback, all this data has to be managed effectively. You need to have a single platform that can integrate multiple data sources, such as CRM activities, call center feedback, and data from 3rd party solutions like social media and product reviews. You need one platform, one set of data, and one source of truth.
What solution to manage Experience Data?
Since Experience Management is rather popular many solutions have entered the market. Some are completely new, while others have extended their capabilities to manage Experience Data. It is crucial to understand the capabilities, vision, and roadmap of a vendor before selecting a solution. Therefore we strongly advise discussing your strategy and roadmap with your partners.
You should select your solution based on your business requirements. Factors like customer target market, number of brands, and geographical footprint should be considered while selecting the platform to manage Experience Data. These factors greatly affect the Experience Data Management solution. You should also consider the list of needs of various departments like IT, Customer Service, sales & marketing, etc. as the Experience Data solution should get integrated with emails, surveys, your existing customer database, and CRM systems.
According to G2, a recognized peer-to-peer software review platform, these are the Top 10 Experience Management solutions for Enterprise Businesses: 1. Qualtrics Customer Experience, 2. Gainsight, 3. Totango, 4. Confirmit, 5. AskNicely, 6. Medallia, 7. Wootric, 8. SurveyMonkey CX, 9. iperceptions, 10. CustomerGauge.
Figure 3: G2 Grid® for the top Experience Management Software products for Enterprise[iii]
Think BIG, Start SMALL, Scale FAST. This is the philosophy of Seth Godin, entrepreneur and public speaker on marketing, tribes, and respect. And it very much applies when changing your organization to a Customer-Centric organization. To think big, start small, and scale fast its crucial to define CX goals, focus on one priority journey, and prove value quickly. And start making those CX goals and its performance visible via a real-time dashboard to transform your organization.
At Capgemini, we are experienced in setting up a CX performance program and implementing Experience Data management solutions. We have shown you the four steps you need to take to transform your organization into a CX organization. And we are looking forward to walking with you on that journey.
[i] Gartner – Customer Experience Trends 2019
[ii] Gartner – Calculating the ROI of customer experience initiatives,
Forrester – How Customer Experience drives