Customer Experience Transformation

1. What is Customer Experience Transformation?

Customer Experience Transformation is a company's approach to recognizing what consumers care about the most and the process that follows to create an improved customer experience.

2. What are the components of Customer experience transformation?

Any good program for customer service must include many components. The first is the buy-in of top management to a customer-centered approach to ensure a common vision. Secondly, by redesigning and digitizing them; key customer trips must be defined and transformed. Finally, make the change by having a permanent, live feedback loop from customers to as many employees as possible. By naming the blocks as A, B, and C, we can understand the following-


(i) The starting point for a transformation

Customer experience is a perfect starting point for digital transformation because it emphasizes the development of a satisfied customer and resolves many inherent inefficiencies as well. Keys to success include communicating early and during the process with the client and recruiting cross-functional teams to tap into the experiences and skills of the company. An emphasis on value and the delivery of bottom-line value is also important, as is the capacity within the company to generate strong enthusiasm.
(Building block C)


(ii) A design perspective

Designing new experiences helps workers interact with the value they build for clients, brings together cross-functional teams, and functions as a common language that makes it easier for different departments to communicate. To see what the experience is like for the consumers and to quickly test new concepts, designers may use role-playing and physical prototypes. It is also possible to plan potential customer interactions to create a "North Star" to guide the company on its goals-based path.
(Building block B)


(iii) Common themes in customer experience transformations

A clear vision and a customer-centric ambitious articulation of goals require effective customer experience transformations. To understand customer needs and performance levels, metrics are crucial, but leaders also need to take a holistic view of the end-to-end customer experience. It can take two to three years for a typical transformation and it depends on attracting or upskilling talent to sustain the continuous improvement needed for success.
(Building blocks A, C)


3. What are the three building blocks of successful customer experience transformations?


(i) Build aspiration and purpose

The first step in an effective transformation of customer experience is to match the type of experience you want to offer with a crisp description. When businesses set out to define their goal for customer experience, they often fall into one or both of these two traps: Either the aspiration is generic and does not closely correlate with the intent of the business, or it is unclear how the aspiration can produce the value that can be measured and tracked.

Falling into one of these two traps leads to programs that lack consistency and coherence for CX-transformation.

On market intent and brand pledge, a strong CX aspiration delivers. Nike seeks to provide inspiring experiences in line with their company missions, Starbucks seeks to provide experiences that cultivate, and BMW seeks to provide the ultimate driving experience. Costco does not seek to mimic the experience its consumers have with high-end stores but instead offers an in-store experience without frills that reflects the pledge of low-cost products.

By identifying the particular improvements in consumer behavior they plan to see, businesses then convert expectations into anticipated market value. For example, if a bank is trying to deepen customer relationships, this emphasis might be expressed in a decision to assess progress by the number of clients selecting the bank for all their core banking needs.

Many of the best businesses use quantitative testing and data analysis to base their choices on evidence about what consumers value so that the experiences that matter most can be prioritized. To create convincing business cases for them, most innovative businesses use advanced analytics to run simulations of the anticipated effect of their future investments.

When interactions with the greatest potential effect on consumer behavior have been prioritized, CX leaders recognize the internal processes and technology skills they need to reimagine them substantially. To build a road map that outlines essential tasks quarter by quarter, they consolidate the prioritized experiences and establish the requisite skills. In 24-month intervals with regular phase-gates, these companies usually schedule their investments to verify that the anticipated financial effect has been realized.


(ii) Transform the business

While executives frequently successfully create detailed road maps for CX transformation, many fall into the trap of introducing routine programs to enforce the required change. The most common mistake is the allocation of different program elements to different functions. This leads to coordination issues, ownership problems, and problems with transparency that sink even the most transparent expectations for change.

In businesses that most successfully pursue them, customer-experience projects look and sound entirely different. These businesses build agile, cross-functional teams that have real control of their ventures, deep experience in technology, and a culture of thinking and constant improvement in design.

The cross-functional active teams utilize design thinking and advanced analytics toolkits to conduct rapid-fire quantitative and ethnographic analysis to identify consumer personas and recognize customer needs. To create new ideas and prototypes that resolve pain points, they hold co-creation workshops. To define and prioritize concrete success measures, such as reduced waiting time, they use predictive analytics to measure the real financial effect of improvements in consumer behavior as expressed, perhaps in increased contract renewals, and to monitor progress.

These agile teams ensure that they are scaled around the enterprise, incorporated into the technology infrastructure, and constantly reviewed and perfected across segments and geographies once they have produced new products and services.

No nice-to-have things are this design-driven behavior. A core team that integrates ideation techniques and processes continually performs both generative and evaluative consumer analysis and brings together cross-functional experts with particular skills, such as scrum masters, omnichannel technology developers, designers, and scholars, is another essential component of all effective CX transformation projects. This central team ensures that a specific strategic asset that is maintained over time and through all geographies becomes the culture of technology-enabled innovation.


(ii) Enable the transformation

By developing new capabilities, leaders have successfully introduced new experiences for their customers to embrace the changes.

For performance, there are four that we find most critical:

1. Customer-centered behaviors

Employees must feel assured from C-suite to the front lines that they have the requisite expertise and instruments to provide consumers with the best possible experience. To encourage the development of new skills, leading businesses develop academies that incorporate interactive courses, live seminars, and ongoing nudges. Each learning journey within the company is personalized to a particular function.

2. Integrated technology stack

Companies need a technology stack that enables the company to offer outstanding omnichannel client experiences. It also takes the form of a digital platform built around microservices and APIs to give clients a range of services easily and flexibly, an omnichannel contact-center platform with call recognition, chat, video chat, and email management, and a single system that integrates the platforms.

3. The agile operating model and framework of governance

Innovative teams can only be successful if they have the liberty to make their own decisions. This implies that agile decision-making processes are developed and formal decision rights are delegated to team leaders. Some internal negotiations are often required by these new processes and decision rights, but they produce extraordinary results.

4. Framework for efficiency management based on predictive analytics and machine learning

To address the shortcomings of customer reviews, leading companies are now using predictive analytics, machine learning, and big data, which often offers an imperfect and unreliable view of real customer interactions. At a minimum, businesses need sophisticated feedback loop management programs that teach workers what activities produce the best results and direct innovation teams on where to concentrate their efforts. The best tools allow businesses, based on their experiences, to reliably predict the current satisfaction and potential spending of each of their clients.

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