#64 | DCX - Perspectives and insights on digital customer experience

Alignment and Accountability: Keys to CX Success; Discover the Secret to Starbucks' Success; Basic, Surprise & Delight, or Both?; Links to Industry news and the DCX Thought Leader Profile of the Week

Sep 05, 2023

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Alignment and Accountability: Keys to CX Success

a row of yellow stars sitting on top of a blue and pink surface — Photo by Towfiqu barbhuiya on Unsplash

Last week I participated in an invite-only CX roundtable with a number of other senior CX leaders across a variety of industries. One of the questions raised to the group was, ‘What are the key barriers preventing organizations from maturing their CX?’

My peers spoke eloquently about challenges in getting data, poor change management, and lack of focus at the top. However, I firmly believe that the most significant challenge lies in strategic alignment and a culture of accountability across the organization. So this week, let’s take a deeper look at what I mean and how we can turn these challenges into an opportunity.

It’s well known that Customer experience (CX) has become a pivotal point for businesses worldwide. It’s not just about offering a product or service; it's about the entire journey that your customer goes through, from the moment they first interact with your business to the moment they decide to purchase and use your product and even after that. The success of this journey lies in the level of alignment and accountability within the organization.

Alignment in CX

However, getting there requires that all departments within an organization are in sync with each other and are striving towards a common objective, which is to provide an exceptional customer experience.

Alignment in the context of CX refers to ensuring that every aspect of the organization - from leadership to frontline employees, from internal processes to external communications - is working towards a common goal: delivering exceptional customer experiences.

When there is alignment, every decision made and action taken is guided by the objective of enhancing the customer experience. When there is alignment, there is a sense of coherence across all customer touchpoints, which in turn leads to a more seamless and gratifying customer journey. Therefore, it is essential for organizations to prioritize alignment as a key component of their CX strategy.

To achieve alignment in the context of customer experience (CX), organizations face a number of challenges. Do any of these sound familiar?

Siloed departments: Different departments within an organization operating in isolation, focusing on their own objectives without considering the impact on the overall customer experience.
Lack of clear communication: Effective alignment requires open and transparent communication between departments. Without clear communication channels, it becomes harder to ensure that everyone is working towards a common customer experience goal.
Varying priorities: Different departments may have conflicting priorities or different ways of measuring success. This can lead to a divergence in efforts and make it challenging to align their actions toward a shared objective.
Organizational structure: The structure of an organization can also hinder alignment. Hierarchical structures, for example, may create barriers between departments, making it harder for them to collaborate and coordinate their efforts.
Resistance to change: Aligning departments and changing established processes might encounter resistance from employees. People may be resistant to change due to fear, uncertainty, or a lack of understanding of the benefits that alignment brings.

Overcoming these challenges requires a deliberate effort across the entire organization. You need to foster a culture of collaboration, establish clear communication channels, and provide training and support to employees. Additionally, a strong leadership commitment to alignment and a shared vision of the desired customer experience can significantly contribute to overcoming these challenges.

Strategies for Alignment

Define a Clear Vision: Establish a clear and compelling vision for what the customer experience should be and ensure that every employee understands and is committed to this vision. Define and communicate the desired outcome you want your customers to achieve.
Develop a Customer-Centric Culture: Encourage a culture that puts the customer at the center of every decision and action. Foster an environment where customer satisfaction is prioritized and embedded in the company's values.
Establish Clear Roles and Responsibilities: Make sure everyone knows their role in the customer journey and what is expected of them. To establish clear roles and responsibilities, define specific customer touchpoints and assign ownership to individuals or teams. By defining clear roles and responsibilities, every employee will understand their part in the customer journey and what is expected of them. This clarity helps to streamline operations and ensure a consistent and satisfactory customer experience.

Accountability in CX

Now let’s talk about Accountability.

When there is a culture of accountability, individuals at all levels of the organization feel personally invested in delivering great customer experiences and are willing to go the extra mile to do so.

Accountability in CX means taking responsibility for the customer experience at every touchpoint. It means tracking performance, identifying areas for improvement, and taking corrective action when necessary. When things go wrong, instead of pointing fingers, the focus should be on understanding what went wrong, learning from it, and taking steps to prevent it from happening in the future.

When there is accountability, there is a collective commitment to delivering the best possible experience to the customer.

However, it’s not just as simple as assigning responsibilities. Accountability is a mindset that needs to permeate each employee and department of the company. Here are a number of challenges you will face in instilling and nurturing personal and collective accountability.

Lack of clarity: When there is no clear definition of roles, responsibilities, and expectations, it becomes challenging to hold individuals accountable for their actions and performance in relation to the customer experience.
Siloed mindset: In organizations where different departments or teams work independently without collaboration, it can be difficult to create a shared sense of accountability for the customer experience. Silos often lead to a lack of information sharing, which hinders holistic customer-centric approaches.
Measurement difficulties: Effectively assessing and measuring customer experience can be complex due to its subjective nature. Organizations may struggle with identifying accurate metrics and KPIs to track and measure accountability in CX.
Lack of ownership: Without a clear owner or champion for customer experience, it becomes challenging to instill and foster accountability. When no one feels responsible for the overall customer experience, gaps and inconsistencies can occur.
Resistance to change: Resistance from individuals or departments can hinder efforts to instill personal and collective accountability for CX. Some employees may be resistant to changes in processes or practices that are necessary to improve the customer experience.
Limited resources: Insufficient resources, such as budget, technology, or staff, can impede efforts to prioritize and invest in initiatives that focus on enhancing the customer experience. This can lead to difficulties in holding individuals and teams accountable for CX improvements.
Lack of training and development: Insufficient training and development opportunities can prevent employees from acquiring the skills and knowledge required to meet customer expectations. Without adequate support, it becomes challenging to nurture accountability for CX.
Inconsistent leadership: When leaders themselves do not demonstrate a commitment to accountability for CX, it becomes challenging to establish a culture that values and reinforces responsibility for the customer experience.

Addressing these challenges is essential in creating a culture of accountability for CX, as it enables organizations to deliver exceptional customer experiences and drive long-term customer loyalty consistently.

Strategies for Accountability

To enhance accountability within an organization, it is crucial to implement strategies that encourage clarity, measurement, and feedback. These strategies work together to create a culture of accountability, where employees understand their responsibilities and are empowered to deliver a superior customer experience consistently.

Set Clear Expectations: Make sure every employee knows what is expected of them in terms of delivering a superior customer experience. Setting clear expectations becomes paramount as it guarantees that each employee comprehends the exact requirements for delivering a superior customer experience. By clearly communicating the desired outcomes and behavior, employees will have a solid understanding of their role and responsibilities.
Measure Performance: Regularly assess performance against established goals and benchmarks. Measuring performance on a regular basis is crucial in ensuring accountability. It is important to assess employee performance against the established goals and benchmarks to track progress and identify areas that need improvement. This frequent evaluation allows for the identification of strengths and weaknesses, enabling management to provide the necessary support and resources to enhance performance.
Provide Feedback: Offer constructive feedback and recognize employees who excel in delivering a superior customer experience. Providing constructive feedback is an essential component of fostering accountability. By offering guidance and suggestions for improvement, employees can learn and grow from their experiences, ultimately enhancing their ability to provide a superior customer experience. Recognizing employees who excel in delivering exceptional service serves as an incentive for others to strive for excellence as well.

Achieving Success

For a business to truly excel in CX, both alignment and accountability need to be integrated into the organization’s DNA. This means making them a part of the company culture, processes, and performance metrics.

Achieving success in CX requires a robust approach that integrates both alignment and accountability into the organization's operations. It involves creating a customer-centric culture, defining clear roles and responsibilities, measuring performance, and taking corrective actions where necessary. Here are some more detailed actions that individuals and businesses can take to achieve alignment and accountability:

Integrating Alignment and Accountability

Instill a Customer-First Mentality: It is essential that everyone in the organization, from the top-level management to the frontline employees, adopts a customer-first mentality. This means always considering the impact of decisions and actions on the customer experience.
Implement Regular Training: Continuous training programs should be implemented to ensure that all employees have the knowledge and skills necessary to contribute to a positive customer experience. This includes training on the company's values, customer service skills, and the use of any tools or technology that impact the customer experience.
Establish Clear Communication Channels: Clear communication channels must be established to ensure that everyone is on the same page regarding the company’s goals, strategies, and expectations related to customer experience.

Tools for Success

Customer Journey Mapping: This involves creating a visual representation of the customer's journey from the first point of contact to the final interaction. It helps in identifying the touchpoints where the customer interacts with the organization, pinpointing any pain points, and highlighting opportunities for improvement.
Customer Feedback: Actively collecting and analyzing feedback from customers at every touchpoint helps in understanding their needs, preferences, and pain points. This can be done through surveys, social media monitoring, and direct feedback.
Performance Metrics: Establishing clear performance metrics related to customer experience helps in setting expectations for employees and measuring their performance. This includes metrics related to customer satisfaction, response times, and resolution rates.
Accountability Measures: Implementing accountability measures, such as regular performance reviews and feedback sessions, ensures that employees are held accountable for their contribution to the customer experience.

By integrating alignment and accountability into the organization's DNA and utilizing the necessary tools and measures, you can create a superior customer experience that leads to increased customer satisfaction, loyalty, and, ultimately, success.

Remember, creating a successful customer experience is not just about the actions of one department or individual; it's about the collective effort of the entire organization. Everyone has a role to play, and it's only by working together, with clear alignment and accountability, that true success can be achieved.

Discover the Secret to Starbucks' Success

man wearing black sweatshirt — Photo by Asael Peña on Unsplash

Starbucks, the world-renowned coffeehouse chain, is a prime example of a company that has achieved alignment and accountability for CX. Their journey was not without its challenges, but through a strategic approach, continuous pivots, and a commitment to excellence, they have managed to create an exceptional customer experience that has positively impacted their business metrics.

The Problems

In the early 2000s, Starbucks faced a series of challenges that threatened its customer experience. Rapid expansion led to a dilution of the Starbucks brand and customer experience. The focus shifted from the quality of the coffee and customer experience to opening new stores and increasing sales.

Additionally, the economic downturn led to decreased consumer spending and the rise of competitors offering lower-priced coffee options. Customers started complaining about the impersonal service, the quality of the coffee, and the loss of the 'Starbucks experience' they once cherished.

The Initial Approach

Starbucks realized that they needed to refocus on the customer experience to regain customer trust and loyalty. The first step was to acknowledge the problems and take responsibility for the decline in customer experience. Howard Schultz, the CEO at the time, admitted that they had made mistakes and needed to go back to their roots.

The initial approach included:

Closing Stores for Training: In a bold move, Starbucks closed all its stores in the United States for a few hours to retrain its employees on the art of making espresso. This move signaled a commitment to quality and the customer experience.
Revisiting the Store Design: Starbucks realized that the store environment played a significant role in the customer experience. They started to revisit the design of their stores to make them more inviting and comfortable.
Enhancing the Product Offering: Starbucks invested in improving the quality of its coffee and introduced new food and beverage options to cater to changing customer preferences.

The Challenges and Pivots

While the initial approach was a step in the right direction, there were still several challenges to overcome. One of the key challenges was the inconsistency in the customer experience across different stores. While some stores offered an exceptional experience, others fell short of expectations.

Starbucks realized that to achieve consistency in the customer experience, they needed to focus on alignment and accountability. They implemented the following strategies:

Creating a Customer-Centric Culture: Starbucks made a concerted effort to create a culture that puts the customer at the center of everything. This involved redefining the company’s values and ensuring that every employee, from the baristas to the top-level management, understood and embodied these values.
Defining Clear Roles and Responsibilities: Starbucks defined clear roles and responsibilities for each employee and established expectations for the customer experience at every touchpoint.
Implementing Performance Metrics: Starbucks implemented performance metrics related to customer satisfaction, speed of service, and order accuracy. Employees were held accountable for meeting these metrics, and regular performance reviews were conducted to provide feedback and identify areas for improvement.
Leveraging Technology: Starbucks invested in technology to enhance the customer experience. This included the implementation of a mobile app that allowed customers to order and pay for their drinks in advance, thereby reducing waiting times.

The Result

The strategic approach, coupled with a commitment to alignment and accountability, resulted in a significant improvement in the customer experience. Customer satisfaction scores increased, and there was a noticeable improvement in the consistency of the customer experience across different stores. Additionally, the mobile app became a huge success, with millions of users and a significant increase in mobile payments.

Conclusion

The Starbucks case study illustrates the importance of alignment and accountability in achieving CX success. Despite facing significant challenges, Starbucks managed to turn things around by acknowledging its mistakes, taking responsibility, and implementing a strategic approach focused on alignment and accountability. This not only led to an improvement in the customer experience but also positively impacted their business metrics.

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Basic, Surprise & Delight, or Both?

This week I asked our colleagues in the Customer Experience Professionals Group on Linkedin, about which strategy is most effective in enhancing CX.

Let's unpack the intriguing results of this recent poll. These numbers tell us a story, one worth examining closely. After all, what's the art and science of Customer Experience if not to dissect, question, and then rebuild our strategies?

1. Meeting Basic Expectations: The Underrated Dark Horse (16%)

Starting with the 16% who believe in meeting basic expectations: Is this a conservative strategy, or is it undervalued? While some might see this as setting the bar low, there's an undeniable truth here: before you can delight, you must first satisfy. If a business can't get the basics right, attempting 'surprise & delight' will feel disjointed. Imagine a restaurant that can't cook a meal correctly but sends a surprise dessert to the table. The gesture is lost when the fundamentals are amiss.

2. The Allure of "Surprise & Delight" (38%)

Moving to the 38% voting for 'Surprise & Delight' – it's seductive, isn’t it? Going above and beyond, making customers feel special. It's what Instagram moments are made of. However, while delightful moments can turn customers into promoters, they can also set unsustainable precedents. What was once a delightful surprise can quickly become an expected norm. And when that happens, can we still call it a 'surprise'? Businesses must tread carefully, ensuring they aren't setting up a treadmill of ever-increasing expectations that they can't sustain.

3. The Balanced Approach: Not Just Playing Safe (42%)

Ah, the 42% who swear by a balanced approach. This doesn't just mean you're playing safe. It suggests you understand that consistency in meeting expectations, sprinkled with moments of unexpected joy, is a recipe for sustainable satisfaction. It acknowledges that while fireworks are showstoppers, you still need a solid stage to launch them from. A balanced approach offers the reliability that builds trust and the occasional sparkle that enhances loyalty.

4. The Bold 4%: Beyond the Conventional

And to the 4% who chose 'Something else': We need you. You're the outliers, the ones who keep the rest of us on our toes. What innovative strategies are you experimenting with? We must remember that today's innovative outlier approach could be tomorrow's industry standard.

Customer experience is not a one-size-fits-all formula. As much as we look at these numbers for direction, we must also remember the unique tapestry of our individual businesses. Context matters. Customer demographics, industry dynamics, and a company's position in its growth trajectory can all influence which strategy might work best.

But let's be a little provocative here: Are we perhaps over-relying on these defined buckets? Maybe, just maybe, the future of CX lies in creating a new model — one that’s adaptive, data-driven, and that evolves as rapidly as our customers do.

In the dynamic world of CX, let's not get too comfortable. Because the moment we do, we risk being left behind.

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32 Customer Experience Statistics You Need to Know for 2024 (superoffice.com)

Customer experience is now the number one priority for businesses, with the potential to double revenue. This is because customers are willing to pay more for a great customer experience, and 86% of buyers are willing to pay a price premium for luxury and indulgence services. To provide a positive customer experience, companies need to invest in customer feedback collection and provide a consistent experience across all channels, both online and offline.

Customer Experience Is Everyone’s Responsibility (hbr.org)

Companies must create cross-functional relationships and use feedback from customers to create a great customer experience. This is difficult in today's digital-first world, where customers interact with companies in various ways.

Engaged Employees Create Better Customer Experiences (hbr.org)

Investing in employee experience (EX) can benefit customer experience (CX). Companies should connect employees and customers, integrate journey maps, and identify pain points that affect the customer.

Each week, I share a profile from LinkedIn that I believe can positively impact your life and career

This week, meet Sam Stern, Senior Manager of Customer Experience at Linkedin.

Meet Sam Stern, a customer experience guru based in Cambridge, MA. With nearly two decades of expertise in the field, he has become a trusted leader in the industry. Currently, Sam is at Linkedin, where he heads up a team of talented analysts and designers who are dedicated to enhancing the customer journey.

But Sam's passion doesn't stop there. He loves sharing his insights and knowledge with others through his captivating podcast and newsletter, CX Patterns. Twice a month, he explains a customer experience pattern that underpins some of the world's best customer experiences, providing in-depth insights about critical customer experience topics like trust, anticipation, setting reasonable expectations and many more.

Armed with a Bachelor's degree from the prestigious Yale University, Sam's educational journey didn't end there. He pursued a master's degree in Human Factors and Information Design, allowing him to leverage his expertise across various customer experience disciplines.

From strategy and design to fostering a customer-centric culture, Sam's skills know no bounds. In fact, he even created a renowned course on LinkedIn Learning called "Customer Experience Strategy: Build a Customer-Centric Culture."

Before his current ventures, Sam held notable positions as a Senior Manager of Customer Experience at New Balance and 16 years as a Principal Analyst at Forrester. These experiences have shaped him into the accomplished professional he is today.

It's clear that Sam Stern not only has an impressive track record but also a genuine passion for all things related to customer experience. With his wealth of knowledge and undeniable expertise, Sam Stern is a name you'll want to remember in this dynamic field.

Sam’s latest episode features Part 2 of his conversation with Kelly Price, a former colleague at Linkedin and now leading CX at Cyberark. They talk about the right way to do research for customer journey mapping and the importance of knowing the limitations of journey maps so that you benefit from their tremendous insight.

Enjoy!

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