Decoding Customer Experience

Decoding Customer Experience

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Decoding Customer Experience
Decoding Customer Experience
DCX Links | August 25, 2024
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DCX Links | August 25, 2024

From Rethinking how to use Data to CX growth strategies to Netflix's CX playbook: This Week's DCX Hot Takes!

Mark Levy's avatar
Mark Levy
Aug 25, 2024
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Decoding Customer Experience
Decoding Customer Experience
DCX Links | August 25, 2024
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Welcome to this week's roundup of customer experience insights!

This week, I've handpicked a diverse range of articles to challenge your thinking, broaden your perspective, and sharpen your skills.

From rethinking our approach to data and scaling CX operations to learning from industry giants like Netflix, I've got you covered. We'll also explore the psychology behind user onboarding and dive into the fascinating world of visual storytelling.

Whether you're looking to refine your strategies, spark creativity, or simply stay ahead of the curve, these reads are sure to provide valuable food for thought.

So grab a cup of coffee, settle in, and let's embark on this journey of professional growth together!

-Mark


Here are this week’s must-read links:

  • It’s Time to Rethink How We Use Data

  • CX Growth: Patience and Quality Over Speed

  • Unleash the Potential of Your Organization

  • Netflix's CX Playbook

  • Onboarding Psychology: Mind Games for Happy Users

  • How creatives translate complex concepts into visual languages

-Enjoy!

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It’s Time to Rethink How We Use Data

Why it matters: As a CX professional, you live and breathe data. It's your north star, your secret weapon, your trump card in boardroom discussions. But what if I told you that your relationship with data might be leading you astray?

The recent HBR article Where Data-Driven Decision-Making Can Go Wrong (hbr.org), is a wake-up call for all of us in the CX world. It highlights 5 common mistakes in data interpretation:

  • Conflating correlation with causation

  • Underestimating the importance of sample size

  • Focusing on easily measurable outcomes rather than relevant ones

  • Misjudging the generalizability of results

  • Overweighting a specific result without considering broader evidence

Unfortunately, I see these mistakes play out every day. Here's how you can revamp your approach to data and supercharge your CX strategy:

  • Stop Confusing Correlation with Causation

    • You see your NPS scores go up, and suddenly, you're taking credit for increased revenue. Not so fast. Ask yourself: Are happy customers spending more, or are big spenders just happier?

    • Dig deeper into the relationship between your metrics and business outcomes.

  • Size Matters - In Data, That Is

    • You're eager to act on that exciting new insight from your latest survey. But hold on - how many responses did you actually get? Remember, a handful of vocal customers doesn't represent your entire base.

    • Be critical about your sample sizes before jumping to conclusions.

  • Look Beyond the Easy Numbers

    • CSAT, CES, NPS - they're comfortable, familiar, and oh-so-measurable. But are they telling you the whole story?

    • Challenge yourself to expand your toolkit. How can you capture the nuances of customer journeys? What about those long-term impacts that don't show up in quarterly reports?

  • One Size Doesn't Fit All in CX

    • You've just read about an amazing best practice that transformed a company's customer experience.

    • Before you rush to implement it, ask yourself: Does this actually apply to your unique customer base and business model? Remember, what's revolutionary for one company might be disastrous for another.

  • Don't Let One Data Point Rule Them All

    • That case study with jaw-dropping results is tempting to build your entire strategy around. Resist the urge.

    • Strive for a holistic view of your CX performance. Look at multiple sources, consider long-term trends, and don't ignore data that doesn't fit your narrative.

A few more thoughts:

  • Create a Safe Space for Data Skeptics

    • Your team might be hesitant to question that beautiful dashboard you've created. But you need those diverse perspectives.

    • Foster an environment where challenging data interpretations aren't just allowed—they're encouraged.

  • Get Systematic About Your Data

    • If your data collection feels more like a frantic scavenger hunt than a strategic process, it's time for a change.

    • Develop an ongoing, systematic approach to gathering and analyzing data that aligns with your long-term CX goals.

  • Don't Let Data Drown Out Intuition

    • In your quest to be data-driven, don't forget the value of good old-fashioned customer understanding.

    • Balance those spreadsheets with insights from your frontline employees and your experienced intuition.

By rethinking your relationship with data, you can transform your CX strategy from a metrics reporting exercise into a driver of meaningful, customer-centric business decisions. You'll boost your credibility within your organization and create more impactful and sustainable customer experiences.


CX Growth: Patience and Quality Over Speed

The Pitfalls of Scaling CX Too Fast - with Kathryn Mahdavi, VP of CX at Rinse | Cotera

Why it matters: Maintaining high-quality customer experience becomes challenging as companies grow. Kathryn Mahdavi, VP of CX at Rinse, shares valuable insights on scaling CX without losing the human touch.

The big picture: Mahdavi cautions against rushing to scale CX operations, emphasizing the importance of building a strong foundation before expanding.

Key takeaways for CX professionals scaling their operations:

  • Don't rush to scale: Sometimes, non-scalable solutions provide the best early-stage experience. Be patient and focus on quality before quantity.

  • Push customer insights across the growing organization: As teams expand, actively share feedback to maintain customer focus.

  • Learn from extreme cases, even at scale: Use rare negative experiences to improve overall CX. Don't dismiss outliers as "one-offs" as you grow.

  • Embed customer-centricity in company culture: Ensure leadership prioritizes customer voice as the company expands. Make "customer as North Star" a core value.

  • Balance data and intuition: Use data-driven decisions when possible, but trust your gut in the early stages. Don't let a lack of data paralyze decision-making in growing companies.

  • Prioritize based on effort vs. impact as you scale: Focus on low-effort, high-impact improvements. When addressing issues, consider retention impact.

  • Approach AI implementation cautiously: While AI can help scale operations, ensure it doesn't diminish the human touch. Maintain focus on solving root problems, not just handling symptoms.

Between the lines: Mahdavi's approach emphasizes maintaining a personal, high-quality CX even as a company grows and faces pressure to scale quickly.

The bottom line: Scaling CX requires a delicate balance between efficiency and maintaining a customer-centric approach. By following these principles, companies can grow without sacrificing the quality of their customer experience.


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Unleash the Potential of Your Organization

MRI Benchmark

Organizational Capability Building (1)

Why it matters: The MRI Benchmark, from Australia’s MarketCulture, helps organizations assess and improve their customer-centric behaviors, boosting performance in key areas.

The Who behind the scenes: Dr. Chris L. Brown is a keynote speaker, author and CEO of MarketCulture a firm that specializes in working with companies to create customer-obsessed cultures. He is the co-author of the award-winning book The Customer Culture Imperative.

The big picture: This platform aims to use employee insights to uncover obstacles and enhance organizational performance, with a focus on customer satisfaction.

Transform your organization's approach to customer experience with the MRI Benchmark, a revolutionary tool designed to bridge the gap between employee engagement and customer satisfaction. This powerful platform offers:

  1. 360° Organizational Insight: Harness the power of continuous employee feedback to gain a comprehensive view of your company's strengths and areas for improvement.

  2. Customer-Centricity Boost: Embed customer-focused behaviors throughout your organization, creating a culture where every employee contributes to exceptional customer experiences.

  3. Performance Amplification: Drive improvements in critical business areas, including customer satisfaction, innovation, and profitability, through data-driven insights and targeted action plans.

  4. Battle-Tested Methodology: Benefit from a globally proven approach that has helped organizations outperform their competitors in key metrics.

  5. Risk-Free Trial: Experience the potential of the MRI Benchmark firsthand with our no-strings-attached free access - no credit card required.

Don't just measure customer satisfaction - cultivate it from within. The MRI Benchmark empowers you to create a thriving, customer-centric organization that stands out in today's competitive landscape. Start your journey to excellence today and see how the MRI Benchmark can revolutionize your approach to customer experience.

Between the lines: The MRI Benchmark draws a parallel with medical MRIs, suggesting it provides an "inside look" at organizational health.

The bottom line: For CX professionals, this tool could help align employee insights with customer satisfaction goals, potentially driving long-term business success.


Netflix's CX Playbook

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