DCX Links | October 6, 2024
From Rethinking CX Management to A Conversation with Your Future You...This Week's DCX Hot Takes!
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Welcome to this week's roundup of customer experience insights!
This week, I've got a bunch of great articles that show how customer experience and leadership are changing in our AI-powered world.
We'll look at how to juggle speed, data, and user experience in product management, and flip the script on leadership by exploring why top CX pros don't always need to manage people. We'll also take a realistic look at how AI might shape CX in 2024 - there's reason to be excited, but also cautious.
For some inspiration, we've got Simon Sinek talking about why consistency matters so much in leadership and CX. We'll also check out some cool 'Future You' AI tech that could totally change how we personalize experiences. And we'll see how Sonos bounced back after an app mishap, recommitting to great CX.
Whether you're a CX expert or just getting started, I hope these stories will get you thinking and maybe spark some new ideas.
Jump in and tell me which one grabs you the most - I'm all ears!
Happy reading!
-Mark
Free Access to this week’s Premium DCX Links Edition is Courtesy of Frost & Sullivan Executive MindXchange
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Here are this week’s must-read links:
Consumer Product Management: Balancing Speed, Data, and User Experience
Rethinking Leadership: Why Great CX Pros Don't Need to Manage People
AI for CX: Cautious Optimism for 2024
Simon Sinek: The Power of Consistency in Leadership and Customer Experience
AI 'Future You' Technology Paves the Way for Hyper-Personalized CX
Sonos Recommits to CX Excellence After App Misstep
Enjoy!
Consumer Product Management: Balancing Speed, Data, and User Experience
Consumer PMs at companies like Instacart navigate a complex landscape of user needs, rapid iteration, and data-driven decision-making.
Wayne Chen, Principal Product Manager at Instacart, shares insights on managing products used by millions daily.
The role requires balancing diverse user needs with speed, precision, and constant iteration.
Why it matters: CX professionals can learn valuable lessons from consumer PM strategies to enhance customer experiences and drive engagement.
User-centric focus: Consumer PMs create products that resonate with broad audiences while addressing individual needs, a key principle in CX.
Rapid feedback and iteration: The fast-paced development cycle allows for quick adjustments based on real-time user feedback.
Data-driven decisions: Extensive use of data and experimentation guides product changes and optimizations.
The four-sided marketplace challenge: Instacart balances the needs of customers, retailers, advertisers, and shoppers, highlighting the importance of considering multiple stakeholders in CX decisions.
Key challenges for consumer PMs (and CX pros):
Prioritizing key user segments without losing sight of the broader audience
Balancing short-term trade-offs with long-term benefits
Interpreting real-time data effectively
Managing public feedback, especially in the social media era
Why it matters for CX: These challenges mirror those faced by CX professionals, offering valuable insights for improving customer experiences across various touchpoints.
Key takeaways for CX professionals:
Embrace data-driven decision-making and continuous experimentation
Develop agility in responding to user feedback and market changes
Balance the needs of multiple stakeholders while prioritizing user experience
Bottom line: Consumer PM strategies offer valuable lessons for CX professionals. By focusing on users, using data to drive decisions, and balancing stakeholder needs, CX teams can create better customer experiences. The key is to stay agile, respond quickly to feedback, and continuously iterate to improve products and services.
Source: What It Takes to Build Products for Millions
Rethinking Leadership: Why Great CX Pros Don't Need to Manage People
Big Thanks to Jeff Matlow, writer of one of Substack’s top newsletters, The Best Leadership Newsletter Ever, for introducing me to Dharmesh Shah, co-founder and CTO of HubSpot. He built a multi-billion dollar company without ever managing a single person.
This challenges the traditional notion that career advancement requires people management skills.
It highlights the possibility of excelling in leadership roles without direct reports.
Why it matters: CX professionals can learn from this approach to create more flexible career paths and maximize individual strengths within their organizations.
Not all great CX experts are natural people managers.
Forcing talented individuals into management roles can lead to decreased productivity and job satisfaction.
Recognizing and valuing non-managerial leadership can improve overall team performance.
The traditional career trajectory often pushes high performers into management roles, regardless of their skills or desires. This can result in:
Losing valuable expertise as individuals move away from their core strengths
Decreased employee satisfaction and productivity
Missed opportunities for innovation and growth
Shah's example demonstrates that leadership is about behavior, not just managing direct reports. CX leaders can apply this principle by:
Creating alternative career paths for top performers
Valuing expertise, influence, and innovation separately from people management skills
Allowing team members to excel in their passions without forcing them into managerial roles
The bottom line: CX organizations can benefit from rethinking leadership structures to maximize individual strengths and create more diverse paths to success.
Source: Managing People Is Hard - Just Ask Dharmesh | The Best Leadership Newsletter Ever
AI for CX: Cautious Optimism for 2024
A new report from Experience Alliance and Dasteel Consulting highlights the growing yet measured adoption of AI in customer experience.
What’s working: AI is driving tangible benefits, with 71% of respondents seeing improved customer insights, 64% reporting cost reductions, and 53% noting better customer engagement.
By the numbers:
29% of organizations use AI moderately in CX programs, but 18% have no plans for it.
The primary benefits cited are improved customer insights (71%), cost reductions (64%), and enhanced engagement (53%).
Industries like healthcare, financial services, and telecommunications lead in AI usage, focusing heavily on data analytics, personalization, and predictive insights.
The concerns: There are serious roadblocks. Inaccurate data (60%), integration challenges (46%), and bias (34%) are major concerns. Governance remains a challenge, with 59% of companies operating without a formal AI strategy, relying on grassroots efforts or siloed projects.
2024 priorities: Most companies (56%) are planning a cautious expansion of AI, prioritizing data analytics (72%) and automation (60%). However, 12% are waiting for top-down guidance to steer their initiatives.
The bottom line: AI's potential in CX is clear, but companies are proceeding carefully. With benefits like cost savings and customer insights already materializing, the next frontier will be solving governance and integration issues.
Related: Dasteel Consulting provides CX assessment & strategy, advisory, AI enablement, and executive coaching services.
"Staying on top of the latest CX trends is tough, especially with how AI is transforming the field. Thankfully, the DCX newsletter does a brilliant job of curating the must-know info.” - Jimmy, CX Leader, Google
New from DCX: A CX Leader’s Guide to Organizational Buy-In
AI Audio Discussion
A CX Leader’s Guide to Organizational Buy-In is your go-to playbook for building a customer-first culture across your entire organization. It’s packed with strategies to get every department—from customer service to sales, product, tech, finance, and HR—on board with customer-centric practices.
This guide shows how aligning team goals with customer needs drives real business success and gives you practical, no-nonsense tips for making it happen. If you’re serious about getting everyone on the same page, this is your roadmap!
Simon Sinek: The Power of Consistency in Leadership and Customer Experience
Simon Sinek shares insights on building strong relationships and fostering a positive culture through consistent, small actions.
Sinek emphasizes the importance of meeting people where they are and allowing them to adapt to new environments at their own pace.
He contrasts intensity (big, easily measured actions) with consistency (small, daily behaviors that compound over time).
Leadership and customer experience are built on "boring, mundane daily little things" that create lasting impact when done consistently.
Why it matters: CX professionals can apply these principles to build stronger customer relationships, improve team dynamics, and create a customer-centric culture that drives long-term loyalty and business growth.
Key takeaways for CX professionals:
Personalize onboarding experiences: Recognize that customers, like new employees, come with varied backgrounds and experiences. Tailor your onboarding process to allow for different adaptation speeds and preferences.
Implement "micro-moments" of customer delight: Focus on creating small, consistent positive interactions throughout the customer journey, rather than relying solely on grand gestures or occasional intense experiences.
Train for everyday empathy: Develop training programs that emphasize daily empathetic behaviors, such as active listening and genuine interest in customer concerns, rather than just scripted responses or occasional customer appreciation events.
Audit and optimize touchpoints: Regularly assess all customer touchpoints, no matter how small, to ensure they contribute positively to the overall experience. This includes everything from email signatures to hold music.
Lead by example in digital interactions: Establish guidelines for digital etiquette in customer interactions, such as giving full attention during video calls or responding promptly to messages, to demonstrate respect and build trust.
The bottom line: By focusing on consistent, small-scale positive actions across all aspects of customer interaction, CX professionals can create a cumulative effect that significantly enhances customer satisfaction, loyalty, and advocacy.
"Love your content and valuable insights into CX and industry trends. Thanks for sharing with us!" - Corey
AI 'Future You' Technology Paves the Way for Hyper-Personalized CX
A team from MIT Media Lab, Harvard University, UCLA, and KASIKORN Labs created an AI system called "Future You" that lets users converse with a virtual version of their 60-year-old self, generated based on their current goals and qualities.
The system uses AI to create a realistic, age-progressed image of the user and generates personalized "future memories" to make the conversation feel authentic.
In a study with 344 participants, brief chats with their AI future self led to significantly decreased anxiety and increased future self-continuity compared to control groups.
Why it matters: This technology could provide CX professionals with innovative ways to help customers envision long-term benefits and overcome present biases when making decisions about products or services.
Increased future self-continuity is linked to better financial decision-making, academic performance, and overall wellbeing.
The intervention's ability to reduce anxiety and increase motivation could be valuable for improving customer interactions and experiences.
Key takeaways for CX professionals:
Consider how visualizing future outcomes might influence customer decision-making in your industry.
Explore ways to incorporate future-oriented thinking into customer interactions and support processes.
Stay informed about AI developments that could enhance personalized customer experiences and long-term engagement.
The bottom line: While still experimental, AI-powered future self interventions show promise for enhancing customer decision-making and emotional experiences. CX leaders should monitor developments in this space for potential applications in personalized guidance and support.
Source: AI simulation gives people a glimpse of their potential future self
Research: https://arxiv.org/pdf/2405.12514
Sonos Recommits to CX Excellence After App Misstep
Audio tech giant Sonos has announced a sweeping set of commitments aimed at rebuilding customer trust following the disastrous rollout of their new app in May.
The details: Sonos announced major initiatives to improve product quality and customer experience following a problematic app release.
The company is implementing seven key commitments to address root causes and rebuild customer trust.
Initiatives include enhanced pre-launch testing, gradual feature rollouts, and the appointment of a Quality Ombudsperson.
Sonos is extending warranties and creating a Customer Advisory Board to strengthen customer relationships.
Sonos executives will forgo bonuses unless customer trust and app quality improve significantly.
Why it matters: This response shows how companies can turn a PR crisis into an opportunity for meaningful change and customer engagement.
The commitments address both immediate concerns and long-term structural issues.
By tying executive compensation to improvements, Sonos signals that this isn't just lip service.
Key takeaways for CX professionals:
Crisis response should include both quick fixes and systemic changes.
Involving customers in the improvement process (e.g., Sonos' new advisory board) can help rebuild trust.
Transparency in the recovery process (like Sonos' public bug tracker) can turn frustrated customers into allies.
The bottom line: Sonos' response offers a blueprint for how companies can turn a CX crisis into an opportunity for improvement and stronger customer relationships.
Source: Recommitting to Quality and Customer Experience
I hope you found this week’s links and commentary useful. If you have suggestions for future DCX Links editions, send me a note.
Thanks for being here. I’ll see you next Sunday at 8:15 am ET.
Please share with others you think would benefit.
Want to become a more influential leader in the CX space before the end of the year?
The "30 Days to Greater Influence," eCourse will show you how. Become the go-to expert colleagues seek out for critical decisions. Get executives to champion your customer-centric initiatives. Leave work each day knowing you've made a real, tangible difference. And more!
SPECIAL FOR DCX READERS: For a limited time, get the best-selling CX course for only $29.99! Normally $99.99. That’s less than $1 per day to elevate your career!
P.S.
In addition to my day job and this newsletter, I want to share some of the exciting content and programs that I have cooked up for your personal and professional growth:
DCX Executive Coaching - 1:1 coaching for customer-obsessed leaders (Mention DCX for 50% off the first three months)
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I hope you find these programs useful. Let me know if you have any questions or need any further assistance.
-Mark
www.marklevy.co
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