Build Customer-centric Culture

17
Making Leaders Successful Every Day November 19, 2010 | Updated: November 24, 2010 How To Build A Customer-Centric Culture by Paul Hagen for Customer Experience Professionals

Transcript of Build Customer-centric Culture

Page 1: Build Customer-centric Culture

Making Leaders Successful Every Day

November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Cultureby Paul Hagenfor Customer Experience Professionals

Page 2: Build Customer-centric Culture

© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com.

For Customer Experience Professionals

ExECUTivE SUmmAryA customer-centric culture is a system of shared values and behaviors that focus employee activity on improving the customer experience. Customer experience leaders have three tools they can use to craft a culture that is truly customer-centric: hiring, socialization, and rewards. How leaders apply these tools depends on their organization’s customer experience strategy, which clarifies the type of people they need and the behaviors these employees must exhibit. Forrester created a simple scorecard to help firms assess the maturity of their customer-centric cultures and plan next steps for creating a transformation road map.

TABlE oF CoNTENTSMost Company Cultures Seem Designed To Disappoint Customers

To Deliver A Great Customer Experience, Create A Customer-Centric Culture

Hire People With Aligned values

Socialize Staff To Cement Attitudes

reward Employees To reinforce Customer-Centric Behaviors

Strategy Defines The Kind Of Culture Organizations Want To Create

Grade The maturity of your Customer-Centric Culture

rECommENdATioNS

Start Cultural Transformation At Home . . . With Employee Experience

Supplemental Material

NoTES & rESoUrCESForrester interviewed 12 vendor and user companies, including Adaptive Path, AxA Equitable, Best Buy, City National Bank, HP, KeyBank, lego, maritz research, Southwest Airlines, Td Ameritrade, Time Warner Cable, and W Hotels & resorts.

Related Research Documents“What is The right Customer Experience Strategy?” September 28, 2010

“The State of Customer Experience, 2010” February 19, 2010

“The Customer Experience index, 2010”January 11, 2010

November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Cultureby Paul Hagenwith Harley manning and Jennifer Peterson

2

3

8

12

13

Page 3: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

2

MOST COMPAny CulTuRES SEEM DESiGnED TO DiSAPPOinT CuSTOMERS

Amazon.com’s Jeff Bezos famously said that “brand is what people say about you when you leave the room.”1 Similarly, a culture can be thought of as what your employees do when you are not in the room. That’s important because employees don’t have a customer experience professional nearby to coach them through their day-to-day decisions and actions. And that can spell trouble. In our Q4 2009 survey of 141 customer experience leaders from large North American firms, we found that employees have:

· Inconsistent and fuzzy images of target customers. Only 60% of those surveyed say that their companies have a clearly defined set of target customers. Worse, just 24% say that employees across the company share a consistent and vivid image of target customers (see Figure 1).

· Incomplete understanding of the brand attributes that should drive customer experience. Although 60% of those surveyed say that the attributes of their companies’ brands are well defined, only 41% believe that employees fully understand those key attributes, and just 45% say that the brand drives how their companies design customer experiences.

· No reward for improving customer experience. Although 90% of those surveyed say that customer experience is very important or critical in their company’s strategy, only 31% recognize or reward employees for improving the experience.

· Poor executive role models. Just more than 50% of those surveyed say that senior executives regularly communicate the importance of serving target customers. That may stem from the fact that a mere 40% of our panel’s executives regularly interact with customers.

Page 4: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

3

Figure 1 The disconnect Between Companies And Employees

Source: Forrester Research, Inc.57930

Employees fully understand key attributes

60%

24%

60%

41%

45%

90%

31%

53%

40%

Company has a clearly definedset of target customers

Employees share a consistent and vivid image of target customers

Attributes of company’s brandare well defined

Company’s brand drives designsof customer experiences

Employees say customer experience isvery important or critical in their

company’s strategies

Company recognizes or rewardsemployees for improving the experience

Senior executives regularly communicatethe importance of serving target customers

Senior executives regularlyinteract with target customers

Source: Q4 2009 Global Customer Experience Peer Research Panel Survey

Base: 141 North American companies with annual revenues of $500 million or more

Percentage of respondents who agree with the following statements about their companies

TO DElivER A GREAT CuSTOMER ExPERiEnCE, CREATE A CuSTOMER-CEnTRiC CulTuRE

Let’s face it: Culture is one of those squishy topics that people have a hard time getting their heads around in a business context. In order to clarify what’s meant by “culture” and guide our research in this area, Forrester defines a customer-centric culture as:

A system of shared values and behaviors that focus employee activity on improving the customer experience.2

To understand how companies can use culture to create sustainable improvements to customer experience, we investigated models developed by culture change experts.3 We identified three key managerial tools that customer experience leaders can use to embed customer-centric DNA into a company culture (see Figure 2):4

Page 5: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

4

· Hiring. Finding people whose values and personalities match the target culture is often easier than changing the underlying beliefs of current employees. Consider Southwest Airlines employees’ willingness to perform duties that others might find beneath their job titles, a quality that’s fundamental to who these people are. To meet customer expectations of low prices and timely flights, even pilots pitch in to clean planes and help fliers form orderly lines so that they can board quickly.

· Socialization. While the hiring process focuses on finding people with the right personality traits and values, socialization turns its attention to establishing day-to-day behavioral norms. Customer experience leaders embed these norms through a combination of onboarding and training, storytelling, rituals, and routines.

· Rewards. When firms back up their hiring and socialization practices with incentives, they provide ongoing reinforcement of the right employee behaviors. Seasoned customer experience leaders reward behaviors that lead to improvement in metrics like Net Promoter Scores and other measures that strongly correlate to customer experience.

Figure 2 Three Tools Customer Experience leaders Can Use To Shift Culture

Source: Forrester Research, Inc.57930

Hiring

Criteria

Socialization

Onboarding andtraining

Rewards

Informal(collective

celebrations)

Fit StorytellingFormal

(compensationand promotion)

Selectionprocess

Rituals androutines

Hire People With Aligned values

Customer experience leaders “hire the will, train the skill” by embedding desired traits into the criteria for new positions, empowering employees to recruit like-minded individuals, and ensuring that the selection process identifies important aspects of prospects’ personalities.

· Align recruitment criteria with customer-centric values. Hiring programs should send an explicit message to potential employees. Kohl’s builds its “Yes, We Can” customer promise into its job descriptions.5 Southwest Airlines sets expectations and filters out candidates by instilling

Page 6: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

5

a greater sense of purpose into its recruitment materials with slogans like: “Not Just A Career, A Cause” (see Figure 3). Similarly, Apple weeds out potential new hires seeking a stable work environment by alerting them that the work is “part career, part revolution.”

· Empower employees to find like-minded people. W Hotels & Resorts encourages employees to recruit staff from hip local bars and restaurants. They’re instructed to look for people whom they want to work with and who naturally exhibit actions in line with the hotel’s “whatever/whenever” service obsession. USAA actively recruits military veterans and spouses to serve its target market of active-duty and former military personnel and their family members. The firm enlists employees in this effort through a message on its Web site: “[You] know our members better than anyone — and you can share your unique experiences through service to our members.”

· Tune selection processes to test for desired traits. Zappos.com offers new hires up to $3,000 to quit following a training and trial period of four weeks . . . ensuring that new hires thoroughly want to work with the firm.6 Whole Foods Market has team members vote on whether or not to keep new hires at the end of a 30-day to 90-day orientation period. The company says that this process “empowers team members to share in the building of a quality team and strengthens communication.”7 A Best Buy store gives applicants a New York Times crossword puzzle, an Internet connection, and an hour to see how far they get. The goal is to test an applicant’s curiosity and facility to learn, key traits in helping customers who have a broad range of ever-changing questions.

Figure 3 Southwest Airlines Sets Clear Expectations For Job Candidates

Source: Forrester Research, Inc.57930

Source: Southwest Airlines Web site

Page 7: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

6

Socialize Staff To Cement Attitudes

Socialization activities reinforce the day-to-day attitudes and desired behavioral norms of employees. Customer experience leaders can socialize employees through a few mechanisms:

· Provide guideposts with onboarding and training. Time Warner Cable considers its frontline agents and technicians as “brand builders” and emphasizes six key skills when training them: active listening, responding with empathy, authenticity, consultative communications, ownership, and professionalism. Hilton sends new brand management hires to spend a day in a hotel doing everything from cleaning rooms to waiting tables and working the front desk. The objective is to help these employees empathize with frontline employees who actually deliver the experience. Whole Foods Market provides courses like “good organics” and “[our] green mission” that tap into inherent enthusiasm.8

· Create an emotional connection with storytelling. Ritz-Carlton Hotel has a daily line-up used globally across all properties. This 15-minute daily ritual includes a “wow” story during which its

“ladies and gentlemen” (staff) share great things that they have done for guests (see Figure 4). At Umpqua Bank, employees at all locations get together for 5 minutes each day for “motivational moments,” taking turns sharing some lesson they’ve learned that connects back to the customer. Lego sends all staff a monthly email newsletter called “The Voice,” which contains call rates, top issues, and actions the company is taking to rectify issues. The newsletter includes links to actual call recordings so employees can listen to customer voices and hear their emotions.

· Reinforce day-to-day activities with routines and rituals. Disney trains its staff on a program called Take Five, in which “cast members” (employees) are expected to take 5 minutes from their normal daily duties to do something special for guests. For example, when one cast member heard that a guest wasn’t feeling well, she brought chicken soup to her room. Nedbank’s

“AskOnce” policy guarantees that the rep picking up the phone will own an issue from start to finish. Similarly, another bank requires representatives to ask for permission to say “no” rather than asking for permission to say “yes.”

Figure 4 ritz-Carlton Trains Employees To Adopt Behavioral Norms

Source: Forrester Research, Inc.57930

Source: The Ritz-Carlton Hotel Web site

Page 8: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

7

Reward Employees To Reinforce Customer-Centric Behaviors

Formal and informal incentives keep employees focused on what’s important. Rather than focusing on just revenue and profitability measures, seasoned customer experience leaders reward frontline and behind-the-scenes customer-centric behavior when they:

· Recognize and celebrate personal achievement. Starbucks encourages personal recognition with MUG awards, which partners give to employees as a thank you for “moves of uncommon greatness” (see Figure 5).9 City National Bank recognizes one employee story a quarter, has a C-level executive sign the story, and displays it in every break room to ensure that all employees understand that they can do something to help the company goal, regardless of position.

· Compensate and promote based on customer-centric metrics. Allstate ties its 401(k) match to a loyalty index for 80% of company staff, including 100% of its customer-facing employees. At Enterprise Rent-A-Car, nobody can move up to corporate management who hasn’t started on the frontline and sustained above-average Enterprise Service Quality index scores over time. In Walgreens’ “Extra Mile Program,” all of the employees in stores that receive top customer experience scores (across a few metrics) are entered into a contest to win a new car. So far, Walgreens has given away more than 50 cars.

Figure 5 Starbucks recognizes Personal Achievement With Peer-To-Peer Awards

Source: Forrester Research, Inc.57930

Source: Patsy Burnette, “10.7.08,” Blah, Blah, Blog, October 7, 2008 (http://starbucksgirl.wordpress.com/tag/mug-award/)

Page 9: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

8

STRATEGy DEFinES THE KinD OF CulTuRE ORGAnizATiOnS WAnT TO CREATE

Just as customer experience strategies differ — even within the same industry — so should the type of customer-centric culture that a company sets out to create (see Figure 6). For example, with its segmentation strategy focused on serving young, hip travelers, W Hotels & Resorts hires youthful, hip staff, socializing them to act “fun, fresh and flirty” and rewarding them for exceptional customer feedback. Contrast that with the customer-centric culture needed at Omena Hotels, a cost leader that provides no front desk or concierge staff in its completely self-service properties in order to offer low prices. To align customer-centric cultures with customer experience strategies, companies should apply cultural change tools in specific ways.10

· Cost leaders should hire, socialize, and reward process mavens. Companies that seek to squeeze out costs can follow the example of one logistics company that prioritizes operational excellence as a way to deliver value to customers. It focuses employees on fixing internal processes to reduce problems that lead to increased call volume and lines in retail branches. The company is working with its human resources team to screen for operational focus when hiring and to tie performance metrics to compensation.

· Differentiators must tie rewards for product and service innovation to customer metrics. To succeed at introducing innovative products, companies that push the bounds of the possible need to keep customer success top of mind with employees at all levels of the organization. Intuit attaches Net Promoter Score targets to each new product release, understanding that underperformance will result in a profitability hit. Philips’ chief executive officer (CEO) has about 20% of his incentive bonus metrics tied to Net Promoter Scores, and the company’s 20,000-plus manager-level and higher employees have part of their bonuses tied to the scores as well.

· Segmentors should develop support systems for a culture of empathy. Best Buy equips employees with mobile tablet devices loaded with applications such as vendor Web sites, a point-of-sale system, and a repair site. This “smart assistant” helps staff assist customers with a wide range of needs by bundling a broad set of services when selling equipment. It also allows the company to hire floor staff with a high degree of empathy, even if they aren’t technically sophisticated consumer electronics geeks.

Page 10: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

9

Figure 6 Customer-Centric Cultures Should Be Tuned To Support Customer Experience Strategies

Source: Forrester Research, Inc.57930

Company strategy Customer experience strategyCustomer expectation of the brand

Cost leadership Lowest prices Self-service optimization

Differentiation Innovation Proactive guidance

Segmentation Fit Tailored intimacy

Grade The Maturity Of your Customer-Centric Culture

Customer experience leaders can use the scorecard below to rate their companies’ effectiveness at defining a customer-focused culture and using managerial tools to create that culture (see Figure 7). Based on the resulting scores, firms will fall into one of four categories (see Figure 8):

· Maintainers need to continue the momentum. Firms like Southwest Airlines, Zappos.com, and USAA have customer-centricity in their DNA. For these organizations, the challenge is to stay fresh and innovative when engaging employees. Southwest Airlines conducts employee focus groups and biannual employee engagement surveys to understand how marketing campaigns affect employees. The airline also conducts employee brainstorming sessions on ways to better serve customers.

· Strivers must start using available tools. Although these firms have well-defined intentions, they haven’t fully engaged their employees. They should emulate companies like City National Bank, which spent an entire year collecting and refining stories from its staff to refocus the company on its client-centric value proposition. The organization took this course after accelerated growth brought in many new colleagues who didn’t necessarily share or fully appreciate the company’s core values and behaviors.

· Builders need to win executive support. These firms have ad hoc efforts focused on customer experience, but these efforts aren’t reflected in the firms’ vision, strategy, or key metrics. Practitioners in these firms should follow the example of the customer experience leaders at Time Warner Cable who built a grassroots movement to win over executives. They formed a steering committee stacked with like-minded people they called “friendlies,” who

Page 11: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

10

accelerated the case for improving the customer experience across all functional lines. To build companywide support, they orchestrated a series of 10 customer experience sessions over three days that reached 400 business leaders — including behind-the-scenes departments like finance, human resources (HR), and engineering.11

· Complacent companies must lose their false sense of customer loyalty. Companies in markets that have traditionally high switching barriers or few competitors can become complacent about serving customers. However, shifts in competitive forces — often caused by legislative changes like the one that resulted in telephone-number mobility or technology breakthroughs like the creation of electronic books — can suddenly put previously captive customers into play. Customer experience leaders at these firms should use models like the one developed by Walker Information that quantifies and differentiates “truly loyal” customers from those who are “trapped” and “high-risk.”

Page 12: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

11

Figure 7 Grade The maturity of your Company’s Customer-Centric Culture

Source: Forrester Research, Inc.57930

Intentions

Tools

Raw score WeightingWeighted

scoreTotal

possible

Customer-centeredvision, mission, andvalues

Customer experiencestrategy

Customer experience metrics

Hiring

Socializing

Our company’s vision, mission, andvalues clearly prioritize the importanceof customer experience.

Our firm has a clearly defined customerexperience strategy that aligns with thecompany strategy.Our company has identifiedcustomer-centric metrics that correlatewith our key financial performancemetrics.

SubtotalHigh = 36 or more 45

× 3

× 1

× 1

× 1

× 1

× 1

× 1

× 3

× 3

HR is fully engaged in recruitingemployees who share and demonstratecustomer-centric values.Employees are rewarded for recruitingnew employees who demonstrateshared customer-centric values.Selection processes probe forpersonality traits and capabilities thatdemonstrate the rightcustomer-centric values and behaviors.Onboarding and training give all newhires an understanding of how theirrole affects customer experience andexpectations.

Storytelling is widely and effectivelyused to give all employees a deeperunderstanding of how they affect thecustomer experience and what theycan do to improve it.Our company effectively uses routinesand rituals to keep all staff focused onthe daily activities and mindsetsneeded to improve customerexperience.

“Please rate your level of agreement with each statement. Apply weightings to calculate total points.”(Responses on a scale of 1 [strongly disagree] to 5 [strongly agree])

Rewards

Our company effectively uses informal rewards and celebrations to highlight exemplary customer-centric behavior. Our company effectively uses formal incentives (e.g., bonuses) to reward all staff for improvements in key customer experience metrics.

SubtotalHigh = 40 or more 50

× 2

× 2

10

10

5

5

5

5

5

5

15

15

15

Page 13: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

12

Figure 8 Firms’ Cultures Fall into one of Four Categories

Source: Forrester Research, Inc.57930

Strivers Maintainers

High intent score

Low intent score

Low toolsscore

High toolsscore

Complacent Builders

r E C o m m E N d A T i o N S

START CulTuRAl TRAnSFORMATiOn AT HOME . . . WiTH EMPlOyEE ExPERiEnCE

Several of the leaders we spoke to for this report noted that cultural transformation starts with employee engagement. To get your company moving down the path of engaging employees:

· Assess employee engagement before branding customer-centric programs. Companies that go to market with strong promises of customer-centricity should be careful. While the sentiment is right, this approach raises customer expectations. if firms haven’t aligned their cultures to fulfill their promises, employees won’t deliver, and customer satisfaction will plummet. Firms like Human Synergistics, maritz research, and Gallup use attitudinal surveys of employees to assess how well company leadership aligns actions with espoused beliefs. other consulting groups like Walker information, Strativity, Experience Engineering, Accenture, and Capgemini can help firms align brand promises with customer reality through training, development, incentive design, and Hr changes.12

· Focus on back-office employees as much as front-office employees. Customer experience professionals should follow the example of Southwest Airlines, which uses employee focus groups to understand the operational implications of delivering marketing and branding promises. These efforts include not only customer-facing employees but also behind-the-scenes players like baggage handlers. To structure this type of effort, use customer journey maps to document the moments of truth your employees surface, and identify the employees best positioned to deliver at those moments.13

Page 14: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

13

· Consider partnering with social responsibility teams to build a higher purpose. Firms like Southwest Airlines, KeyBank, and lego emphasize the importance of their company’s activities related to good corporate citizenship. This helps engage employees in a sense of higher purpose that can help build teams, lead to better products, and motivate team members.14 lego’s 2009 corporate responsibility report listed more than a half-dozen items that directly relate to customer experience professionals such as Net Promoter Scores and employee satisfaction targets.15 Customer experience leaders at companies with mature corporate responsibility and sustainability programs should seek allies among executives who run those programs to explore forming a common cause.

SuPPlEMEnTAl MATERiAl

Companies And individuals interviewed For This Document

Adaptive Path

Arno Hesse (former executive vice president of retail segments and customer experience at Union Bank)

AXA Equitable

Best Buy

City National Bank

HP

KeyBank

Lego

Maritz Research

Southwest Airlines

TD Ameritrade

Time Warner Cable

W Hotels & Resorts

EnDnOTES1 Source: Dean Crutchfield, “A Brand by Any Other Name,” Adweek, January 25, 2010 (http://www.adweek.

com/aw/content_display/community/columns/other-columns/e3ic65017a815b76bec9c979c1f7858bf9b).

2 Jennifer A. Chatman defines a company culture as “a system of shared values (defining what is important) and norms (defining appropriate attitudes and behaviors).” Source: Jennifer A. Chatman, “Leading by Leveraging Culture,” California Management Review, Summer 2003.

3 Source: Jennifer A. Chatman, “Leading by Leveraging Culture,” California Management Review, Summer 2003; “Enduring Ideas: The 7-S Framework,” McKinsey Quarterly, March 2008 (http://www.mckinseyquarterly.com/Enduring_ideas_The_7-S_Framework_2123); “How do I create a distinctive performance culture?” McKinsey (http://www.mckinsey.com/clientservice/organizationleadership/rocket_creating_performance_culture.pdf); and Edgar H. Schein, The Corporate Culture Survival Guide, Jossey-Bass, 1999 (http://www.amazon.com/Corporate-Culture-Survival-Guide/dp/0787946990). For more information on Forrester’s six C’s of customer-centric DNA, see the September 17, 2008, “The Customer Experience Journey” report.

Page 15: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction ProhibitedNovember 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

14

4 Source: Jennifer Chatman, “Leading by Leveraging Culture,” California Management Review, Summer 2003.

5 This is an excerpt repeated in many of the job announcements: “Exemplifies Kohl’s customer service philosophies of [a] smile . . . [saying] hi and ‘yes we can.’” Source: Kohl’s (http://www.kohls.com/).

6 Source: “Big Think Interview With Tony Hsieh,” Big Think, October 11, 2010 (http://bigthink.com/ideas/24384).

7 Source: Whole Foods Market (http://www.wholefoodsmarket.com/careers/hiringprocess.php).

8 Source: Whole Foods Market (http://www.wholefoodsmarket.com/careers/training.php).

9 Source: Starbucks Recognition (https://www.sbuxrecognition.com/StarbucksRecognitionGuide.htm).

10 Most companies lack a customer experience strategy. As a result, their leaders struggle with decisions about funding and prioritizing projects meant to improve customer experience at the enterprise level. To craft their strategies, customer experience leaders should start with their firms’ overall strategies, which define competitive positions and set customer expectations of the brand. To illustrate this approach, we describe three customer experience strategies that align with Michael Porter’s generic company strategies: 1) self-service optimization for cost leaders; 2) proactive guidance for product or service differentiators; and 3) tailored intimacy for segmentors. See the September 28, 2010, “What Is The Right Customer Experience Strategy?”report.

11 Decision-makers at firms with low Customer Experience Index (CxPi) scores are more likely to say that they have insufficient budgets and lack executive support as well as less likely to say that they are focusing on improving cross-channel interactions. Customer experience leaders can improve their company scores by identifying opportunities for improving cross-channel customer experience by reviewing customer journey maps, creating and managing an enterprise-level portfolio of customer experience projects, and following best practices for winning executive support. See the June 28, 2010, “How Companies Improve Their Customer Experience Index Scores” report.

12 Forrester scanned the market for companies offering enterprise customer experience transformation services and found two types of providers: management consultants and boutiques. All of the 15 vendors we interviewed help clients build an initial customer experience transformation road map. Some can also execute key steps in that road map like employee training, process redesign, and IT systems implementation (although capabilities in this area vary widely). To help select the right partner, customer experience professionals should start by creating a shopping list that defines the types of help they are likely to need and the level of commitment they are willing to make. See the October 21, 2010, “Market Overview: Enterprise Customer Experience Transformation Consultants” report.

13 When executed well, customer journey maps can help customer experience professionals plan improvement projects and communicate with employees across their organizations. Unfortunately, journey maps often fall short due to missing content, overwhelming detail, and poor visual design. Based on Forrester’s existing research, our analysis of current customer journey maps, and the input of leading practitioners, we developed a simple methodology to assess the effectiveness of journey map deliverables. To get immediate value from this assessment, customer experience professionals should have key stakeholders take the test,

Page 16: Build Customer-centric Culture

© 2010, Forrester research, inc. reproduction Prohibited November 19, 2010 | Updated: November 24, 2010

How To Build A Customer-Centric Culture For Customer Experience Professionals

15

compare their results, and discuss improvements that will make journey maps more effective in driving customer-centricity. See the October 15, 2010, “Assess The Effectiveness Of Your Customer Journey Map” report.

14 Author Dan Pink echoes this sentiment in his book Drive. Also refer to the overview video of the book’s main concepts at YouTube. Source: Daniel Pink, Drive: The Surprising Truth About What Motivates Us, Riverhead Hardcover, 2009; YouTube (http://www.youtube.com/watch?v=u6XAPnuFjJc).

15 Refer to page 6 of Lego’s “Progress Report 2009” on corporate responsibility. Source: “Progress Report 2009,” Lego (http://cache.lego.com/upload/contentTemplating/AboutUsCorporateResponsibilityContent/otherfiles/download384F882F920FFD7ADCF6974F1D194AB0.pdf).

Page 17: Build Customer-centric Culture

Forrester Research, Inc. (Nasdaq: FORR)

is an independent research company

that provides pragmatic and forward-

thinking advice to global leaders in

business and technology. Forrester

works with professionals in 19 key roles

at major companies providing

proprietary research, customer insight,

consulting, events, and peer-to-peer

executive programs. For more than 27

years, Forrester has been making IT,

marketing, and technology industry

leaders successful every day. For more

information, visit www.forrester.com.

Headquarters

Forrester Research, Inc.

400 Technology Square

Cambridge, MA 02139 USA

Tel: +1 617.613.6000

Fax: +1 617.613.5000

Email: [email protected]

Nasdaq symbol: FORR

www.forrester.com

m a k i n g l e a d e r s S u c c e s s f u l E v e r y d a y

57930

For information on hard-copy or electronic reprints, please contact Client Support

at +1 866.367.7378, +1 617.613.5730, or [email protected].

We offer quantity discounts and special pricing for academic and nonprofit institutions.

For a complete list of worldwide locationsvisit www.forrester.com/about.

Research and Sales Offices

Forrester has research centers and sales offices in more than 27 cities

internationally, including Amsterdam; Cambridge, Mass.; Dallas; Dubai;

Foster City, Calif.; Frankfurt; London; Madrid; Sydney; Tel Aviv; and Toronto.