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PART I
Great Expectations
CHAPTER 1
You’re Digging in the Wrong Place
YOU CAN’T GET THERE FROM HERE

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Intuitively, each of us understands what it means to be disappointed by a poor Customer Experience or delighted by the employee who goes above and beyond the call. Given the potential upside, dumping man-hours and resources into CX seems like the no-brainer of all time. But is it, really? Can you engineer a superlative CX by throwing resources directly at the customer or by demanding that your downtrodden employees deliver service with a smile? Is it that simple?

Corporate leaders certainly seem to think so. One 2014 report forecasts that the market for CX management services and technology will grow from $4.36 billion in 2015 to $10.77 billion by 2020.5 That’s real money. Companies are spending lavishly on comprehensive CX strategies and building or buying high-tech systems in order to mine what they see as untapped veins of growth. And the data insist that this preoccupation with CX is justified: A report by the American Customer Satisfaction Index showed that leaders in customer service outperformed the Dow by 93 percent, the Fortune 500 by 20 percent, and the NASDAQ by a whopping 335 percent.6

However, the methods that many organizations are using to try to duplicate those glowing figures just aren’t delivering. According to The Consumer Conversation report, only 37 percent of businesses surveyed said they were “able to tie customer experience activities to revenue and/or cost savings.”7 That means the majority are, in effect, just spending money and keeping their fingers crossed. Meanwhile, an Accenture report concluded that, despite ambitious plans, about half the surveyed companies’ CX initiatives actually did little or nothing to retain customers or grow global revenues.8

What about outside the traditional corporate world, say, in healthcare? The news there is no better. A survey by PricewaterhouseCoopers of more than 2,300 healthcare patients found that only half were satisfied with their overall experience as healthcare consumers. Ominously (for insurance companies, anyway), many were willing to try nontraditional sources for health insurance, including large retailers (40 percent of respondents) and digital companies like Amazon (37 percent).9

Despite customer satisfaction being rocket fuel for the bottom line, organizations are burning billions in unproductive efforts to create a profit-boosting CX. That’s what we mean by “digging in the wrong place.”

5

RnR Market Research, “Customer Experience Management Market by Touch Points (Company Website, Ranch/Store, Web, and Call Center), by Regions (North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America), by Vertical (IT Communication Service Providers, BFSI, and Others) – Global Forecast to 2020.” Retrieved from http://www.marketsandmarkets.com/PressReleases/customer-experience-management.asp

6

American Customer Satisfaction Index, “Customer Satisfaction Benchmarks.” Retrieved from http://www.theacsi.org/

7

Stefan Tornquist, “The Consumer Conversation,” Econsultancy (April 2014). Retrieved from https://econsultancy.com/reports/the-consumer-conversation/

8

Accenture, “B2B Customer Experience: Start Playing to Win and Stop Playing Not to Lose,” June 12, 2014. Retrieved from https://www.accenture.com/us-en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Strategy_6/Accenture-B2B-Customer-Experience-Start-Playing-Win-Stop-Playing-Not-Lose.pdf

9

Jaime Estupinan, Ashish Kaura, and Keith Fengler, “The Birth of the Healthcare Consumer: Growing Demands for.” Strategy&, October 14, 2014.

The Employee Experience

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