Making the Pivot: The New Playing Field of Customer Experience Management by mThink, June 28, 2007 The very best athletes shift the momentum of the game at critical moments, and as spectators this pivot can take our breath away. Nearly any sports fan can recall a game-changing play that enabled the team to take the upper hand and demoralize the competition. The very best athletes shift the momentum of the game at critical moments, and as spectators this pivot can take our breath away. Nearly any sports fan can recall a game-changing play that enabled the team to take the upper hand and demoralize the competition. Businesses today need to be equally agile when managing their customer relationships. They must be able “to turn on a dime” to capture new markets and break away from the competition. To attract and retain customers, high-performance organizations are moving from a transactional view of their customer to one that measures the value of their relationship as the sum of each and every experience. Those experiences are defined by an increasingly complex set of interactions. And the interactions that make up today’s experiences cut across the enterprise and have varying degrees of significance. But making the pivot and successfully connecting with your customers can be intimidating. Companies typically offer numerous products and services via many channels and with multiple partners, thereby making the prospect of planning, designing and executing effective customer experiences daunting. While companies must acknowledge the importance of the experience when managing the customer relationships, strategic and operational changes are also required to complete the pivot. The fact is that companies are at different stages of maturity when it comes to designing and deploying satisfying customer experiences. But regardless of where they are in the process, the bar representing customer expectations has been raised, and the pace of change often exceeds a company’s ability to respond. Moreover, an organization must look across industries to understand the types of services their customers are accustomed to, which they will also be expected to deliver. Perhaps the most important hurdle to clear, however, is the one a company sets for itself – its brand promise. Failing to live up to a brand expectation can damage a company’s shareholder value as it creates a gap between what customers expect and what they deliver. As the gap widens, customer frustration takes over and results in disloyalty and churn. Curing this ailment requires a customer-centric approach, including developing market focus and positioning, defining distinctive capabilities and enabling a performance anatomy. High-performance businesses have remarkable clarity when it comes to setting strategic direction, especially regarding big decisions. They always seem to be in the right place at the right time. This occurs as a result of a company’s market focus and positioning. They know where and how to compete when they set their business strategy. They also invest in distinctive capabilities which inherently provide direct value to the customer. They design product functions, features and services with the customer experience in mind. Often this means working across the enterprise in addition to multiple channels and business partners. In this context, a sound performance anatomy within the organization and flawless execution are key factors for success. A corporation’s “culture” must breed a mind-set that creating positive customer experiences is the responsibility of all employees, especially those on the front line. Equally important is having the commitment to follow through when times get tough. This means outperforming the competition, which always requires having an effective coach to call the right plays. Naming the right coach in today’s environment is an emerging dilemma requiring attention. Companies have wrestled with similar questions before. Some companies will conclude that they need a customer advocate and change agent in the boardroom – especially if the transformation to customer-centricity is a longterm one. In some cases this responsibility can be filled by a traditional line of business player; in other instances a “chief customer officer” may be the answer. Whatever decision companies make regarding who should lead the charge, the fact is that making the pivot to this new CRM mind-set is critical and urgent. Delivering the customer interactions that produce optimal experiences to produce long-term relationships is the new mission of CRM executives. Achieving high performance in any industry will depend on the ability to bring all the dimensions of a company together to deliver satisfying outcomes. Filed under: Article, CRM and CIS, CRM Project, Customer Experience, Customer Intelligence, Knowledge