Report: The State of Customer Experience Management, 2014

1404_TheStateOfCX2014_COVERWe just published a Temkin Group report, The State of CX Management, 2014. It examines the CX efforts within more than 200 large companies. Here’s the executive summary:

We surveyed more than 200 large companies and found an abundance of Customer Experience (CX) ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Using Temkin Group’s CX competency assessment, we found that only 10% of companies have reached the highest two levels of customer experience, although this does represent a slight increase from last year. Most firms struggle most to master Employee Engagement and Compelling Brand Values. When compared with CX laggards, CX leaders have stronger financial results, enjoy better CX leadership, and implement more successful employee engagement efforts. Executives in companies with stronger CX competencies also tend to focus more on delighting customers and less on cutting costs.

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The percentage of large organizations that have reached the two highest levels of customer experience maturity has grown from 6% in 2013 to 10% this year. During the same period, the percentage of companies in the lowest level of maturity has dropped from 40% to 31%.

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Here are some additional findings from the research:

  • Companies with good or very good ratings in Purposeful Leadership rose from 39% to 45%, the largest improvement for any customer experience competency.
  • The research also revealed a significant focus on improvement. While only 6% of companies believe that their organization currently delivers industry-leading customer experience, 58% have a goal to be an industry-leader within three years.
  • Sixty-five percent of companies have a senior executive in charge of customer experience.
  • More than half of companies have at least six full-time customer experience professionals.
  • Almost two-thirds of respondents rate customer experience with phone agent as good or very good, the highest rated interaction. Less than 30% rate mobile phone and cross-channel experiences at that level.
  • The top obstacle to customer experience is the same as it has been for four years, “other competing priorities.”
  • We compared companies that have strong customer experience maturity with those that are weaker and found that customer experience leaders have better financial results, have more senior executive commitment, and focus more on their organization’s culture.

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The bottom line: Most companies are in early stages of CX maturity, but are getting better

Happy People Are More Productive Employees

I recently read an interesting article in Fast Company called Happy Workers Are More Productive: Science Proves It which discusses a UK study of 713 people. The findings make sense and match what we’ve seen, so I decided to do an analysis with our datasets.

Happiness is an element of our Temkin Well-Being Index, so we have a lot of data on it. I dug into our Q3 2013 Temkin Group Consumer Benchmark Study to examine the connection between happiness and productivity for more than 5,000 U.S. consumers. To identify “happy people” we selected the full-time employees who said that they are “always” or “almost” always happy. Our analysis compares those people to other full-time employees who report that they are less frequently happy. As you can see in the chart below:

  • Happy people go out of their way more for their employers
  • Happy employees try harder
  • Happy people take less sick time

1404_HappinessVsProductivityThe bottom line: Hire happy people and keep them happy!

 

 

Report: Employee Engagement Benchmark Study, 2014

1403_EEBenchmarkStudy14_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2014. This is the third year that we’ve published the benchmark of U.S. employees. (Take a look at our Employee Engagement Resource Page).

Here’s the executive summary:

We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees, and we found that employee engagement has decreased over last year. As highly engaged employees try harder, recommend the company, help others, and take less sick time, this trend should be troubling for companies. However, employee engagement levels vary across different organizations, industries, and individuals. Companies that outperform their peers in financial performance and customer experience enjoy a considerably more engaged work force. Our research also shows that the real estate sector has the most engaged employees of any industry, while public administration has the fewest.  Additionally, we found that highly engaged employees tend to be frontline employees, high-income earners, and male. Given the significant value of engaged employees, we recommend that companies improve this area by using our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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Here’s what we found when we examined year-over-year results for the Temkin Employee Engagement Index:

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Here are some other findings from the research:

  • When compared with disengaged employees, highly engaged employees are more than three times as likely to do something good for their employer even if it’s not expected of them, almost three times as likely to make a recommendation about an improvement at work, more than 2.5 times as likely to stay late at work if something needs to be done, and more than two times as likely to help someone else at work.
  • Companies that have significantly better customer experience than their peers have almost 2.5 times the percentage of highly or moderately engaged compared with companies with customer experience that lags their competitors.
  • Companies that have significantly better financial performance than their peers have more than 1.5 times the percentage of highly or moderately engaged compared with companies with financial performance that lags their competitors.
  • Temkin Group found the largest decline in engagement with the youngest group of employees in the study, those between 18 and 24 years old.
  • About 60% of employees in companies with 100 employees or less are moderately or highly engaged compared with only 49% of employees at companies with more than 10,000 employees.
  • We examined employee engagement across 14 industries. At the high-end, 72% of employees in the real estate, rental and leasing industry are moderately or highly engaged. At the bottom of the list, 44% of employees in public administration are moderately or highly engaged.
  • Fifty-nine percent of employees that always interact with customers are at least moderately engaged while only 42% of employees that never interact with customers are equally engaged.
  • Nearly 80% of executives are at least moderately engaged, compared with only 46% of individual contributors.
  • Across all age groups except for those older than 64, males are equally or more engaged than females. The largest gender gap is with 25- to 34-year-olds.

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The bottom line: Improving employee engagement remains a key opportunity for organizations

Customer Experience Leadership Requires Engaged Employees

One of the Six Laws of Customer Experience is “Unengaged employees don’t create engaged customers.” That’s why Employee Engagement is one of Temkin Group’s four customer experience core competencies. To help make this point very clear, I tapped into the data from our upcoming report, Employee Engagement Benchmark Study, 2014 (see last year’s report).

As you can see in the following chart with data from more than 5,000 full time employees in the U.S., customer experience leaders have significantly more engaged employees than do customer experience laggards. When compared with companies that have CX worse than their competitors, companies with significantly better CX have 3.5 times as many highly engaged employees and less than 1/4 as many disengaged employees.

1402_CXvsEEThe bottom line: To sustain great CX, you must have engaged employees.

Report: Introducing Employee-Engaging Transformation

1402_EET_COVERWe just published a Temkin Group report, Introducing Employee-Engaging Transformation. This is a must-read for anyone who is trying to drive sustainable change across their organization. Here’s the executive summary:

Organizations have ambitious goals for improving their customer experience (CX). But CX change isn’t easy; it requires significant transformation across almost every aspect of operations. Therefore, given the effort required, it’s no surprise that Temkin Group research shows that less than half of large organizations rate their CX improvement efforts as effective. Our research into how large organizations successfully change uncovered a core insight: CX change must be focused on changing the way employees do their every-day jobs. We have developed an approach to CX change that we call Employee-Engaging Transformation (EET), which we define as, “Aligning employee attitudes and behaviors with the organization’s desire to change.” There are five practices required to succeed at EET: Vision Translation, Persistent Leadership, Activated Middle Management, Grassroots Mobilization, and Captivating Communications. This research shares examples of these practices in action from over a dozen large organizations, including Adobe, MetLife, Oklahoma City Thunder, Oracle, Prime Therapeutics, and Rackspace. To assess your own organization’s effectiveness in these five practices, use Temkin Group’s Employee-Engaging Transformation Assessment.

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Based on our research, we developed an approach to CX change that we call Employee-Engaging Transformation (EET). We define EET as:

Aligning employee attitudes and behaviors with the organization’s desire to change.

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EET represents a significant shift from how most organizations currently approach their change initiatives. To succeed with EET, organizations must master five practices:

  • Vision Translation: Connect Employees with the Vision. The organization clearly defines and conveys not only what the future state is, but why moving away from the current state is imperative for the organization, its employees, and its customers.
  • Persistent Leadership: Attack Ongoing Obstacles. Leaders realize that change is a long-term journey and commit to working together until the organization has fully embedded the transformation into its systems and processes.
  • Activated Middle Management: Enlist Key Influencers. Middle managers are invested in the transformation and understand their unique role in supporting their employees’ change journeys.
  • Grassroots Mobilization: Empower Employees to Change. Frontline employees operate in an environment where they help to shape and are enabled to deliver the change.
  • Captivating Communications: Share Impactful, Informative Messages. The organization shares information about the change through a variety of means that balance both the practical and the inspirational elements for each target audience.

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The bottom line: Transformation requires employees to change what they do day-to-day

Compensation Doesn’t Drive Employee Engagement

As part of our recent consumer benchmark, we examined a number of attitudes and behaviors of more than 5,000 U.S. employees. One of the things we analyzed is what makes people want to do something good for their company even if it’s not expected of them.

To understand this dynamic, we looked at seven attitudes employees have towards their employers. It turns out that compensation is not the strongest driver of this behavior and it may even be one of the weakest. Instead of trying to gain employees’ engagement solely with pay increases, leaders should look at sharing the gift of intrinsic rewards. As you can see in the figure below:

  • Employees who periodically receive unexpected rewards are the most likely to do something good and unexpected for their employer.
  • Employees who don’t think they are contributing to the success of the company are the least likely to do something good and unexpected for their employer. Employees who feel like they are contributing are 39 points more likely to do something good (the largest gap).
  • Employees who believe that they are compensated fairly are only eight points more likely to do something good than those who do not (the smallest gap).

DoSomethingGoodThe bottom line: Don’t rely on compensation to motivate employees

A&W Canada Sparks Customer Empathy With Real-Time Feedback

I recently had a discussion with Nancy Wuttunee, Senior Director Operating Excellence at A&W Food Services of Canada, about a new feedback system the company is using in its restaurants. The approach is a great example of Guiding with Empathy, one of the principles of People-Centric Experience Design (PCxD).

A&W Canada uses a vendor named Benbria to help it collect feedback via in-store kiosks and a mobile app, displaying the results in real time to employees behind the counter. Customers are asked to give a thumbs-up or thumbs down to three questions:

  • Was your food hot and tasty?
  • Was the service fast and friendly?
  • Was the restaurant clean?

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Wuttunee is very encouraged by the results of the system, which was initially piloted at six company-owned stores in Ottawa, and is now in 50 locations and is being rolled out to all of its 800 restaurants. She told me “We’re calling it “Guest Connect,” and that’s what it’s giving to us. The front room employees already have the conversations, but this lets the kitchen stay focused on the guest experience as well.”

One of the surprises that Wuttunee described is that the stores get a lot more thumbs-up than thumbs-down. Unlike normal feedback sources that are often negatively based, this system captures a lot of positive sentiment. So the company built a culture that welcomes a thumbs-down as an opportunity to use the information for improvement.

Here’s what intrigued me about A&W Canada’s approach to sparking customer empathy:

  • A simple real-time scorecard. Customers are asked to rate three things and the number of thumbs ups and thumbs down are listed on the board for employees to see. There’s no trending or advanced analytics, employees can see how customers are viewing their efforts in an ongoing way­­—and use their judgment in making adjustments. The scoreboard is reset at the beginning of each day.
  • No goals or incentives. Companies often jump at the opportunity to slap incentives on every customer measurement, but A&W Canada has resisted the temptation. There are no specific goals attached to these scores, they are just used for employees to understand the experiences of their customers.
  • Behind the scenes management. The daily data feeds aren’t just forgotten, as management receives daily reports. Data and trends are analyzed to spot potential issues at specific stores or during specific shifts as well as to identify successful stores that might have practices worth sharing.
  • Consistency with the overall culture. Wuttunee explained that, “A&W Canada has a climate in the restaurant where employees feel valued and feel like they are members of a team.” So this program is not an isolated “gimmick” to engage employees. The company has an extensive focus on employee engagement, which is demonstrated in its “Climate Goals,” the following seven behaviors that the company believes are required to achieve its mission:

1) I constantly find ways to create an excellent and delightful experience for each of our guests.
2) We listen to understand each other.
3) I invite and share feedback that enables us to improve.
4) I embrace change and actively support innovation.
5) We work together as partners pursuing common goals and shared success.
6) We use our differences as a source of creativity and learning.
7) I recognize and celebrate our big and small wins.

The bottom line: Help employees hear the voice of your customers

Job Switchers Want A Better Work Environment

Why do employees look for new jobs? We decided to dig into that question in our recent consumer survey. Our study of more than 5,000 U.S. employees showed that two-third of employees are most likely to leave for a higher paycheck. But as you can see in the slide below, those who are actively looking for a job cite different reasons for leaving than those who are not.

We examined two groups of employees, those who are very likely to look for a new job and those who are not very likely to look for a new job. The job seekers are much less likely to say that they are leaving for higher pay. They are also 2.5x more likely to leave because of their work environment and twice as likely to leave for a better boss.

1311_EmployeeReasonsForLeavingThe bottom line: Why are your employees leaving?

PCxD Principle #2: Guide with Empathy

I recently introduced a concept for enlisting the support of employees that uncovers and fulfills the needs of customers that we call People-Centric Experience Design (PCxD), defined as:

Fostering an environment that creates positive, memorable human encounters

PCxD

Principle #2: Guide with Empathy

The Merriam-Webster dictionary defines “empathy” as “the ability to imagine oneself in another’s place and understand the other’s feelings, desires, ideas, and actions.” It turns out that most people have an innate ability to be empathetic. While people may want to help others, they are—as we describe in the Six Laws of Customer Experience—self-centered, naturally viewing the world and making decisions based on their internal perspective.

As employees, people tend to have a unique frame of reference which often includes a deeper than average understanding of their company’s products, organizational structure, and operating processes. If left unchecked, decisions will reflect this frame of reference, leading to products and interactions that often don’t meet the needs of customers who have less interest and less insight into these details of the company.

Organizational dynamics add another barrier to empathy. While a typical customer interaction cuts across many functional groups (a single purchase, for instance, may include contact with decisions by product management, sales, marketing, accounts payable, and legal organizations), companies push employees to stay focused on their functional areas. This myopic view is often reinforced by incentives focused on narrow domains, which creates a chasm between empathy and personal success.

Empathy1

Here are some ideas for guiding with empathy:

  • Refer to customers as people, not data. Your data may show that your average customer is 57% female, have 1.7 children, own 1.3 cars, and lives 62% in the suburbs, but that does not describe any real person. To spark empathy, it’s important to talk about customers in a way that employees can relate to them. Blue Cross Blue Shield of Michigan created three “Design Personas” (Mike, Grace, and Lisa) that provide a “face” to key customer segments. Using a self-guided layout and navigation, employees were taken through these customer persona scenarios, exposed to their pain points, and informed of new and ongoing improvement initiatives.
  • Examine your customer’s journey. To overcome siloed internal perspectives, examine how customers go about their lives and just happen to interact with you. This requires qualitative (often ethnographic) research with your target customers. Companies often use customer journey maps to capture this information. These artifacts can help employees across different roles and functions to understand how customers perceive the company. Genworth Financial reviews customer journey maps as part of its new employee onboarding process.
  • Discuss customer feedback…often. Don’t just examine customer feedback on a monthly or quarterly basis; embed it into your day-to-day activities. Every day, prior to the start of their shift, Apple retail employees get together and review feedback from clients who had recently interacted with the store. This daily huddle keeps customers’ needs top of mind.
  • Spread customers’ actual words. There’s something powerful about hearing what customers are thinking in their own voice. Charles Schwab organizes verbatims by themes and topics and then puts them in the hands of the appropriate people across the company. The result: thousands of people read the verbatims including every branch and call center team. Adobe created a Customer Listening Post, which is an immersive room where executives and employees across the company can listen to live calls and review chats with customers.
  • Assume that customers will be confused. After spending many hours per week talking about their company’s products, processes, and organization during work, employees are naturally prone to expect customers to have that same level of understanding. They don’t. This situation often leads to language and processes that customers find confusing. Since this is a natural bias, it can’t be eliminated. However, it can be neutralized if you get into the habit of asking the question: “Would our target customers fully understand this?” Cigna used this concept to drive its “Words We Use” campaign to eliminate confusing language in all of its customer communications.
  • Raise awareness of customer’s emotional state. You can raise empathy by encouraging employees to think about how they make customers feel. Every time a customer interacts with your company, they have a range of emotional reactions. We’ve identified five distinct emotions: angry, agitated, ambivalent, appreciative, and adoring. Why not have your front line employees keep a checklist for identifying which of the five emotions customers have after an interaction. This can be a valuable coaching tool.
  • Empower random acts of kindness. Create an environment that encourages employees to go out of their way for customers. Ritz-Carlton entrusts every single staff member, without approval from their general manager, to spend up to $2,000 on a guest. Disney trains its staff on a program called Take Five. Cast members (employees) are expected to take five minutes from their normal daily duties to do something special for their guests; they call it being aggressively friendly.

The bottom line: Unleash your employees’ natural empathy

Contact Centers Must Morph into Relationship Hubs

I originally published this content in an article on CMSWire

CallCenterToRelationshipHub2For years, companies have relied on their contact centers to deal with customer interactions—from technical support to requesting medical coverage—but contact centers are on the verge of a major change. Driven by a shift in technology capabilities and consumer behavior, leading companies are refocusing contact centers from handling individual calls to building customer loyalty. These changes will morph contact centers into Relationship Hubs. How will Relationship Hubs be different? They will:

  • Enable journeys, not just handle interactions. Relationship Hubs will assist customers in achieving their goals. If a USAA member calls in to change his address, the reps are trained to understand why and deal with bigger issues. For example, if the call is from a soldier who is about to be deployed, then the rep might check to see if the member has thought about items such as a will, power of attorney and life insurance. The USAA employee might even put a hold on the member’s car insurance, so the soldier doesn’t have to pay for an unused car while he’s deployed.
  • Focus on customer success, not just cut costs. The success metrics for Relationship Hubs will be tied to long-term customer loyalty. Belgacom, a Belgium telecom provider, changed its key call center metric from average handle time to a combination of two metrics—one on first call resolution and the other on likelihood of customers to recommend the company. The new approach reduced the overall volume of calls by 20 percent and also drove higher customer and employee ratings.
  • Have multichannel conversations, not just answer phone calls. Rather than just answering phone calls, Relationship Hubs will handle conversations that cut across all remote channels, including chat, email, Twitter, etc. They will integrate customer management systems to recognize customers across different interactions in different channels over an extended time period. Relationship Hubs will treat customers as if they know them.
  • Blend with self-service, not just deflect calls. Relationship Hubs will offer a seamless connection between self-service and assisted service. Customers can ask questions to virtual agent “Jenn” on Alaska Airline’s website, but even this type of natural language processing powered self-service application can’t deal with every customer situation. When customers get stuck along a self-service path, they will be able to continue with an agent (via chat, call, etc.) who knows exactly what they’ve already tried to do.
  • Route to best agents, not just to available ones. Companies will use analytics to select agents who are most likely to be successful with specific interactions. When a call comes into TriCare Management, its routing system predicts which of its available agents is best suited to meet the needs of that caller. The predictive engine can make decisions to optimize metrics such as customer satisfaction or first call resolution.
  • Predict needs, not just respond to requests. Relationship Hubs will use analytics to better understand customers. Sprint uses a technique called Next Call Prevention. Customer service agents can proactively offer to help with something that customers are likely to contact Sprint about in the near future. The conversation is guided by prompts queued from predictive analytics. If, for instance, someone with an expiring contract calls about a billing, prompts encourage the agent to arrange an upgrade to a new handset.
  • Gain business insight, not just analyze interaction quality. Relationship Hubs will tap into rich customer conversations to identify opportunities to make improvements across the company. For example, Symantec examined issues with the download insurance it sold for Norton Antivirus products that allowed customers to reinstall a purchased product. The analysis showed that the offering generated hundreds of thousands of support calls so the software maker decided to offer re-downloading for free. This change reduced contact rates and improved customer service ratings.
  • Evolve based on feedback, not just survey customers. Relationship Hubs will continuously improve based on customer feedback. Nicor National’s CX team reaches out to customers of its call center within 48 hours of their interaction. The call between the customer and CX team is recorded and can be shared back to employees for coaching/feedback. Listening to the call with the rep provides an opportunity for the CX team to coach account reps based on customer feedback. Members of the CX team initiate “you need to hear this” messages for both positive customer feedback and improvement opportunities.
  • Engage agents, not just hire people. Relationship Hubs will treat agents as assets and will only succeed with highly engaged employees. Contact center supervisors at Hershey Entertainment invest time to sit one-on-one with agents and talk on a weekly basis. The discussion includes some performance review, but most of the dialogue focuses on what’s going on in the employee’s world and what Hershey or the supervisor can do to make the agent’s life any easier. The company’s leadership team recognized the need to rebalance work tasks to ensure that supervisors have time for these discussions.

The bottom line: Morph your contact center into a Relationship Hub.

Safelite Autoglass Technician Demonstrates Practical Wisdom

I was truly inspired by this story from Safelite AutoGlass.

A Safelite technician in Portland, OR was informed that he was going to have a deaf customer on his route the next day. In order to keep the company’s commitment to explaining the installation process, the post-installation safety precautions, and the Safelite warranty to all customers, the technician went out of his way in a very creative fashion. When he got home at night, he called a good friend of his in Vancouver, Washington—just over the river from Portland—who knew sign language. The technician went to his friend’s house and spoke through the installation process and all of the other details. He video recorded his friend signing the entire presentation and then showed it to the deaf customer the next day.

Barry Schwartz, the author of the seminal book The Paradox of Choice, has a great TED talk called Our Loss of Wisdom. In it he discusses what Aritstotle called “practical wisdom,” the combination of moral will and moral skill. The Safelite technician demonstrated practical wisdom by combining the moral will to do what was right for the deaf customer and the moral skill to figure out what “doing right” means.

This type of behavior doesn’t happen enough; our research shows that only 30% of U.S. employees demonstrate practical wisdom. But it’s no surprise that it occurred at Safelite, one of Temkin Group’s 2012 Customer Experience Excellence Award winners. Safelite’s CEO Tom Feeney set a goal in 2008 of doubling the company’s business in four years by 1) putting Safelite’s people first by focusing on talent development and employee engagement and 2) going above and beyond to delight every customer. The strategy succeeded.

The bottom line: Create an environment that fosters practical wisdom.

Epilogue: The technician I discuss above, whose name is Kanyon, left a comment on this post. He was responding to a question about why he recorded the video instead of just writing it all down. Here’s a portion of his response (look at the comments to see it all):

“I could have written everything thing down for my customer. Have you ever seen someone after you spoke to them in their native language? If not try it sometime just learn a little bit that person becomes more relax their walls drop a little and they feel more comfortable. Jeff for me customer service is more then doing a good job. Customer service for me is allowing that person to feel comfortable and safe. Then they can trust me and when I am working on their car/truck they want to trust me.”

CX Tip #2: Make Employee Engagement a Key Metric

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CX Tip #2: Make Employee Engagement a Key Metric
(Employee Engagement)

Since 2007, Bombardier Aerospace’s annual employee engagement and enablement survey has given all employees a voice within the organization. In 2012, 93% of employees completed the survey. Managers are evaluated based on the engagement levels of their employees. To create an environment that ensures performance, every leader has an annual target for employee engagement. Click for more info

See full list of CX Tips

CX Tip #3: Regularly Refresh Your Brand Promises

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CX Tip #3: Regularly Refresh Your Brand Promises
(Compelling Brand Values)

Starbucks CEO Howard Shultz once said “Customers must recognize that you stand for something.” While most organizations start with a clear brand promise, the focus on short term goals can easily push them away from delivering on it. Decisions across an organization may seem reasonable in their immediate context, but they can collectively push a company off its course.

Once the brand promise is lost, organizations will often spiral out of control without the brand as their True North guiding the way. That’s what happened to Starbucks in 2007. Shultz returned to the company in early 2008 to help restore the brand promise. His assessment of the situation: “We lost our way.” The company closed more than 7,000 stores on one day for a three-hour session to re-instill the brand promise with employees.

Rather than waiting for the painful recognition that your organization has lost its way, examine your brand promise at least every two years. Even if nothing changes, the process of reaffirming your brand can be powerful. Make sure that your brand promises are recognizable, believable, compelling, and well understood by both customers and employees.

See full list of CX Tips

CX Tip #5: Lead with “Why” in Communications

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CX Tip #5: Lead with “Why” in Communications
(Purposeful Leadership, Employee Engagement)

How does Herb Kelleher, Founder of Southwest Airlines, describe the company’s secret to success?

“If you create an environment where the people truly participate, you don’t need control. They know what needs to be done and they do it. And the more that people will devote themselves to your cause on a voluntary basis, a willing basis, the fewer hierarchies and control mechanisms you need.”

To elicit this type of connection with employees, leaders must focus their communications on answering a critical question, “why?” Most corporate communications focus on “what” and “how,” telling people what needs to be done and how they should accomplish it. This command and control pattern may elicit short-term compliance, but it’s efficacy decays quickly and it loses value completely when situations change and the “how” no longer applies. Leaders need to elicit buy-in from people by starting communications with “why,” explaining the reason that something is important to the company and to the people who are being asked to do something. To fully empower people, share “why” a goal is important and “what” success looks like and leave it up to the individuals to figure out “how” to make it happen. Click for more info

See full list of CX Tips

CX Tip #7: Motivate Employees with Intrinsic Rewards

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CX Tip #7: Motivate Employees with Intrinsic Rewards
(Employee Engagement)

Companies often try and force employees into doing things by slapping on metrics and measurements. While these types of extrinsic rewards can change some behaviors, they can often cause conflicts and lead to unexpected consequences. When Staples put in place a goal for $200 of add-ons per computer sold, some store employees stopped selling computers to customers who didn’t want to purchase add-ons.  Compare this outcome to inspirational coaching at Sprint, which leads to an environment where employees consistently excel and measure their performance against their best effort and compete with themselves to be their best. It turns out that people tend to be more motivated by intrinsic rewards. To build commitment from employees, stop relying so heavily on extrinsic rewards and focus on providing them with the four key intrinsic rewards: sense of meaningfulness, choice, competence, and progress. These types of rewards build an emotional, instead of a transactional, commitment from employees.

See full list of CX Tips

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