Better decision-making: 4th step required to radically rebuild CX

Better decision-making: 4th step required to radically rebuild CX

This is the fourth in a set of five articles about the steps needed to radically rebuild CX. The reason the five steps are necessary is that we have collectively failed to deliver on our 20-year-old cross-industry promise to deliver better outcomes using a variety of techniques that all rely on surveys and their outcomes. We have not delivered. We have to put that behind us and radically rebuild something new. Among other things, the first three steps taught us that modern advanced analytics are critical to our success. However, we can only be successful if the new tools drive us to make better decisions.

What do we mean by “better decisions”?

Let me start by saying what I mean by “us”. In these rather unpredictable economic times, both boards and executive teams need reliable predictive data on which to base their strategic decisions. For such decisions to be effectively communicated, the data should be the same as that used by the various teams within your company, primarily meaning operational data.

Despite the healthy overall employment situation in the USA, we are seeing lots of companies making substantial layoffs. As a general statement, layoffs in large companies are being driven by rising interest rates. Companies have borrowed lots of money at low to zero interest rates. They have also indicated certain future earnings ranges to investors that they find themselves unable to deliver without reducing costs.

Cost reductions are going to happen, whether rational, or irrational

All too often, boards and executive teams have no data that will allow them to determine which reductions will negatively impact customers and which will not. Guess what? They then say to themselves, ”Well, I was hired for my extensive experience. I will just trust my intuition at this point.” (I would love to be able to add a canned laughter sound at this point.) Disaster often follows; disaster for customers in particular.

With our CX thinking of the last 20 years, we have excellent past-facing data for a sample of our customers. With all due respect, no board or executive leadership team is going to use such data to plan cost reductions. We have to do better, and we can indeed do better.

Modern AI tools predict customer futures surprisingly accurately

What sets AI apart from other data analysis tools, and surveys in particular, is its ability to not only provide insight into past customer behavior, but to also predict and optimize for the future. This predictive capability is what makes AI such a game-changer for CX professionals and allows our companies to make strategic decisions that drive both growth and cost savings.

The most effective tools use operational data from existing IT systems to analyze and predict customer futures. It's relatively easy to understand which operational items impact customers and which are reasonable targets for cost reduction efforts. And since the data comes from the very systems your teams are using, and is expressed in their own metrics, communication becomes much easier.

Conclusion

In conclusion, the ability of AI to predict and optimize for the future is what sets it apart from other data analysis tools and makes it a game-changer for CX professionals. By leveraging advanced analytics and AI, CX professionals can make informed decisions about customer needs and preferences, anticipate and address potential issues, and drive growth and cost savings for their organizations. By investing in their personal development and working closely with their IT and data science teams, CX professionals can stay ahead of the curve and continue to make strategic decisions that drive customer satisfaction and business success.

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There are podcasts, and then there is The CX Iconoclast Podcast

If you’re frustrated with the stagnant state of CX today, you’ve found your podcast. On The CX Iconoclast, we interview leaders from outside of CX, learning from them while we challenge the status quo. Listen and subscribe here:?https://lnkd.in/gHQwZjaz

We launched the podcast last week with three thought-provoking episodes and you’ll find a new episode in your feed every two weeks. The four that are already live are discussions between our CEO Richard Owen and:

  1. Erik Brynjolfsson, Stanford professor, Director of the Stanford Digital Economy Lab, on augmenting CX and decision-making with AI.
  2. Andy Lark, CMO of Dubber and a powerhouse speaker and author, on why you should NOT orient CX around “customer love.”
  3. Tom Monahan, President and CEO at DeVry University and long-time CEO at CEB, on how these days, most company value derives from the customer experience.
  4. Angela Vargo, VP of Marketing, Communication, and Product Experience for Breeze Airways

Subscribe to get even more thought-provoking interviews in your podcast feed every two weeks. The people already lined up or in production include:

And of course, there will be many more!

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Notes

OCX Cognition predicts customer futures. Our breakthrough SaaS solution, Spectrum AI, lets enterprises transform what’s possible in customer experience. Reduce your customer risk, break down silos, and drive speedy action – when you can see what’s coming, you can change the outcome. Building on more that 15 years of CX-focused expertise, we’ve harnessed today’s advances in AI, elastic computing, and data science to deliver on the promise of customer-driven financial results. Learn more at?www.ocxcognition.com.

Maurice FitzGerald is a retired VP of Customer Experience for HP's $4 billion software business and was previously VP of Strategy and Customer Experience as well as Chief of Staff for HP in EMEA. He and his brother Peter, an Oxford D.Phil in Cognitive Psychology, have written three books on customer experience strategy and NPS, and a fourth book that focuses on Peter's cartoon illustrations for the first three. All are available from Amazon.

The author can be reached here on LinkedIn or [email protected]. Please let me know what you think and what sort of content you would like to see here.

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