Are 'people issues' the biggest impediment to CX improvement?by
Organisations must tear down the current walls between business and IT if their investments are to truly enhance the customer experience, a new study has warned.
Organisations must tear down the current walls between business and IT if their investments are to truly enhance the customer experience (CX), a new study has warned.
At the moment, four out of five of the 5,000 business decision-makers questioned by customer engagement software supplier Pegasystems, believe that ‘people issues’ are preventing the two functions working effectively together in order to implement CX initiatives successfully.
These people issues include a lack of suitable skills, an inappropriate organisational structure to facilitate cooperation, and a lack of a CX champion in the boardroom.
The research found that only 35% of companies currently have a C-level sponsor to support their CX projects compared with 36% at director level or below. The involvement of board level sponsors is considered vital in helping to break down barriers between IT and the business and to accelerate change by publicly demonstrating the organisation’s commitment to CX.
Other key challenges include failing to invest in the most appropriate channels and relying on outdated approaches to analysing customer information. For example, although 68% of those surveyed said their channel focus was determined by customer needs, 43% cited email and 42% digital adverts as their top two areas for investment next year – even though both are typically associated with falling response rates.
Moreover, rather than using customer-centric analytics techniques, such as propensity modelling (37%), customer lifetime value projection (34%) and performance simulation (33%), many companies are still spending too much time undertaking customer journey mapping (27%), micro-segmentation (25%) and A/B testing (19%).
Tom Libretto, Pegaysystems’ chief marketing officer, said that simply implementing new technology and expecting it to be a panacea for all an organisation’s problems did not make sense and that a “more holistic, strategic approach is required” instead.
“Organisations need to look at their customers in a completely new way – as individuals that have unique needs and preferences within a very complex, real-time relationship with every brand they interact with,” he said. “They have to earn the right to that relationship every single day, which requires change at the very top of the business, driven by empowered C-level leaders who are willing to re-architect their core business around the customer.”