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Avoid These 14 CX Misconceptions

by Rick Parrish, Kelly Price, Ryan Hart, Andrew Hogan, TJ Keitt, Faith Adams, Maxie Schmidt-
Subramanian, and Samuel Stern
March 19, 2018
Why Read This Report Key Takeaways

To provide a great customer experience (CX) Common Misconceptions Stunt CX
reliably and efficiently, companies must master Management
all six competencies of CX management (CXM). Mistakes span all six CXM competencies and
However, misconceptions can cause even the start with the belief that CX teams can assess
most experienced CX professionals to stumble CXM on their own.
along the path to CXM maturity. In this report,
Some Misunderstandings Happen At The
we detail the most common misunderstandings
Strategic Level
and explain how CX professionals can get back
The belief that firms should compensate
on track.
employees on a high-level CX metric like Net
Promoter Score is one of several strategic
misconceptions. Companies should recognize
employees for specific customer-centric
behaviors that drive better CX outcomes, rather
than the outcomes themselves.
Other Misunderstandings Are Tactical

CX pros slip up at the tactical level when they
think that user testing alone creates a real
understanding of customers. CX pros should
think of user testing as one piece of a larger
research puzzle and perform an “assumption
dump” exercise before every project.
forrester.com
For Customer Experience Professionals
by Rick Parrish, Kelly Price, Ryan Hart, Andrew Hogan, TJ Keitt, Faith Adams,
Maxie Schmidt-Subramanian, and Samuel Stern
with Harley Manning, Will Willsea, and Shayna Neuburg
March 19, 2018
Table Of Contents Related Research Documents

2 Avoid These Misconceptions As You Pursue The Five Essential Steps To Plan Your CX
CX Management Maturity Transformation
Research Gauge Your CX Management Maturity
Prioritization Predictions 2018: The Crisis Of Trust And How

Smart Brands Will Shape CX In Response
Design
Enablement
Measurement
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For Customer Experience Professionals March 19, 2018
Avoid These Misconceptions As You Pursue CX Management Maturity

To provide great CX reliably and efficiently, companies must master the six competencies of customer
experience management: research, prioritization, design, enablement, measurement, and culture (see
Figure 1). However, common misconceptions can cause even the most experienced CX professionals
to stumble along the path to CXM maturity.
Here are some of the most common misapprehensions we hear from CX professionals — and what
they really need to know:
1. “We don’t need stakeholders’ help to assess our company’s CXM maturity.” CX executives
sometimes allow only their teams to participate in CXM maturity assessments of an entire
organization. These leaders worry that involving employees outside the CX function will cause three
problems. First, that employees who are not CX experts won’t know the “real” answers to maturity
questions. Second, that different answers from employees in various parts of the organization will
muddy the picture of the firm’s CXM maturity. Third, that employees who see the assessment will
expect the company to address gaps and will be disappointed if they don’t see action.
Reality: CX teams must cast a wide net to truly understand the state of their companies’ CXM. CX
pros should survey a wide range of stakeholders, and then look for both trends and gaps across
business units, roles, and levels of seniority. CX teams that do this will discover three things: First,
that the right answer to a CXM question depends on context, like the differences between two
business units. Second, that exposing differences will reveal bright spots and problem areas. Third,
that broad stakeholder involvement will generate excitement for CXM improvements and help break
down the institutional barriers that stymie CX transformations.
2. “We should aim to master all six CXM competencies.” It’s easy for passionate CX professionals
to assume that the more sophisticated the CXM, the better. After all, achieving the highest level of
CXM allows companies to consistently provide exceptional experiences. As one CX professional
told us, “I want [my company] to check all the boxes for CX management so I know we’re doing
everything we need to succeed.”
Reality: Depending on a company’s overall strategy and level of urgency for CX transformation,
top-notch CXM isn’t always necessary for success.1 CX pros should target a level of CXM maturity
based on their company’s mission, vision, and values and how vital CX is to the brand’s ability
to compete for customers.2 Maturing beyond that level wastes resources and reduces the ROI
of CX investments. Companies that don’t need reliably great CX to thrive can settle for simply
establishing each competency without mastering it. This alone will allow them to fix their worst
experiences and avoid creating new ones. In contrast, brands that depend on a differentiated
experience but don’t aspire to be CX leaders can stop when they’ve advanced each competency to
an intermediate level. Only firms for which CX is the bedrock of their existence or potentially critical
for business success need to innovate in each competency.
© 2018 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 2
[email protected] or +1 866-367-7378
FIGURE 1 The Six Competencies Of CX Management
Culture
Research
Measurement
Prioritization
Vision
Enablement Design
Research
The research competency requires companies to understand their customers in depth and
communicate that understanding to stakeholders. CX professionals short-circuit rigorous research
when they say:
3. “We understand our customers because we user test our products and services.” Firms
that equate prototyping and testing with customer understanding research risk creating products
that work well but don’t serve customers’ needs. The team leading one firm’s website redesign
discovered this when it added a feed highlighting friends’ activity. The team tested the design to
ensure that it worked well, but it failed to understand that the feature was useless because users
rarely visited the site and weren’t looking for friends there. The firm’s research lead told us that its
“culture of testing [without deeper customer understanding] was resulting in a mismatch between
user goals and the product approach.”
Reality: CX pros should think of user testing as one piece of a larger research puzzle. Teams
should perform an “assumption dump” exercise before every project, to identify what they think
they know about customers and whether they have evidence for these beliefs. This will help teams
identify where the research process should begin: When there is little evidence of a real customer
need, teams should begin by researching customers’ goals and problems before moving into
solution development and testing. Once teams do have strong evidence of a customer need, they
can start prototyping and testing.3
4. “We can create good personas without knowing what we’ll use them for.” When CX pros
launch persona projects without considering why, their efforts result in personas that might be
interesting but are not suited to any particular purpose. As a result, firms become disillusioned with
personas. As one stakeholder put it: “[Personas] have actually become a way that people don’t
think about our customers in real terms anymore. We now think about [the persona’s] face, but I
don’t think that actually helps you understand what people are doing.”
Reality: CX pros should start by defining the purpose and scope of their persona effort. A macro-
level persona project creates enterprise personas to facilitate widespread alignment around a
firm’s core customers and inform high-level business decisions. A micro-level project generates
personas to guide design decisions for specific products and feature sets. After establishing the
scope, create an action plan for how the persona will drive change. Answer questions like, “Who
will need to use the persona, and how?” and “What existing processes will we inject the personas
into?” When choosing an agency to develop personas, choose a partner that also offers a sound
implementation plan.4
Prioritization
The CX prioritization competency requires firms to focus on what’s most important for their customers’
experience and their own business success. CX professionals lead prioritization efforts astray when
they contend that:
5. “We should prioritize efforts based primarily on complaint volume or intensity.” The loudest
and most frequent complaints are not necessarily the most important. Focusing on them will burn
out a CX team and divert its attention from higher-value customers who might not be as vocal
about their problems. HSBC Canada found that most of the complaints to its call center came
from customers with lower lifetime values and fewer assets under management. In the meantime,
more valuable customers who had problems were suffering in relative silence, so the bank wasn’t
improving their experience.
Reality: CX pros should focus their companies’ resources on improving their most valuable
customers’ most important interactions.5 Improvements to these experiences will boost CX quality
for other customer segments, too. For example, USAA invented the mobile check deposit feature
to solve a key pain point for its most important persona. The feature proved so useful that now
nearly all banks have copied it.
6. “We should start our CXM efforts by establishing the prioritization competency.” When
companies begin their CX transformations, CX pros face a long list of possible projects that they
could tackle — if they had enough resources, which they typically don’t. Firms often assume that
the solution is to quickly establish the prioritization competency to help them focus all their other
CX efforts. Unfortunately, companies that try this approach find it impossible to prioritize effectively
because they lack critical inputs to the prioritization model, like the customer impact and business
impact of proposed initiatives. The reason: These inputs to the prioritization competency are
outputs from other competencies.
Reality: CX pros should establish the research and measurement competencies before focusing
on prioritization. The research competency reveals what’s most important to customers; the
measurement competency shows what’s broken about the current CX and how that has an impact
on business KPIs like revenue per customer. CX pros can use this information to assess the customer
impact of possible CX changes and focus their efforts where they’ll have the greatest effect. For
instance, CA Technologies used customer feedback and deeper research to understand that
technical support was a critical driver of the experience and that the company was slow to respond
to routine technical problems. Armed with this knowledge, the company took on a four-year effort to
reduce the inconsistencies in the support organization by instituting global training programs.
Design
The CX design competency involves defining and refining experiences based on the brand’s vision and
research-based customer understanding. CX pros hinder their ability to design great experiences when
they say that:
7. “We can substitute employees for customers when user testing designs.” Even when
employees are customers of their own companies, they carry knowledge, opinions, and motivations
that taint feedback with an inside-out perspective. For instance, research shows that during
usability testing, employees spend less time on task on competitor sites, and they rate competitor
apps and websites more critically than nonemployee testers.6
Reality: To test experience designs more effectively, CX pros should recruit only nonemployees
who are actual or potential customers of the experience the company is designing. There are many
inexpensive ways to recruit testers, such as internal customer databases and Craigslist.7 When
legal or organizational hurdles make looking outside the company impossible, test with employees
who are either new and have less institutional knowledge or are in roles with no exposure to the
experience the company is testing.
8. “We should design our CX for ease; we don’t need to worry about emotion.” When companies
remove roadblocks and decrease friction, they often eliminate confirmations and information
that create more positive emotional experiences. That’s a problem because our research shows
that emotion is the most important dimension of an experience for most industries.8 Consider
the difference between a one-click purchase of a tube of toothpaste and a similar purchase of
a major appliance. Toothpaste is a simple and familiar product, so customers will feel positive
about an easy order process that saves them time. However, customers buying a dishwasher
may feel uneasy with a one-click process that fails to provide reassurance that they’re choosing a
trustworthy brand that meets their needs from a provider that will stand behind the product.
Reality: To design for emotion, use techniques that go beyond simply understanding pain points
and uncover deeper needs like confidence and security. Then create experiences that elicit
these emotions.9 The Home Depot CMO Kevin Hofmann says: “Lots of things that we sell are
complicated and scary, and oftentimes, just a one- or two- or three-time purchase for a customer
in their lifetime. So [we offer] ratings and reviews, videos, high-fidelity images to make sure that
customers can buy with confidence.”10
Enablement
The enablement competency requires firms to provide employees and partners with the resources
they need to deliver the right experiences. Faced with this daunting task, some CX pros mistakenly
assume that:
9. “We can rely on employees’ common sense to deliver the right experience.” Empowering
workers to do what they think is right is a key to retaining valuable employees.11 However, giving
employees too much latitude will lead to inconsistent experiences. For example, management
consultancy Oliver Wyman notes that retailers that rely on store managers’ discretion to execute
special offers are at the mercy of each individual manager’s skill set. This causes different
performance from location to location.12
Reality: To balance empowerment and structure, CX pros must work with their business colleagues
to establish guardrails around employee decision making.13 For example, Ritz Carlton Hotels
famously allow employees to spend $2,000 per day, per guest to solve customer issues. This
policy empowers employees to solve customer problems in the moment, within a well-defined limit.
To follow Ritz’s example, CX pros should identify moments of truth in the customer journey and
provide employees clear, flexible guidelines on how to react.
10. “We can avoid tackling the root causes of CX problems by treating their symptoms.” It’s
no wonder that CX pros would rather implement surface-level fixes than take on the complex
ecosystems of people, processes, and technologies that lie behind experiences. Lloyds Banking
Group (LBG) told us that in 2014, its CX transformation faced inadequate structures, processes,
and peer alignment throughout the company. LBG tried to sidestep these deep challenges by
focusing on simple fixes, like an iPad app for branch staff. LBG’s CX efforts stalled.14
Reality: CX pros must convince their colleagues that it’s worth the trouble to find and fix deep-
seated impediments to CX improvement. Mapping the CX ecosystem is an essential first step.15
LBG used CX ecosystem mapping to show stakeholders that new policies on product disclosure
and risk, along with better employee training — not a simple iPad app — were the real keys to
improving the in-branch customer experience. Faced with this reality, LBG elected to address the
root causes of the problem and expects to improve in-branch CX while saving £500 million.
Measurement
The measurement competency requires companies to quantify the quality of experiences and their link
to the organization’s overall metrics. CX professionals hamstring their measurement programs when
they believe that:
11. “There is a perfect top-level CX ‘beacon’ metric for our company.” Many CX professionals
waste time trying to find an enterprise-level metric that measures everything about CX in a single
number and is actionable. But the quest for the perfect beacon metric is futile: No metric is perfect;
each has limitations. Net Promoter Score (NPS), the most popular beacon metric, can obscure
situations in which a customer’s experience was negative, but not negative enough to make her
stop recommending an otherwise good company.16 Customer effort score, another popular high-
level metric, measures only the ease of an experience and ignores its emotional dimension.
Reality: Find a beacon metric that is acceptable for your business by answering three
questions: Does the survey question behind the metric make sense for your customers?17 Does
the metric energize your employees to improve CX?18 Is the metric a good leading indicator
for those customer behaviors that drive success in your organization? Then create a system
of leading indicator metrics beneath the beacon that point to key improvements and create
shared accountability for CX. Ingredion chose NPS as its high-level metric, and then created a
measurement framework with operational, perception, and outcome metrics.19 This framework
helps Ingredion cascade its CX vision into the company and drive accountability for employees
working individually and as part of cross-functional CX initiatives.20
12. “If we build dashboards and reports, employees will use them.” Unfortunately, only 19% of
internal stakeholders use insights from voice of the customer (VoC) programs to improve CX.21 In
response, CX pros usually try to create more compelling data by fielding more surveys and creating
new dashboards that push data to recipients.22 But easy access and good data visualization won’t
go far with stakeholders who don’t know the data exists, doubt its importance, or struggle to find
the right data when they need it.23
Reality: To overcome these problems, CX pros should start by uncovering the reasons for
stakeholders’ resistance. Use tools like personas and journey mapping with those internal
customers to understand their business and personal goals, attitudes toward CX metrics, and
decision-making processes. Use these findings to make metrics relevant, specific, easy, and
appealing to stakeholders. The head of the NPS program of Nationale-Nederlanden appealed
to employees’ curiosity to pique interest in NPS insights. When he first introduced the NPS
dashboard, he made it black to stand out from the sea of orange corporate color. Employees who
saw a coworker with a black screen got curious. Access to that dashboard was exclusive — it
required a special code — which drew people in even more.24
Culture
The culture competency requires a business to create a system of shared values and behaviors
that focus employees on delivering great CX. Customer-centric cultures matter because they allow
companies to deliver great experiences by default and resist forces that might degrade the experience.
CX culture transformations stall when CX professionals convince executives that:
13. “We should compensate employees on NPS or another high-level metric.” Recognizing
employees and partners solely for getting a high rating from customers is a trap. When companies
reward survey scores, employees find ways to game the system — like coaching customers on what
scores to give or arguing that bad scores were unfair. When Guitar Center noticed that customer
survey results and comments didn’t match, it had to retool its employee rewards program to stop store
associates from influencing survey results. Similarly, Porsche discovered that its stellar Net Promoter
Score was the result of dealers offering freebies to customers in exchange for higher scores.25
Reality: Companies should recognize employees for specific customer-centric behaviors that drive
better CX outcomes, rather than the outcomes themselves.26 Valuing behaviors helps employees
focus on improving aspects of the experience that they can control, like showing empathy,
practicing active listening, or demonstrating that they value customers’ time. Hertz identifies the
right behaviors to reward by asking customers about specific employee behaviors like courtesy and
speed of service.
14. “A reorganization will fix our company’s culture problems.” In reality, no organizational structure
will cure all CX ills.27 In fact, customer-centric reorganizations often do more harm than good:
According to a Harvard Business Review study, companies’ return on assets suffered for three
years after they reorganized to be customer-centric.28 For example, software and services firm
SunGard suffered an 81% drop in return on assets in the four years following its customer-centric
reorganization in 2002. That kind of short-term pain saps support for customer centricity and builds
enthusiasm for the next reorg, which traps firms in a cycle of repetitive reorganizations that never
achieve their goals.
Reality: CX pros should provide detailed guidance to all employees and partners about what
they can do to contribute to the intended experience. This behavioral guidance should be
specific and role-appropriate, and it should build upon existing examples of positive customer
experiences.29 For example, Quest Diagnostics created a cross-functional core team to define
supporting statements for each of its five guiding principles. The team had representatives from
every functional area, as well as regional operations and corporate locations. The statements it
developed went through a review process, with only critical changes made. The goal was to ensure
that participants saw that the final statements still reflected their original contributions.
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Endnotes
1
For more details on planning the extent of a CX transformation, see the Forrester report “The Five Essential Steps To
Plan Your CX Transformation.”
2
For more information on the three levels of CXM maturity in Forrester’s CXM maturity model, see the Forrester report
“Gauge Your CX Management Maturity.”
3
For a primer on effective customer research, see the Forrester report “The Six Key Steps To Instituting Good
Customer Research.”
4
For more information on developing and using personas, see the Forrester report “Persona Pitfalls: Seven Missteps
And How To Avoid Them.”
5
For best practices on prioritization, check the following report. It also contains a customizable prioritization matrix. See
the Forrester report “Prioritize Your CX Efforts By Three Categories.”
6
Source: Joanne Locascio, Rushil Khurana, Yan He, and Jofish Kaye, “Utilizing Employees as Usability Participants:
Exploring When and When Not to Leverage Your Coworkers,” Association for Computing Machinery Digital Library, pp.
4533-4537.
7
For more information on customer recruitment strategies, see the Forrester report “How To Recruit Customers For
Research.”
8
Emotion has a bigger influence on customers’ loyalty to a brand than the ease or effectiveness of an experience in all
18 industries that we tested across seven global markets. For more details, see the Forrester report “The US Customer
Experience Index, 2017.”
9
Even companies that try to design for emotion rarely tap its full potential. For best practices, see the Forrester report
“Designing For Emotion.”
10
For more details on how The Home Depot and other companies design digital interactions for emotion, see the
Forrester report “Bridge The Gap From CX Strategy To Digital CX.”
11
Feeling empowered to solve problems and challenges is the No. 1 driver of employee loyalty. Source: Forrester Data
Global Business Technographics® Applications And Collaboration Workforce Survey, 2016.
12
Source: “Your Customers Want a Consistent In-Store Experience,” Oliver Wyman (http://www.oliverwyman.com/
content/dam/oliver-wyman/global/en/files/archive/2011/Consistent_In_Store_Experience.pdf).
13
For a road map to establishing CX enablement, see the Forrester report “Five Steps To Enable Customer
Experience Delivery.”
14
For more information on Lloyds Banking Group’s CX transformation, see the Forrester report “Case Study: Lloyds
Banking Group Transforms Through 10 Customer Journeys.”
15
For detailed instructions on CX ecosystem mapping, see the Forrester report “A Step-By-Step Guide To Mapping Your
Customer Experience Ecosystem.”
16
Net Promoter and NPS are registered service marks, and Net Promoter Score is a service mark, of Bain & Company,
Inc., Satmetrix Systems, Inc., and Fred Reichheld.
17
Typical top-line CX metrics rely on a survey question — sometimes several. Answering that survey question is part of
the customer experience. At a minimum, therefore, your survey question must make sense to customers. Customer
satisfaction and effort clear that hurdle easily. NPS sometimes doesn’t. For example, CX professionals in financial
services firms find that customers write in the open comment after an NPS question, “I gave a low score because
I just don’t talk about finances to my friends.” Or CX professionals in nonprofit organizations find that customers
feel ashamed to give a low score on the recommend question for an organization that does so much to cure cancer,
educate children, etc. And there are other situations (limited choice, limited buying decision power, specialty industry)
where the same issue applies. But the question should also make the customer feel good. The NPS question implicitly
asks a customer for a favor: “Would you recommend us?” That can be an awkward way to start a survey.
18
A top-line metric that engages employees is simple to understand and creates a common language that employees
can rally around. And it taps into issues that employees are passionate about.
19
A CX measurement framework needs three types of metrics: interaction, perception, and outcome. Interaction metrics
measure what happens during the interaction. These metrics help to contextualize and operationalize perceptions.
Perception metrics measure how customers feel about what happens and how this affects their overall CX. These
metrics help to assess how well a company delivers against customers’ CX quality expectations. Outcome metrics
measure what customers do as a consequence of the experience. They help tie CX quality perceptions to success
(i.e., ﬁnancials). For more details on the three types of metrics and setting up a systematic CX measurement program,
see the Forrester report “Establish A CX Measurement Program In Seven Steps.”
20
For more details on Ingredion’s CX metrics framework, see the Forrester report “How To Set Employee Goals That
Drive Great CX.”
21
Source: Forrester’s Q4 2016 State Of Customer Experience Programs Online Survey.
22
In a previous study among CX professionals who own or influence VoC programs, 65% want to make reports more
actionable and 53% want to expand the number of people with which they share insights. Source: Forrester’s Q4 2016
State Of Customer Experience Programs Online Survey.
The issue of actionability comes up a lot in discussions with CX professionals. The question of how to make data
more “actionable” is often prompted by feedback from internal stakeholders who — upon seeing a dashboard or
report — don’t know what to pay attention to or how to improve CX. The knee-jerk reaction of many CX pros is to
double down on surveys as a diagnostic instrument — for example, by adding more specific questions to existing
surveys or fielding an ad hoc survey. Unfortunately, this practice takes up a lot of time while not typically improving
guidance to stakeholders. That’s because metrics aren’t inherently actionable. All they can do is tell firms where there
is a problem and give some insight into the nature of the problem. Building on that, CX pros must bring in other data
(e.g., operational data, unstructured feedback, employee feedback) and work with stakeholders to analyze the real
nature of the problem and find a solution.
An added downside of adding surveys and survey questions is that the resulting long and tedious surveys add a
negative endpoint to the experience while adding to the overwhelming landslide of survey questions that appear in
customers’ email inboxes or pop up on their screens.
23
For more information on engaging stakeholders, see the Forrester report “How To Drive Action With Your Voice Of The
Customer Program.”
For the important role of data visualization, see the Forrester report “Improve Your Storytelling With Data Visualization
Best Practices.”
24
For more information about Nationale-Nederlanden’s NPS program and other ideas for earning engagement
from stakeholders, see the Forrester report “Brief: Top 10 Ways To Rally Your Organization Around Customer
Experience Metrics.”
25
Porsche wasn’t even incentivizing NPS at the company level. Local operating groups had focused on NPS to improve
their standing in the head office’s eyes. Source: David Moth, “Porsche’s battle to improve customer service and the
Net Promoter Score,” Econsultancy blog, October 11, 2012 (http://econsultancy.com/us/blog/10860-porsche-s-battle-
to-improve-customer-service-and-the-net-promoter-score).
26
For more advice on recognizing employees for specific behaviors that drive CX, see the Forrester report “Five Key
Steps For Making Your Culture More Customer-Centric.”
27
For an in-depth discussion, see the Forrester report “The Truth About Customer-Centric Org Structures: They’re The
Icing, Not The Cake.”
28
Firms did eventually see improved results from shifting their organizational structures to be customer-centric. But it
was by no means a universal panacea. The competitive positioning of the firms dictated how much competitive benefit
they would realize. Source: Ju-Yeon Lee, Shrihari Sridhar, and Robert W. Palmatier, “Customer-Centric Org Charts
Aren’t Right for Every Company,” Harvard Business Review, July 2015 (https://hbr.org/2015/06/customer-centric-org-
charts-arent-right-for-every-company).
29
For more detailed guidance, see the Forrester report “Remove Barriers And Add Enablers For A Customer-
Centric Culture.”
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Avoid These 14 CX Misconceptions

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Table Of Contents Related Research Documents

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Avoid These Misconceptions As You Pursue CX Management Maturity

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