The Nine Golden Rules of CX Success: Rules 1-3

To achieve extraordinary things, you must be bold. Unlocking success demands a dedication to what I term “The Golden Rules of CX.”

Golden rules represent essential guidelines crucial for achieving success either broadly or within a specific endeavor. This is the first of a three-part series on nine golden rules for CX Success.

The emergence of an experience-driven economy has imposed novel expectations on businesses, marking a significant shift in the customer-business dynamic. Customers, now more empowered than ever, exert pressure on companies with their evolving demands, transforming these pressures into critical factors for business success.

Traditionally, the foundations of business achievement have been product quality and competitive pricing. However, these elements alone no longer guarantee success. Today’s consumers seek prompt responses and personal and transparent interactions, placing a high value on trust as the cornerstone of enduring relationships. They also expect businesses to understand and meet their needs proactively.

This challenging external environment is further compounded by inadequate support from top management. The complexities of corporate culture, characterized by internal politics, compartmentalized operations, and ineffective mobilization efforts, add to the challenges faced by customer experience (CX) professionals.

In the context of the bumps and curves encountered in organizations, we must ask a few very simple questions: What do I do? Where do I start? How do I succeed?

Golden Rule 1: CX Is Everybody’s Business

In most organizations, the task of Customer Experience (CX) falls on the shoulders of a select few. However, the reality is that every individual within the organization contributes to the delivery of outstanding experiences. Customers, even those who don’t engage directly with deeply integrated internal teams, perceive the company as a singular entity or brand. With this understanding, it becomes clear that CX should be a core aspect of the business and a shared responsibility, supported by a culture that places the customer at the center of all activities.

The effect each employee has on CX is undeniable. Take, for example, a billing error made by a clerk. This mistake can shape a customer’s perception of the brand, not just the individual error. By fostering a culture where every team member understands their potential impact on CX—both negative and positive—organizations can rally their workforce to embrace a shared mission for CX excellence, effectively creating a sense of ownership among all.

Embracing the principle that CX is the duty of every individual suggests adopting a radical decentralization strategy. In this approach, CX principles are disseminated throughout every level of the organization, and in the case of B2B companies, this can extend across the entire supply chain.

Reflecting on a practical application of this approach, I recall a 2016 workshop where I, alongside a fellow CX University faculty leader, engaged key stakeholders of a major national utility in a two-day intensive CX training. Participants, some of whom were new to the concepts of CX, left with a commitment to lead and integrate CX within their respective teams. They pledged to promote CX principles within their departments and share their progress across the organization, breaking down silos.

The radical decentralization strategy necessitates aligning organizational strategies with its people’s capabilities, where every point of contact is empowered to act. To support this strategic shift, we developed a concise 25-minute eLearning module, which introduced more than 2500 employees to the company’ CX initiatives, and the behaviors expected of them to deliver on the customer experience promise. The initiative gained further credibility and urgency when it was introduced by the President of the company, signaling a strong commitment from the top echelons of leadership.

The retail sector provides a clear example of the importance of ‘everyone’ in Customer Experience (CX). Consider any retail establishment – department stores, specialty shops, restaurants, hotels, or airlines – and it’s evident that thousands of employees who interact with customers are essential in delivering the promised experiences. These employees are even trained in subtle communication techniques to engage customers better.

Apple trains staff in non-verbal cues

Take Apple as an illustrative case. They train their staff, known as Geniuses, in non-verbal cues that enhance customer interactions. For instance, Geniuses are taught that stroking their chin can give the impression of thoughtful evaluation.

Additionally, unbuttoning a coat can symbolize a readiness to collaborate and ‘get down to business.’ This reflects Apple’s broader commitment to user-friendly and customer-focused product design. Apple aims to captivate customers in their physical stores with products and services tailored to their needs. Their checkout process is designed to be informal and interactive, with Genius Bar staff moving around the store to engage with customers in a more dynamic environment. Apple ensures that its Geniuses are adept at eliciting emotional responses from customers, employing a comprehensive training manual to guide them. This approach exemplifies Apple’s dedication to enhancing its retail experience, positioning it as the industry’s gold standard.

Golden Rule 2: CX Must Sit at The Strategy Table

How often have you heard complaints about the lack of support for CX initiatives? Innovative leaders do not let the realities of the experience economy and the new demands of customers fall on deaf ears. Many will deliberately include the “voice of the customer” in discussions.

The metaphor of the empty chair is impactful. It serves as a reminder for strategists to incorporate the customer’s perspective in their discussions. This empathetic approach ensures that the focus remains on the customer’s needs rather than the company’s needs.

The customer should be at the forefront of strategic conversations, not merely an additional consideration. Adopting an outside-in viewpoint is crucial. Including a company executive who profoundly understands the customer’s perspective can bring an invaluable element to these discussions, an element that might otherwise be confined to the theoretical assumptions of others present.

Customer Experience (CX) is a young discipline, and its recognition in upper management is still developing. Creating senior roles, such as Chief Customer Officer (CCO), is essential for ensuring that CX is present in key decision-making. The recent trend towards establishing roles like Manager/Director of CX, Loyalty Manager, and Insights Manager indicates a positive direction. The significance and influence of these roles will likely accelerate as the financial benefits of CX practices become more apparent and acknowledged across various company sizes. With the support of a CEO, the integration of CX into the core strategy becomes more assured, possibly even with CEOs championing CX themselves. This would be a dream come true for CX evangelists!

Amazon has cultivated a culture intensely focused on the customer 

In meetings with his senior executive team, Jeff Bezos, Amazon’s former CEO, incorporated an empty chair at the table. This symbolic gesture encourages his team to envision a customer occupying the chair, emphasizing the importance of considering the customer’s perspective in their discussions. This practice is a reminder to listen attentively and reflectively to the customer’s voice.

When Amazon acquired Zappos, Bezos committed to preserving Zappos’ distinct culture and integrating its customer-centric ethos into the broader Amazon community. This approach is rooted in the philosophy of starting with the customer’s needs and working backward, which guides Amazon’s strategies and operations.

USAA is renowned for its dedication to customer-centric operations 

The company’s “My Commitment to Service” principles help engage and align their staff with USAA’s mission, customers, and fellow employees. Furthermore, USAA has embraced “going above” to establish a shared understanding and language that defines its organizational culture. CEO Joe Robles’ guiding philosophy epitomizes this commitment: if you take care of your employees, they, in turn, will take care of your customers.

Golden Rule 3: Teach Old Dogs New Tricks

Change is a gradual process, not a singular occurrence. For a customer experience (CX) initiative to have a lasting impact, it’s crucial to focus on habit formation. Encouraging new behaviors through rewards and recognition is essential, as these behaviors must become second nature, ensuring that customer service responses are both immediate and genuine.

Consider everyday habits: looking both ways before crossing the street, shaking hands upon meeting someone, or daily bathing.

These actions have become almost automatic due to their habitual nature. Changing behavior, especially habits, is challenging.

Instead of attempting to “fix” old habits, the emphasis should be on establishing new ones. This involves fostering a culture of innovation, eliminating fear and organizational silos, and placing employees at the heart of CX success. Happy employees are a prerequisite for satisfied customers.

Disney empowers cast members to take charge of the guest experience

Disney empowers its cast members to take charge of the customer experience through extensive interactions with guests and rigorous training. This approach not only anticipates customer needs but also showcases positive behaviors to guests. Similarly, cast members undergo CX behavior training to cultivate these habits, with rewards for those who demonstrate them effectively.

Leadership visibility, achieved through regular visits by senior executives, further strengthens these habits.

Nordstrom’s refund policy sets high standard

Nordstrom sets a high standard in retail by exceeding customer expectations with its “no questions asked” return policy. This policy, including refunds for items Nordstrom does not even sell, like tires, underscores their commitment to customer satisfaction. This approach has placed Nordstrom at the top of customer satisfaction rankings and solidified its reputation for authenticity. Employees embody the “no questions asked” philosophy, making it a core part of their service. In summary, creating a culture that encourages the formation of positive habits among employees is key to sustaining a successful CX initiative.

Companies like Disney and Nordstrom exemplify how empowering employees and prioritizing customer satisfaction can lead to a habit of excellence in customer experience and service.

The cases of Disney and Nordstrom underscore the importance of nurturing an environment where positive employee habits are promoted and celebrated.

Conclusion

In today’s experience-driven economy, achieving remarkable success requires a bold commitment to the Golden Rules of Customer Experience (CX). These principles highlight that CX is not solely the responsibility of a select few; rather, it is a collective duty that spans all levels of an organization. This holistic approach not only dismantles internal silos but also unites the entire workforce around a shared mission of delivering exceptional customer experiences.

Integrating CX into strategic discussions is essential for contemporary businesses. Organizations must adopt an outside-in perspective, allowing customer needs and preferences to guide their decisions. The establishment of senior CX roles, such as Chief Customer Officer, underscores the increasing acknowledgment of CX’s strategic significance.

For CX initiatives to make a lasting impact, organizations must focus on cultivating new habits that enhance positive customer interactions. This involves promoting innovative behaviors, rewarding excellence, and empowering employees to take ownership of the customer experience. Companies like Disney and Nordstrom showcase how a culture dedicated to habit formation and employee empowerment can lead to exceptional CX. By embedding these habits into their operations, businesses can ensure that their CX efforts are not merely temporary fixes but ingrained practices that contribute to long-term success.

Embracing these Golden Rules of CX will equip companies to thrive in an ever-evolving marketplace, where customer expectations continuously reshape the business landscape.