Overcoming Organizational Paradoxes: How to Drive Customer Satisfaction and Boost Market Value

The Importance of Customer Science for CIOs

In today’s interconnected world, failing to meet or exceed customer expectations can have significant consequences. This is evident in the case of Snapchat losing $1.3 billion in market value in just one day due to a tweeted complaint from Kylie Jenner. Similarly, US companies lost a staggering $1.6 trillion in 2016 due to poor service and customer switching. The power of customer feedback is undeniable, and companies must take it seriously if they want to succeed in this competitive landscape.

One of the paradoxes in customer science is the organizational paradox of not having someone with authority to ensure every interaction meets or exceeds expectations, despite the common saying that “Customer is King.” Glenn Laverty, former president and CEO at Ricoh Canada, addressed this paradox by tying every employee’s compensation to customer experience/satisfaction metrics. This ensured that everyone was accountable for meeting and exceeding customer expectations.

Another paradox in customer science is the data paradox. Despite the vast amount of customer data collected by organizations, they seem to know less about how to satisfy their customers. Claes Fornell, founder of the American Customer Satisfaction Index, highlights this disconnect between data collection and customer satisfaction. To truly understand and meet customer expectations, organizations must address this paradox and make sure their data collection efforts are aligned with their overall goals and objectives.

The importance of measuring and rewarding certain behaviors cannot be overstated when it comes to driving desired outcomes. For example, at Boeing, production throughput compensation metrics were prioritized over safety considerations, leading to unintended consequences. Customer science can help align everyone’s compensation with customer experience metrics in a calibrated and nuanced way, ensuring that everyone is working towards the same goal of providing exceptional service to customers.

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