Customer Experience and Process Management: A Dichotomy?

customerexperienceWe find ourselves at Customer Manufacturing Group at the intersection of two trends that are finally becoming mainstream conversations: customer experience and process management. As we discuss these topics with people, we notice their concern that the two may be mutually exclusive. That is, a belief that efficient process implementation precludes a great customer experience. We disagree.

A process is a set of activities designed to produce a particular outcome. Business processes usually are expected to run continually, and to produce the same outcome predictably. So how does great customer experience come at odds with efficient process? Failure to agree on the outcome the process is supposed to produce.

Despite rhetoric to the contrary, most companies still operate from an inside-out mentality. Further, the people who design the processes seek stability within the process. This occurs for at least two reasons: (1) most people prefer a stable environment, (2) it is easier to make a stable process efficient.

This causes most business processes to be rigid. How often have you heard someone tell you they can’t help you because the process doesn’t let them?

In the world of customer experience you have many variables, not the least of which is simply the variability within each customer. Process experts attempt to create a process that will fit all customers, or more realistically to force all customers to fit the standard process that was created.

And, as we have noted for many years, every process is perfectly constructed to produce the results it does. Some customer-facing processes have the ability to deal with “process exceptions.” That would be customers who don’t “fit” into the mainstream process but are either important enough or loud enough to call for “special” treatment. However, this is akin to the old “rework” processes in manufacturing, which did not help improve the process itself, but simply attempted to mask the root cause. And they are usually more expensive since “rework” is inherently costly.

To create and execute processes that offer a valuable customer experience one must recognize that the processes cannot be rigid or inflexible because the gosh darn customer just won’t cooperate (at least not most of them, most of the time). The key is to create flexible, adaptable processes that can accommodate the needs of your customers.

If you accept the Drucker-ism that the purpose of a business is to create and keep customers, then processes that support that are mandatory. Customer experience is now recognized as a key driver of that ability to create and keep them. Further research[1] has found that companies that provide superior customer experience produce better ROI for their shareholders. So what’s the issue?

Creating flexible and adaptable processes is more expensive than rigid processes. This is true, if for no other reason than because the skills required of the people in the process are greater if the process is flexible and adaptable. And people with more skills generally get paid more. So the idea is to great the so-called “Goldilocks process.” Just flexible and adaptable enough … and no more.

Two key requirements to create the so-called “Goldilocks process” are to (1) understand and agree on the outcome desired … from the customers’ perspective; (2) recognize that you cannot serve everyone with this approach. There must be a focus on attracting and retaining the right customer and having a method for helping the “wrong” customer shop elsewhere. If there aren’t enough “right” customers to achieve your business goals, that is a strategy problem not a process problem.

Describing the solution is simple: create customer-centric processes that are effective at delivering the customer experience promised. Once you have done that well, you can look to make the processes more efficient … as long as they continue to be effective.

Mitch

[1] 2015 Watermark Consulting Study

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