Tag: customer experience

Embracing Strategic Business Outcomes in Digital CX: A New Benchmark for Success in CXM Service Delivery | Blog

As digital CX continues to grow in importance, strategic business outcomes – aimed at establishing a genuine partnership between enterprise and providers based on mutual trust – are set to redefine the measurement of success. Delve into this blog to explore the advantages and potential hurdles of adopting a strategic business outcome in CXM.

The revolutionary integration of digital CX solutions is significantly transforming customer experience service delivery. Already a driving force, this evolution is poised for even greater momentum with the rapid evolution and substantial investments in generative AI. Amid these advancements, achieving outcomes for enterprise businesses has become more crucial than ever.

Adopting strategic business outcomes in CXM operations has emerged as a key differentiator for enterprise success. In today’s dynamic business landscape, staying ahead necessitates not just embracing digital technologies but also cultivating a results-oriented approach, ensuring customer interactions seamlessly translate into tangible business value. This emphasis enables companies to stay competitive, adapt to rapidly changing market dynamics, and foster customer loyalty by consistently delivering meaningful and impactful experiences.

The paradigm shifts toward delivering meaningful and tangible outcomes go beyond the conventional and transactional metrics that have historically dominated the Customer Experience Management (CXM) industry. While benchmarks like Average Handling Time (AHT), First Call Resolution (FCR), and other Service Level Agreements (SLAs) have been integral, the current era demands a recalibration. Metrics now need to go beyond merely gauging efficiency; they must directly contribute to strategic business objectives.

The advent of strategic business outcome metrics in CXM

Strategic business outcome metrics are aimed at accomplishing specific business objectives. This collaboration transcends mere verbal agreements or contractual obligations; instead, it entails establishing a genuine partnership between enterprise and providers characterized by commercial alignment and the pursuit of shared, measurable goals. Strategic business outcome metrics in CXM, marked by measurable impacts on the broader business landscape, are poised to become the new benchmark for a provider’s success.

Strategic business outcomes in CXM can be categorized into four categories: cost optimization, customer excellence, revenue enhancement, and digital transformation as illustrated below:

Picture1

Adopting strategic business outcome metrics requires a nuanced approach that acknowledges the industry-specific nature of certain metrics. Rather than relying on a one-size-fits-all model, CX providers must customize their metrics to align with the unique needs and goals of specific industries.

For example, decreasing the patient dropout rate may emerge as a pivotal metric a provider can achieve in helping accelerate the clinical trial process for a life science enterprise. Conversely, increasing the volume of orders across channels might be essential for optimizing strategies for a retail or Consumer Packaged Goods (CPG) enterprise. In the Banking, Financial Services, and Insurance (BFSI) sector, a targeted metric could be reducing forbearance negotiations or improving loan collection efficiency. This industry-tailored approach ensures the metrics chosen are directly relevant and impactful in addressing each sector’s specific challenges and objectives.

Obstacles to realizing benefits of a strategic business outcome metric approach

Adopting a strategic business outcome metric approach poses challenges, demanding a fundamental shift in measuring and pursuing success. This shift, particularly for large global businesses, demands standardization across all global practices.

Several factors contribute to the difficulty of this transition including:

  • Cultural change: Adopting strategic business outcome metrics in CXM entails a cultural transformation, often necessitating collaboration among multiple teams. Contact centers may not solely influence certain CX metrics. Achieving this shift requires buy-in and commitment from all organizational units, with employees embracing new ways of thinking and working collaboratively
  • Data complexity and attributability: Strategic business outcome metrics often demand a more sophisticated approach to data collection, analysis, and interpretation that might make it difficult to track, validate, and attribute actual benefits
  • Measuring intangible outcomes and baselining challenges: Some strategic business outcomes, such as brand perception or customer loyalty, are inherently intangible and challenging to quantify. Moreover, limited information to establish the baseline metric or outcome might pose a challenge. Developing effective measurement mechanisms for these outcomes can be complex
  • Contractual adjustments: Traditional service contracts may need restructuring to accommodate the shared responsibility model. This could involve renegotiating terms, aligning revenue recognition models, introducing performance-based incentives, and establishing clear expectations for success and failure
  • Regulatory hurdles and billing: Changes or conflicts in tax and compliance rules could potentially impact revenue recognition and billing mechanisms as well as timelines

The success of the strategic business outcome metric approach hinges on establishing a robust collaborative partnership between CX providers and enterprises. Building trust is central to this collaboration. Trust forms the basis for open communication, a willingness to share insights, and a joint commitment to success, which can serve as the bedrock for achieving shared objectives and driving meaningful differentiation within the market.

This approach involves equally sharing responsibilities and benefits for business success and failure. Both providers and enterprises must acknowledge that success/failure is a collective effort. Enterprises should acknowledge the role of providers in contributing to meeting agreed-upon targets, including fairly sharing commercial benefits, whether through performance-based incentives, revenue-sharing models, or other mutually agreed-upon mechanisms. On the flip side, in cases where strategic business outcome metrics are not met, providers should also be open to bearing the burden.

If you have questions or would like to discuss strategic business outcome metrics, frameworks, strategies, and best practices, reach out to Chhandak Biswas, [email protected], or Uday Gupta, [email protected].

Explore the anticipated shifts in sourcing expenditure and strategies, and the digital CX services expected to be in demand in our report: Customer Experience Management (CXM) Services CXO Insights: Key Issues Report 2024.

Discover insights into CXM outsourcing during early maturity stages and strategies for the effective selection of suitable outsourcing partners in our webinar, Navigating the CXM Outsourcing Landscape: A Comprehensive Guide for First-time Outsourcers.

Navigating the CXM Outsourcing Landscape: A Comprehensive Guide for First-time Outsourcers | Webinar

on-DEMAND WEBINAR

Navigating the CXM Outsourcing Landscape: A Comprehensive Guide for First-time Outsourcers

What are the key considerations when choosing a customer experience management (CXM) outsourcing partner for the first time?

Watch this insightful webinar on navigating the outsourcing landscape, led by our experts Divya Baweja, Practice Director, and David Rickard, Partner. They discussed the potential benefits and risks of outsourcing the CXM function and outlined best practices and key considerations to make when taking this step.

Attendees gained insights into CXM outsourcing during early maturity stages and came away with strategies for the effective selection of suitable outsourcing partners from our leading experts in this field.

Additionally, service providers received an overview addressing the unique requirements of first-time outsourcers.

What questions did the webinar answer for the participants?

  • What are the benefits and risks associated with outsourcing in the early maturity or first-time stages?
  • What are the best practices for selecting the right outsourcing partner?
  • How can a service provider address the unique demands of first-time outsourcers?

Who should attend?

  • Customer experience leaders
  • Chief customer officers
  • SVP Customer Experience
  • Heads of Outsourcing
  • Procurement Managers
  • Contact center leaders
Baweja Divya
Practice Director
Rickard David
Partner
Kumar Santhosh
Aniruddha edited

Implementing Gen AI for CXM: The Data Challenge | LinkedIn Live

LINKEDIN LIVE

Implementing Gen AI for CXM: The Data Challenge

View the event on LinkedIn, which was delivered live on Wednesday, April 17, 2024.

🚀 Generative AI (gen AI) has the potential to revolutionize customer support, as well as reduce operational costs. However, to leverage gen AI for its maximum capabilities, it will be vital to base AI learnings on excellent quality data that is well managed and controlled.

📣 Watch this LinkedIn Live session with Everest Group’s David Rickard, Partner, and guest David Ilett, Consulting Director from Davies, to explore practical examples of implementing gen AI for customer experience (CX). Learn about the main challenges organizations face with data provision for AI and understand how to plan adequately to avoid the common pitfalls. 📊

During this engaging LinkedIn Live, we discussed:

⭐ The main challenges facing enterprises when deploying gen AI 🌐
⭐ The scale of the data provision challenge 📈
⭐The practical steps that organizations can take to leverage gen AI

 

Meet the Presenters

Rickard David
Partner
Everest Group

Forecasting the Future: Key Trends Reshaping CXM Outsourcing in 2024 | Blog

After a turbulent past year, 2024 holds great promise for CXM outsourcing, with generative AI and other technologies poised to transform contact center operations. Discover five key trends that will impact the CXM industry going forward by reading on, or get in touch.

Amid the tumultuous landscape of 2022-23, the Customer Experience Management (CXM) outsourcing industry faced a barrage of challenges. Economic uncertainties, unfavorable exchange rates, and mounting financial pressures compelled many enterprises to tighten their belts, leading to reduced spending on CXM services. In the face of these adversities, the industry weathered a turbulent period, seeking resilience in the storm.

2024 has ushered in an exciting new chapter of transformation. Several technological advancements are poised to catalyze growth and reshape contact center operations. Generative AI (gen AI) holds the potential to redefine customer service offerings, automate more interactions, enhance agent performance, and provide superior customer experiences.

Advancements in accent neutralization and AI translators are expected to enhance service quality, boost workforce efficiency, and alleviate language barriers. The current surge in investments targeting various delivery geographies aims to unlock untapped talent pools. This trend is accompanied by a pressing need for agent reskilling to match the pace of evolving technologies.

Enterprises are reevaluating vendor management strategies, prioritizing providers with robust capabilities and talent, and focusing on embracing sustainability. This transformative shift is reshaping the CXM landscape and heralding a future defined by resilience and adaptability.

In this rapidly evolving environment, innovation isn’t just an option, but a prerequisite for enterprises and providers to prosper, making 2024 a pivotal year for the CXM industry.

Let’s deep dive into five key trends expected to reshape the CXM industry in the near future:

  1. Gen AI pilots to move to production: 2024 marks a pivotal moment in implementing gen AI pilots, heralding a transformative era in CX delivery. Gen AI is not merely a technological upgrade. It is a catalyst poised to elevate efficiency, redefine agent assistance capabilities, revolutionize voice bots, introduce cutting-edge self-service tools, and fundamentally reshape the overall service delivery landscape. Enterprises are proactively gearing up for the widespread deployment of gen AI across established use cases, strategically positioning themselves to harness its potential within the next two years.
  1. Accent neutralization and AI translation to redefine CX: Beyond the scope of gen AI, innovative technologies like accent-neutralization and AI translation are poised to revolutionize customer interactions. Accent-neutralization facilitates more transparent communication and promotes inclusivity, while AI translation bridges linguistic divides, enabling global interaction. Together, these advancements promise to enrich customer engagement, surpassing conventional limitations. They equip businesses to navigate language challenges, streamline processes, and cut costs significantly. These technologies simplify the complexities of multilingual support, boosting customer satisfaction and loyalty. Ultimately, they empower businesses to provide seamless, effective, and inclusive service worldwide.
  1. Evolving shoring dynamics: We anticipate a significant increase in offshoring and nearshoring activities continuing this year. This surge is propelled by factors such as escalating onshore talent costs, rapid technological advancements, and an increasing need for geographical diversification in response to the growing complexities of the business landscape. Emerging delivery locations in Africa (Ghana, Rwanda, Kenya, Senegal, Burkina Faso, and Morocco), Latin America (Suriname, Argentina, Nicaragua, Uruguay, and Caribbean countries), and Asia Pacific (Malaysia, Taiwan, Sri Lanka, and Indonesia) present compelling options for enterprises aiming to diversify their delivery capabilities and fortify their Business Continuity Planning (BCP) strategies.
  1. Strategic portfolio management: Enterprises will continue refining service provider portfolios through consolidation, rebalancing, or integrating new suppliers. This strategic portfolio management approach will be characterized by its sophistication, considering cost, risk, capabilities, and productivity factors. The overarching objective will be to achieve an optimal balance that enhances operational efficiency and positions enterprises to swiftly adapt to evolving market dynamics and shifting customer expectations. By strategically managing their portfolios, enterprises aim to gain a competitive edge by aligning their service provider relationships with their broader business objectives. This proactive approach will enable them to optimize resource allocation, mitigate risks, and capitalize on emerging opportunities.
  1. Embracing sustainability Initiatives: Sustainability initiatives are poised to play a pivotal role for enterprises and service providers. Enterprises will prioritize partnering with providers actively involved in such initiatives, aligning seamlessly with their organizational goals. By collaborating with these providers, businesses will demonstrate a commitment to ethical and socially responsible practices, contributing to the broader objectives of responsible and sustainable outsourcing.

Impact on the CXM Outsourcing Landscape

The CXM outsourcing landscape stands on the cusp of a transformative era, poised for a revolution fueled by the advent of technology and various strategies. These innovations promise remarkable productivity gains by automating more tasks and elevating customer and agent experience.

These trends signal a gradual departure from human-centric interventions to digitally-led customer experiences. As the industry moves towards a future shaped by AI and sustainability, customer service is expected to increase as a true differentiator between enterprises. The ability to personalize interactions, resolve issues quickly, and demonstrate empathy is expected to be key to success.

To gain more insights into the dynamic CXM outsourcing landscape, evolving customer requirements, and the significant impact of emerging technologies, explore our in-depth report, Strategic Keys: Unlocking the Potential of Customer Experience Management. For questions about the CXM outsourcing industry, contact [email protected] and [email protected]. You can also catch up on the latest insights with our webinar on demand, The Generative AI Advantage in Enterprise CXM Operations.

Gen AI and Retail: How the Industry is Harnessing Disruptive Transformation | In the News

Generative AI (gen AI) is spurring organizations across different sectors to fundamentally reimagine their approach to digital transformation. Retailers are exploring gen AI use cases across a wide range of functions, from new product discovery and personalization to streamlined fulfillment and enhanced services.

Everest Group’s Generative AI in CXM survey report revealed that 55% of enterprises view enabling personalization as a key driver of gen AI adoption, while 16% are investing over US$10 million toward gen AI initiatives in the next 12 to 18 months.

Read more in Total Retail.

How Will Next-gen Technologies Be Financed in CXM Delivery? | LinkedIn Live

LinkedIn Live

How Will Next-gen Technologies Be Financed in CXM Delivery?

View the event on LinkedIn, which was delivered live on Thursday, March 14, 2024.

In 2024, technology will likely be a significant differentiator in customer experience (CX) services, offering overall improved customer experiences and cost rationalization of CX services offered. Forward-thinking enterprises are questioning how new technologies such as generative AI (gen AI) will be commercialized and how it will impact CX services. 🌐

Watch this LinkedIn Live discussion with Everest Group’s David Rickard, Partner, Kunal Verma, Vice President, and Rahul Barwe, Vice President, to learn about emerging technologies’ impact on CX services and how they can be leveraged for commercial gain. 📈🔍

During this engaging LinkedIn Live, we discussed:

✅ The recent technologies being included in CX outsourced deals
✅ The impact of these technologies on pricing models for CX services
✅ How to commercialize Gen AI solutions

Meet the Presenters

Barwe Rahul
Vice President
Everest Group
Rickard David
Partner
Everest Group
Verma Kunal
Vice President​
Everest Group
Aniruddha edited

Leveraging Gen AI to Enhance CXM: From Innovation to Implementation | LinkedIn Live

LINKEDIN LIVE

Leveraging Gen AI to Enhance CXM: From Innovation to Implementation

View the event on LinkedIn, which was delivered live on Thursday, February 29, 2024.

🌐 While we recognize the huge potential of generative AI (gen AI) in enhancing Customer Experience Management (CXM), the questions on everyone’s mind are: How do we make it work in real-world scenarios, and where do we start?

Watch this interactive LinkedIn Live session to hear from Arte Merritt, Founder of Reconify, and Everest Group analysts, Shirley Hung and Sharang Sharma. We explored the roadmap for gen AI implementation, discuss what global businesses are considering in terms of deployment, address challenges, and examine whether companies should take on this journey independently or collaboratively.🚀

During this event, we dove into questions such as:

  • 💡 Where do you start with your gen AI journey for CXM?
  • 💡 What areas should you be looking at immediately for implementation?
  • 💡 How do you co-innovate to minimize risks?

Meet the Presenters

Hung Shirley
Everest Group

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