May 20, 2024 12:46 am
The Essential Role of Customer Science for CIOs

In today’s world, businesses must meet or exceed customer expectations in order to avoid negative impacts. This is because every customer has a platform to share their opinions, and negative feedback can have high costs. For example, on February 21, 2018, Snapchat lost $1.3 billion in market value after a negative tweet from celebrity Kylie Jenner regarding the app’s new layout. In 2016, US companies lost a total of $1.6 trillion due to customers switching to competitors as a result of poor service.

One of the challenges in the journey towards customer science is the presence of paradoxes. Despite the common saying that “The Customer is King”, many organizations lack a designated individual with the authority to ensure that every customer interaction is positive. This raises questions about the roles of emerging positions such as chief customer officer or chief experience officer.

To address this paradox, Glenn Laverty, the former president and CEO of Ricoh Canada, integrated customer experience metrics into every employee’s compensation structure. By tying compensation to customer satisfaction, Laverty was able to instill a culture focused on meeting and exceeding customer expectations. At Boeing, there has been a clear indication that production throughput metrics have taken precedence over safety considerations. Customer science can help organizations create a balanced approach by aligning everyone’s compensation with customer experience metrics.

Claes Fornell, founder of the American Customer Satisfaction Index, has highlighted the data paradox in customer science. Despite organizations collecting more customer data than ever before, there seems to be a disconnect in understanding how to use this data to improve customer satisfaction. As the emphasis shifts towards customer science

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