Gartner report: CX is a people issue

Best tech investments derailed by lack of training or incentives, low morale or commitment, and poor communication of goals

Employee engagement tops the list of major concerns when delivering customer experience improvement projects, according to a new Gartner survey.

The study revealed 86 per cent of CX executives ranked employee engagement as having an equal or greater impact than other factors such as project management and data skills.

"CX is a people issue," said Gartner research vice-president, Olive Huang. "In some instances, the best technology investments have been derailed by employee factors, such as a lack of training or incentives, low morale or commitment, and poor communication of goals."

The Gartner study was conducted in February and March 2018 with 209 respondents in the UK, US, Australia, Singapore, India, Canada and New Zealand.

Respondents were from a wide range of industries and company sizes and heavily involved in a CX program, with 71 per cent in a leadership position. One in five report directly to the CEO. Nearly three quarters of organisations surveyed have a dedicated CX team.

Olive Huang
Olive Huang

According to the survey, organisations can consider undertaking hundreds of different potential CX improvement projects, but only a few can be funded.

Survey respondents ranked personalisation, voice of the customer (VoC), metrics and multichannel-related projects as the highest priority activities in 2018.

"The data tells us there is no CX silver bullet," Huang said. "CX leaders face a wide range of choices over project priorities and the mix of technology projects and skills needed to be successful. You need to prioritize investments based on ROI, and benchmark and measure customer experience improvements over time."

In terms of technologies, customer analytics is considered the most critical technology investment for CX improvement projects, the survey said.

Customer analytics covers a range of different possibilities, and organisations attach highest emphasis on customer journey, customer needs and digital marketing analytics when prioritising investments.

But the survey noted the range of technologies being used remains broad, from mature technologies like business process management, voice of customer (VoC) and user experience (UX) design tools and platforms to emerging technologies like artificial intelligence (AI).

Looking ahead, more than one-third of organisations are considering using virtual assistants to improve customer experience. This includes virtual customer assistants (VCAs), chatbots and virtual personal assistants (VPAs). Blockchain is being considered by 15 per cent of organisations and 11 per cent are considering AI.

Meanwhile, customer satisfaction (CSAT) scores remain the most commonly used metric (62 per cent) followed by product/service quality metrics and employee engagement. Customer Effort Score is employed as a CX metric by nearly one-third of surveyed organisations and Net Promoter Score (NPS) by one-quarter of participants.

"The focus on measurement confirms that CX is becoming a cross-organisational, board-level priority," said Huang. "Among the more notable surprises in this survey is the increasing use of newer types of CX metrics like Customer Effort Score. The reality is that organisations require a mix of metrics to measure CX."

The survey also found return on investment (ROI) has become a major focus for enterprises, with 93 per cent measuring ROI on their CX improvement projects.

The realised ROI ranges from benefits for customers (such as increased customer satisfaction, loyalty and advocacy) to benefits for the organisation (such as increased revenue, customer lifetime value, customer retention and profitability).

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith

Behavioural science lead and regional consulting partner, Ogilvy

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in