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

Blog Posts

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

I didn't know about that. Thanks!

Jamison Herrmann

Twitter 'recap' helps you catch up with missed tweets

Read more

😂😂😂😂😂😂😂😂

Max Polding

What it takes to turnaround an iconic Australian brand

Read more

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Its absolute over priced acquisition. The CEO, must be fired for this all cash transaction. Absolutely no justification for prospective P...

about_face

Analysts question long-term play of SAP's acquisition of Qualtrics

Read more

Latest Podcast

More podcasts

Sign in