New Research Digs Into Industries And Consumer Feedback Patterns

The XM Institute is kicking off the year with a research bang.

In a previous post, I mentioned two reports from late last year that show the business value of CX, The ROI of CX and What Consumers Do After a Bad Experience. Since then, we’ve actually published a number of new research reports with an emphasis on industry-specific data. These reports are based on a survey of 10,000 U.S. consumers and examine almost 300 companies over 20 industries.

Enjoy these free reports:

200120_XMIResearch

Industry CX Snapshots

2001_CXRetailIndustryGraphics_v1This series of reports dig into CX data for a number of industries:  AirlineAutoBankingHealth InsuranceHotelInsurance, and Retail.

Each Industry Snapshot looks at how the highlighted industry’s XMI Customer Rating compares to the Ratings of the other 19 industries and examines the connection between a customer’s experience and the likelihood that they will recommend, rebuy from, and trust a company within that industry. These Industry Snapshots also explore the potential cost of delivering poor experiences, the most broken journeys within each industry, and how experience perceptions differ across age groups

How Consumers Give Feedback

Download the free report, Data Snapshot: How Consumers Give Feedback

2001_HowConsumersGiveFeedback_Graphics1Did you ever wonder what channels consumers use to give feedback, and how that differs between good and bad experiences and across age groups? Then this is a great report for you.

We found that people are more likely to talk about bad experiences than good experiences. When consumers do tell someone about an experience, only one-fifth of consumers provide that feedback directly to the company. We also looked at how consumer behavior differs across age groups.

Six Types Of Experience Data (X-Data)

One of the key building blocks of Experience Management (XM) is X-data, which helps establish an understanding of how people think, feel, and behave. In almost all circumstances, organizations lack the X-data they truly need. So how should organizations go about instrumenting their operations to collect the right data?

To identify the required X-data, it’s important to first understand how data flows from people’s experiences. That’s why you should start with the Human Experience Cycle (HxC). As you can see below, experiences lead to perceptions, attitudes, and behaviors.

1903_HumanExperienceCycle2

Using the HxC model, we examined the components of many XM programs and have identified six distinct types of X-data:

  1. Experience Expectations. How people think and feel about a future interaction with an organization, which can be collected on a regular cycle or periodically (e.g., whether a customer expects a product to be hard to use or believes they can accomplish a service interaction online).
  2. Interaction Perceptions. Feedback on a specific interaction, which can be tracked continuously or periodically (e.g., feedback after an online purchase or after an employee training course).
  3. Journey Perceptions. Feedback on collection of activities around a goal, which can be tracked continuously or periodically (e.g., feedback after an airline customer finishes a trip or after an employee completes her on-boarding).
  4. Relationship Attitudes. How people feel about an organization, including plans for future interactions, which can be tracked on a regular cycle or periodically (e.g., NPS or brand tracking study).
  5. Ad-Hoc Diagnostics. How people think or feel about a problem or opportunity, which is collected as needed based on other findings (e.g., pulse employee survey about a leadership issue or qualitative study into why a brand message didn’t work).
  6. Choice Preferences. How people would rank different alternatives, which is collected periodically (e.g., product feature selection or employee benefits optimization).

XM programs need to collect these six types of X-data for all human beings in their ecosystem (e.g., suppliers, employees, customers, prospects, stakeholders, etc.). This effort embodies what we call the “Experience Monitoring” skill within the XM Competency of “Enlighten.”

We’ll use this taxonomy in future posts and research to help organizations assemble the right XM programs. For now, think about where you might collect and how you might use these different types of X-data.

The bottom line: Every organization needs these six types of X-data.

Thankful For A Decade Of Great Experiences

Happy New Year!

Wow, it’s 2020… the start to a new decade. I’m really looking forward to what’s ahead. My previous post discusses how 2020 will be the Year Of Insightful Actions, but I also wanted to zoom out and share a broader perspective.

Appreciating The Past 10 Years

Before focusing on the 2020s, I’d like to pause and express my gratitude for the 2010s. It was a great decade! I’m very thankful for all of the wonderful friends, family, colleagues, and clients that I’ve been privileged to spend time with during the previous 10 years.

It’s been a fantastic decade from a personal standpoint. My kids graduated college and have started their paths towards highly productive careers. My Boston sports teams won many championships, and I was able to attend three Super Bowls. I adopted a healthier lifestyle, with better eating habits and more exercise. I expanded my worldview, traveling to many new countries.

I would never have had such an amazing decade if it weren’t for YOU. If you’re reading this post, then thank you! You’re one of the people who has motivated my work. I’ve always felt that my team’s primary audience are the many people who follow what we write, whether or not we’ve ever had the opportunity to meet or work with you.

And most of all, I’m thankful that I’ve been able to go on my personal and professional journey with my best friend, my wife Karen.

A Decade of Professional Changes

It’s also been a fantastic decade from a professional standpoint, full of interesting shifts and turns. Here are some of the highlights:

  • Forrester Research. I began the 2010’s as a VP and Principal Analyst at Forrester Research, introducing the world to the practice of customer experience. It was a great opportunity, as I built a wide range of new skills over my 12-year stint. In particular, I learned to be a strong researcher, writer, and storyteller, which enabled me to be the most-read analyst for my final 13 quarters at Forrester. This experience also provided me with the platform to establish a large community of people who followed my work.
    • Special thanks to the the many people across Forrester who helped me hone my skills, especially Bill Bluestein (R.I.P.), Bobby Cameron, Chris Charron, George Colony, Waverly Deutsch, Stan Dolberg, Bill Doyle, Harley Manning, John McCarthy, Chris Mines, Mary Modahl, and Ted Schadler.
  • Temkin Group. In April 2010, Karen and I founded Temkin Group. I still remember a meeting with my friends Ingrid Lindberg and Steve LaValle who convinced me not to name the company “CX Institute” (which is where we were heading), but instead to name it “Temkin Group.” It was a great decision. Over the next eight years, we built a fantastic team and worked with an amazing array of clients—all from our basement. Our little company built a large global brand, as our research and content was used by practitioners around the world. We never had to make any sales calls, as we were very lucky to build our business based on our reputation and word of mouth.
    • Special thanks to the Temkin Group employees who joined us on this journey. It started with Andrea Fineman who was brave enough to be the first to join us in the basement, followed by Aimee Lucas, Isabelle Zdatny, Denise Bahil, Julia Jaffe, Jen Rodstrom, Laura Wells, and Maggie Mead. Also, thanks to Mike Flint and the team at Metropolis Creative who built our websites.
  • CXPA. During the Summer of 2010, Karen and I started developing a plan to build a community of CX professionals, along with Andy Freed from Virtual (an association management company). We recruited Jeanne Bliss to co-found what became the Customer Experience Professionals Association (CXPA). And in April 2011 we launched the CXPA. We hired the amazing Lesley Lykins in early 2012 as the CXPA’s Director of Member Engagement, and she became the heart and soul of the community. I had the immense pleasure to chair the CXPA and to shepherd its growth into a thriving 4,000+ member non-profit association. Over those five years we established the CX profession and created many industry-defining things such as CX Day and the first professional CX certification, CCXP.
    • Special thanks to Karen, Andy, Jeanne, Lesley, and the entire staff at Virtual (especially Janice Carroll, Shannon Taylor, and Megan Cannon who managed the relationship). I also want to thank the initial CXPA board members who trusted our vision and helped bring it to life: Brian Andrews, Parrish Arturi, Lior Arussy, James Bampos, Jeanne Bliss, Erica Bullard, Ginger Conlon, Chris Davey, Kim Edmunds, Karyn Furstman, Ian Golding, Dorsey McGlone, Jason Mittelstaedt, and Karl Sharicz.
  • Qualtrics. In October 2018, Qualtrics acquired Temkin Group. While we were happy to keep going as-is with Temkin Group, Karen and I saw that Qualtrics was becoming the dominant market leader and we felt that its XM message aligned directly with our point of view. Joining forces provided us with the opportunity to amplify our impact on the market. So our entire Temkin Group team joined Qualtrics to create the XM Institute. Over the last year we’ve had the opportunity to work with a great team across Qualtrics and deliver new thought leadership around the world (including in-person sessions in Toronto, London, Dubai, Dublin, Madrid, Brussels, Stockholm, Helsinki, Singapore, Sydney, Melbourne, Kuala Lumpur, Paris, Berlin, and Munich).
    • Special thanks to the Qualtrics team that helped complete the acquisition at a very fast pace, especially Austin Bankhead, Cate Isert, Iris Ng, Zig Serafin, Jeff Shaw, Ryan Smith, Tucker Stockman, and John Torrey. And I’m also thankful for the entire XM Institute team, Moira Dorsey, Ben Granger, Aimee Lucas, Maggie Mead, David Segall, Karen Temkin, Laura Wells, and Isabelle Zdatny.
  • SAP. Three weeks after Qualtrics acquired Temkin Group, SAP acquired Qualtrics. Talk about a crazy month. Luckily, I’ve known SAP since my days at Forrester, and Temkin Group had worked with many large enterprise software companies. So we know that world. While it’s been somewhat dizzying to try and respond to requests from across our 100,000 new teammates, SAP provides the XM Institute with an even larger platform to bring XM to the world. Thanks SAP.

I feel great about all of my professional accomplishments over the past decade except for one gap… a book. I started to write one in 2011, but had to put it aside as the CXPA ended up taking up just about all of my time. While I’ve been too busy to get back to it, I’m committed to writing a book at some point during this current decade.

Comparing Three Exciting Decades

I’m even more excited today about the future then I was a decade ago. Over the past 10-years we’ve established the foundation upon which organizations will transform into the future. Here’s how I see the connection between this new decade and the previous two:

  • 2000s: The Decade of Process And Technology. While the phrase “people, process, and technology” has been around for decades, the 2000s were all about enterprise technology and process management (no real focus on people). It was a very internally-focused period. Laws such as Sarbanes–Oxley put pressure on organizations to establish enterprise wide control and visibility. This propelled the importance of CIOs, as they led programs to centralize and rearchitect the core infrastructure within most large organizations. The dominant form of transformation, business process re-engineering, was also very internally and cost focused. At the same time, the Internet started to penetrate technology and process boundaries, with companies enabling customers to start self-serving for simple purchases and a handful of basic service interactions.
  • 2010s: The Decade of Customers And Digital. With customers starting to directly touch enterprise technologies/processes and fueled by momentum from the end of the “Great Recession,” organizations not only acknowledged the value of customers in the 2010s, but they also started to focus much more attention on understanding and catering to their needs (thanks in part to the mainstreaming of academic domains such as neuroscience and behavioral economics). We defined and established customer experience management as both a critical capability and as a thriving profession. Disruptive online businesses such as Amazon, Uber, and Airbnb forced organizations to rethink how they interact with customers. At the same time, the rapid growth of mobile along with Cloud/SaaS models made every interaction—internal and external—fair game for digitizing. This customer/digital movement led to the rise of experience design, mobile-enabled processes, and the shift in customer research from a one-off activity to a more continuous process. At the end of the decade, the CX movement started spreading to other areas, most noticeably employees (which started the rise of XM).
  • 2020s: The Decade of Humanity And Intelligence. During the upcoming decade, we’ll build upon what we’ve learned from customer experience and apply it to every part of an organization. Driven by the momentum from the 2010s along with an emerging view among leading executives that the purpose of a corporation is to serve humanity, we’ll focus more on the needs and feelings of all human beings in our ecosystems (e.g., suppliers, employees, customers, influencers, etc.). Organizations will deploy more advanced and automated analytics on top of their growing digital/mobile infrastructures. This will make it much, much easier to discover and distribute tailored insights from increasingly larger and more diverse datasets. In this environment, organizations will infuse Experience Management—the capability to continuously learn, propagate insights, and rapidly adapt—throughout their entire operating rhythm. Using the distributed insights, enterprises will provide more individualized interactions and actively decentralize more decision-making.

I’m excited about where all of this is heading, and believe that the XM Institute is well positioned to keep helping organizations navigate through the change.

A Look Back At 2010 CX Recommendations

I thought it would be fun to close out this post by sharing content from a 10-year-old post that I wrote to prepare people for the start of the previous decade. It’s pretty cool that the recommendations are still relevant today. So here were my 7 keys to customer experience in 2010:

  • 1) Drop the executive commitment facade. It’s very easy for executives to say “customer experience is important.” But it’s much more difficult for them to dedicate the time and energy required to make it a real priority. So in 2010, executives should either get actively involved in customer experience transformation or drop it from their agendas.
    • Start here: Develop a customer experience dashboard and manage the results with the same energy that you manage financial results.
  • 2) Acknowledge that you don’t know your customers. When market research teams require long lead times and expensive projects to answer questions about customers, too many organizations go without this insight. But the path to customer experience success requires significantly deeper customer insight. So in 2010, companies need to develop voice of the customer programs that provide ongoing and continuous access to customer insights.
    • Start here: Create a voice of the customer program with a cross-functional team that focuses on four “LIRM” components: listening to customers, interpreting the feedback, reacting to the insights, and monitoring results from actions over time.
  • 3) Keep from getting too distracted by social media. Twitter, Facebook and other social media sites may seem sexy, but they aren’t the only channels for customer feedback. Other channels like comments on surveys and calls into the call center can often provide even richer insight. So in 2010, companies need to learn from social media feedback, but not overreact to it.
    • Start here: Treat social media as one of many listening posts in a comprehensive voice of the customer program that examines both structured and unstructured feedback.
  • 4) Stop squeezing the life out of customer service. My research shows that consumers care more about good customer service than they do low prices. It also turns out that many customer service interactions are critical “moments of truth” that drive customer loyalty. But companies often treat customer service an unwanted stepchild; focusing almost exclusively on aggressive cost-cutting. So in 2010, companies need to start viewing customer service as a strategic asset.
    • Start here: Measure customer service organizations based on how effectively they help customers instead of efficiency metrics like average handle times.
  • 5) Restore the purpose in your brand. True brands are more than just color palettes, logos, and marketing slogans, they’re the fabric that aligns all employees with customers in the pursuit of a common cause. They represent a firm’s raison d’être. Unfortunately, many companies have lost this sense of purpose in their brands. So in 2010, companies need to redefine their brand and embed it in the hearts and minds of all employees.
    • Start here: Translate your brand into promises you will make (and keep) with customers across every key touch point.
  • 6) Don’t expect employees to get on board. Employees are often the most critical element of any customer experience effort. But firms can’t just hope that everyone will participate in these change initiatives. So in 2010, companies need to actively focus on engaging employees at every level across the organization in their customer experience efforts.
    • Start here: Communicate (a lot) about “why” customer experience is important and allow employees to participate in defining “how” to make improvements.
  • 7) Translate customer experience into business terms. My research uncovered a strong correlation between customer experience and loyalty. An average $10 billion company can generate $284 million of additional revenues from customer experience improvements. But most companies don’t fully understand the link between customer experience and business results. So in 2010, companies need to identify how customer experience impacts their financial results.
    • Start here: Engage the CFO to develop a model which shows the impact that customer experience has on customer loyalty.

The bottom line: The 2010s were fantastic, but the 2020s will be even better!

2020: The Year of Insightful Actions

As 2019 comes to an end, it’s time to think about what we’ll see next year. I collaborated with our XM Institute faculty (Aimee Lucas, Ben Granger, Isabelle Zdatny, and Moira Dorsey) to pull together a picture of where we think XM will be heading in 2020. As we looked across the different elements we were expecting to see, an overall theme for 2020 emerged… The Year Of Insightful Actions.

Looking Back At 2019

In the Global State of XM research, we found that senior executives around the world recognize the importance of XM. That mindset propelled many companies to deploy components of an overall XM program in 2019. As we found in the State of CX Management where only 6% of large companies have reached the top two levels of maturity, most companies remain in the very early stages of building their XM competencies.

Customer experience (CX) remained the most common area of focus for XM efforts, with employee experience (EX) gaining significant traction.

Few organizations have yet to take an enterprise-wide view of XM, instead they’ve most frequently deployed XM within isolated compartments of their organization. While narrow XM remained the norm, we started to see a few companies take a more holistic view of XM, often starting with an integrated view of CX and EX.

Five Trends In The Year of Insightful Actions

While most XM efforts have focused on isolated data collection and reactions, we expect organizations to become much more intentional about how their efforts drive actions that create value. That’s why we’re calling 2020, The Year of Insightful Actions.

What does this mean? While many XM programs claim to drive action, they don’t treat this effort as a primary objective. We expect this to change. During the upcoming year, organizations will prioritize their XM efforts in areas that directly help their organizations make better decisions and deliver more tailored experiences. In this environment, we expect to see:

  1. The marriage of CX and EX. XM programs will spread into adjacent areas. The most common form of this diffusion will be the an increase in the combination of customer experience (CX) and employee experience (EX) efforts. Why? Because there’s an inextricable link between CX and EX. Insights from customers can target high priority employee improvements, while insights from employees can identify key customer improvements.
  2. The reversal of metrics mania. Many XM programs have built up a slew of measurements, viewing their experience data (X-data) as a source of metrics. As companies pivot more to insightful actions, they’ll cut back on some of those metrics and focus more of their attention on developing insights in specific areas where they see opportunities to improve.
  3. The reorientation to action-first. In early maturity XM programs, there’s often a focus on collecting as much data as possible. The data, along with some insights, is then delivered to different groups. We expect that many organizations will shift this flow. They’ll start by identifying the actions that people make and use that information as requirements for insights, and then focus data collection on fueling those insights.
  4. The creation of a new discipline, IXD. Rather than just distributing data, organizations will more actively design the insights they deliver to specific groups across the organization. We call this Insight Experience Design (IXD). XM teams will use their experience design skills to integrate insights into different teams’ operating processes and decision flows. This process will also require change management to increase data-centric mindsets across their organizations.
  5. The rise of XM-enabled processes. As organizations use XM to power more key decisions, they’ll spot new ways to inject insights into their ongoing operational processes. Leading companies will start redesigning processes like product development and employee promotion cycles to embed XM insights. Look for existing methodologies like Lean and Lean Startup to incorporate XM insights into their methodologies.

Impact Across The XM Operating Framework

This focus on insightful actions in 2020 is merely a step on the path towards increasing XM maturity. As we described in the report, Operationalizing XM, organizations are on a multi-year journey to create the capabilities to continuously learn what people are thinking and feeling, propagate insights across their ecosystem, and rapidly adapt based on the most important findings. To establish these capabilities, companies will continue to expand their XM efforts in 2020 across the three elements of the XM Operating Framework, technology, competency, and culture.

1912_WhatIsXM

Here are some of what we expect to see in 2020:

  • Technology: Within XM, technology plays a very important role. It allows the automation of key activities and it enables strong practices to scale across an organization. In 2020, we expect to see more use of text analytics to tap into rich insights from unstructured data, more predictive analytics to uncover insights from a growing volume of both X-data and operational data (O-data), more instrumentation of growing digital channels, more automated and customized distribution of insights, and the enablement of more closed-loop processes for responding to feedback.
  • Culture: The norms within an organization can both inhibit and nurture XM capabilities. As the Year of Insightful Actions rolls out, companies will need to make adjustments to their culture to ensure that employees understand why XM is so  important for their future success, recognize their personal roles in helping the organization deliver better experiences, and become increasingly comfortable with more rapid, distributed decision-making based on highly tailored insights.

Changes Will Affect All Six XM Competencies

As we often say, the key to path to XM success requires mastering competencies that are enabled by technology and nurtured by culture. Here’s a taste of what we expect to see across the Six XM Competencies during 2020:

  • LEAD: Organizations will expand their governance to cover a broader set of XM areas, starting by connecting many of their CX and EX efforts. The focus on actions will also drive organizations to adjust their program roadmaps to more efficiently deploy their resources.
  • REALIZE: As insightful actions become more of the norm, organizations will start making the case for XM based on the establishment of capabilities to rapidly adjust to changes in the market, not just based on near-turn upticks in business results.
  • ACTIVATE: The spread of insightful actions will force more employees across the organization to rely on data insights in their day-to-day roles. This will require new training to improve overall data literacy and the capacity to use insights to drive decisions.
  • ENLIGHTEN: To fuel insightful actions, companies will redefine what X-data they collect. Rather than relying on static mechanisms that remain as-is, they’ll build more dynamic approaches that they regularly adjust to fuel an evolving set of required insights.
  • RESPOND: This competency will get a lot more attention across the board, as XM programs turn their focus more explicitly on the actions they enable.
  • DISRUPT: With the spread of insightful actions, more employees will benefit from applying experience design skills. Look for organizations to find ways for propelling experience design across their organization.

The bottom line: Welcome to The Year of Insightful Actions!

New Research Shows Strong ROI of CX

The XM Institute has published new research that examines the impact that customer experience has on the loyalty of U.S. consumers across 20 industries. You can download these reports for free:

  • The ROI of Customer Experience. This research examines the correlation between customer experience and the likelihood of consumers to exhibit the following behaviors: purchase more products or services, recommend a company, forgive a company, trust a company, or try a company’s new product or service.
  • Data Snapshot: What Happens After a Bad Experience, 2019. This research shows how often consumers run into bad experiences, and then examines how consumer spending changes based on those miscues.

The graphics below from The ROI of Customer Experience show a strong correlation between good customer experience and improved levels of consumer loyalty. While these graphics cover some of the overall findings, the report also includes data showing the impact of CX on loyalty for 20 industries.

1912_ROIofCX_v2.png

The graphics below are from the Data Snapshot: What Happens After a Bad Experience, 2019. As you can see, the percentage of consumers reporting bad experiences ranges from a high of 17% for TV/Internet service providers to a low of 3% for retail and streaming media. We also found that the impact that a bad experience has on spending is greatest in fast food and smallest in health insurance and utilities.

AfterBadCX_v1

Remember, you can download these research reports and many, many more for free from the XM Institute.

The bottom line: If you improve CX, you’re very likely to improve customer loyalty.

New Research: The Global State of XM

GlobalStateOfXMThe XM Institute published a new report, The Global State of Experience Management (“XM”). The research is based on a survey of more than 1,200 senior executives from across six countries: Australia, Canada, Germany, Japan, the UK, and the U.S..

Before I share some of the findings, I just want to say that this report is free to download. As I’ve mentioned in the past, one of the cool things about moving to Qualtrics is that we get to share more of our research like this. Now on to my commentary…

First of all, we found that executives around the world regard XM as important – which is not surprising given its correlation with sales growth and profitability. However, the degree to which they focus on XM varies between countries.

Canadian executives are most likely to consider improving XM a top organizational priority, while German executives are least likely. Additionally, which experience areas executives are most concerned with improving also differs from country to country. Respondents from Germany and the U.S. are most focused on customer experience (CX), respondents from Australia and Canada are most focused employee experience (EX), respondents from Japan are most focused on product experience (PX), and respondents from the UK are equally focused on EX and brand experience (BX).

This report also examines how executives expect to use customer and employee feedback in the coming year as well as what obstacles are impeding their path to XM success. Organizations that are leading the way with XM most often describe technology limitations as an obstacle, while firms that are lagging in XM point to a lack of a clear strategy as a key obstacle.

Go ahead and download the report… it’s free.

Stop Employees From Asking For Good Ratings

Over the last few weeks, I’ve run into a couple of examples of a common problem with some Experience Management (XM) programs… “gaming.” Here’s what I found…

During dinner with a friend who is an executive at a large bank, our discussion made its way to XM (no surprise). He mentioned that his bank has an employee engagement study and that leaders are compensated based on the results.

Sounds like a good thing, right?

My friend then shared a conversation that his boss had with the leadership team. This senior executive told my friend and the rest of his direct reports that they needed to give him better ratings, because the current scores were negatively impacting his compensation.

Now for the second example. I’m a frequent flier, and regularly receive requests from airlines to provide feedback after a flight.

Sounds like a good thing, right?

During a recent trip on Delta, the flight attendant announced that we’d be receiving a survey and that she hopes they exceeded our expectations and will give them a 5 (see note about Delta below).

Do these two situations sound like a path to better employee experience (EX) or customer experience (CX)? Of course not! Both of these examples represent inappropriate behaviors. Whenever a person is pressured to give a specific score, the integrity of the measurement system is broken. We call this type of behavior “gaming the system.”

Gaming is a common problem. It happens when an organization puts too much emphasis on specific measurements — at the expense of the overall XM program.

The goal of XM is not to achieve some number, but to create a discipline to continuously learn, propagate insights, and rapidly adapt. This enables an organization to consistently deliver experiences that meet the needs of its key audiences. When an organization overly focuses on a number, often by attaching strong incentives to individuals based on the data, the system is bound to create these types of counter-productive “gaming” behaviors.

To help discourage this type of behavior, consider adopting these five rules to stop employees from gaming that I’ve described in a previous post:

  1. Don’t mention or refer to a score
  2. Don’t mention specific survey questions
  3. Don’t mention any consequences
  4. Don’t say or imply that you will see their responses
  5. Don’t intimidate customers (or employees) in any way

The bottom line: Make sure you’re not encouraging gaming behaviors.

Note: I regularly fly with Delta and this is the only time that I’ve run into this type of gaming behavior.

XM Versus BI: No Real Comparison

When I was at the SAP Select event in Berlin last week, I was asked a great question… Isn’t Experience Management (XM) just like business intelligence (BI)?

First of all, they’re nothing alike. However, I understand why they may appear similar at a surface level. That’s why I really like this question; it gives me the chance to provide additional clarity around XM.

Here’s why XM is nothing like BI:

  • BI is a technology, XM is a discipline. BI is a tool that takes streams of data and transforms them into presentable formats. XM is a discipline that helps organizations deliver differentiated experiences by continuously learning, propagating insights, and rapidly adapting. Organizations adopt XM by mastering a set of six competencies that are enabled by technology and nurtured by culture.
  • BI focuses on O-data, XM adds X-data to O-data. BI collects operational data (O-data) from a number of internal systems, looking at how operations are performing. While O-data provides some insights, it lacks the deep understanding that comes from people (customers, employees, partners, etc.) who can explain why things are happening, with information about what they are thinking and feeling. That’s why XM collects this experience data (X-data) and drives insights by combining it with O-data.
  • BI enables analysis, XM embeds analytics. BI provides a platform that analysts can use to manipulate data, often connecting it with other analytical tools. A strong XM platform uses analytics at the core of its data processing engine, so that all types of users can gain instant access to deep insights. The Qualtrics XM Platform includes Qualtrics iQ, which makes it easy for novices to tap into the power of powerful capabilities such as text analytics, predictive analytics, and voice analytics.
  • BI is about reporting, XM is about acting. The output from BI is typically a set of dashboards to be reviewed by a limited group of people across an organization. An XM effort may provide dashboards, but only when that format is part of driving smarter actions across an organization. That’s why the Qualtrics XM Platform supports a robust set of workflows based on insights that drive action across an organization and can integrate into process flows within systems such as CRM and HRM.

The bottom line: XM is a capability that is woven throughout your operating fabric.

Three Characteristics of XM Leaders

Earlier today, I led an roundtable discussion at SAP Select in Berlin entitled “Become a XM Transformation Leader.” This is a critical theme for many executives. If you want the benefits of Experience Management (XM), then you will need to lead a transformational journey across your organization.

If you’ve been reading my work, then you realize that XM is not about the delivery of a single great experience, but it’s a discipline that’s embedded across an organization’s operating fabric that enables it to Continuously Learn, Propagate Insights, and Rapidly Adapt.

How do you embrace this discipline? By adopting what the XM Institute has defined as the XM Operating Framework, which focuses on building six XM Competencies: Lead, Realize, Activate, Enlighten, Respond, and Disrupt.

This effort isn’t easy, and it requires a multi-year journey. In order for an organization to sustain a change agenda over that span of time, senior executives need to actively drive the effort. What does that mean for those leaders?

Three Characteristics Of Transformational Leaders

In my work with dozens of companies that have gone though transformations, I’ve observed that the most effective transformational leaders demonstrate three key characteristics. They:

  1. Communicate Why
  2. Model Desired Behaviors
  3. Reinforce Change

1) Communicate “Why”

The only way to get people to truly buy-in to change is for them to understand why it’s happening. Most executives tend to under-communicate, or they over focus on “what” the company needs to be doing and “how” it will get done. If you can land the “why” message, then people will support the change from a position of ongoing commitment, instead of just as an act of transactional compliance. Here are some ways that executives can improve their communications:

  • Develop a clear script about “why” the company is going through the change
  • Develop a clear script about “why” the change is good in the long run to your organization and its employees
  • Make sure that your direct reports fully understand why the change is going on and have their own scripts
  • Make sure that you regularly discuss the “why” in your ongoing communications

2) Model Desired Behaviors

One of our Six Laws of Customer Experience is simply: “You can’t fake it.” Your organization gauges what’s truly important not by listening to your speeches or reading your email proclamations, but by observing your actions. If people see that you haven’t changed, then they won’t change either. Here are some ways that you can model new customer-centric behaviors:

  • Look for new ways to use customer or employee feedback; consider regularly calling out to customers
  • Find ways to incorporate customer, employee, brand, or product data/insights into your decision-making
  • Start asking people-centric questions like: who is the target audience and how will this help them?
  • Make the XM change a top item on your meeting agendas; even above the normal operational items.
  • Make choices about what meetings you attend or decisions you make based on the signal it sends to the organization about your support for the change

3) Reinforce Change

It’s very easy for organizations to fall back into their regular, “comfortable” routines. So you need to make sure that you continuously and very purposefully reinforce the changed behaviors. Here are some of the things you can work on:

  • Hold your direct reports accountable for change in their organizations
  • Make “leading and supporting change” a key objective that you use to measure your direct reports
  • Publicly recognize and call out people in your organization that are acting consistently with where the company is heading
  • Don’t promote anyone in your organization, even high performers, if they are not proactively supporting the change
  • Embed the new direction in the hiring and new employee on-boarding process
  • Ask people in your organization what you could be doing to more effectively support the change
  • Develop personal goals every quarter for how you will reinforce the change

If you’re a leader who’s looking to drive transformation, then make sure to focus on these three characteristics. Your actions are more important than you think.

The bottom line: Transformation takes strong, committed leadership.

Expansion Of Experience Management And XM Professionals

It’s great to see so many people starting to see the potential of Experience Management (XM). As I’ve discussed, XM is the natural evolution in enterprise transformation. XM will improve just about any organization with the infusion of intelligence and humanity.

The Discipline of XM

XM is more than just a technology. It’s a discipline that needs to be woven across an organization’s operating fabric. When an organization fully adopts XM, it will not only be fully aware of the human beings that it touches, but it will proactively cater to their needs by continuously learning, propagating insights, and rapidly adapting.

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Two Dimensions of XM Expansion

That’s the end point, but how do organizations get there? By expanding their efforts along two dimensions:

  1. Maturity of competencies. For an organization to adopt XM, it needs to build a set of capabilities that we’ve defined as the XM Operating Framework. This means mastering the Six XM Competencies (Lead, Realize, Activate, Enlighten, Respond, and Disrupt) and evolving through five stages of maturity (Investigate, Initiate, Mobilize, Scale, and Embed).
  2. Diffusion of use cases. Once an organization starts building its XM competencies, it will want to expand the use of those capabilities to other areas through diffusion stages (Isolated, Expanded, Adjacent, and Extended). For instance, a company may start with a customer relationship NPS program and expand into transactional in-product feedback effort or employee engagement.

The Rise of XM Professionals

Over the next decade, I expect to see organizations building XM competencies while expanding the places where they apply those capabilities. There will be a constant flow of learning in one area and then applying that knowledge to other areas.

You can already see that starting with customer experience (CX), which I consider to be the initial use case of XM. Skills that have been built up in CX such as shifting from annual surveys to ongoing insights and uncovering opportunities to improve with journey mapping, are now also being applied to employee experience (EX).

That’s why it’s a great time to be an XM professional. The capabilities you develop in whatever experience area you start (CX, EX, PX, or BX), will be valuable across just about every component of every organization. It’s a set of skills that will become increasingly important and will, therefore, be increasingly in demand.

The bottom line: The world needs more XM and more XM professionals.

Your Organization Is An Experience Factory

Experience Management (XM) isn’t just important, it’s the primary function of every organization. Let me explain…

The XM Institute team spends a lot of time thinking about and researching XM. Which means we spend a lot of time trying to understand how human beings think, feel, and behave.

What’s become clear is that experience is not just an interesting topic, it’s a fundamental component of life. As a matter of fact, I believe that it’s one of three core human domains:

  • Body: How we maintain life.
  • Mind: How we think and feel.
  • Experience Processing: How we interact.

Experience is the one and only way that human beings interface with the world. We create, consume, and remember experiences… that’s it.

If you want to communicate with or influence someone, then it requires some experiences. If you want to teach or love someone, then it requires some experiences. If you want to learn or enjoy something, then it requires some experiences. If you want to sell or provide services to someone, then it requires some experiences.

Our lives are a sequence of experiences strung together and built on each other. These experiences can be as mundane as ordering paper towels off Amazon or as life changing as giving birth to your first child. And though experiences themselves only last a short time, they can have long-lasting consequences, shaping our behavior, attitudes, and understanding of the world.

If experience represents how human beings interact with the world, then it’s also the input and output of every employee, every customer, every partner, every supplier, and every person that touches an organization.

Therefore, all that an organization does is create experiences. It creates experiences for the employees who spend 8+ hours every day at the organization. It creates experiences for the customers who visit its website or use its products. It even creates experiences for shareholders who benefit or lose financially based on the organization’s performance.

When you get down to it, experiences are the sole output of a company. Which means whether an organization thrives or fails comes down to the experiences it delivers.

That’s why every organization (including yours) is an experience factory.

With this new context, focusing on XM is not an optional decision; it’s already the primary activity of every organization. Think about the experience chain where your organization continually creates experiences for employees whose actions then continually create product and brand experiences for the rest of the world.

While you don’t have a choice about engaging in XM, you do have a choice about being purposeful in those efforts. Too many organizations fail to focus on the experiences they deliver and leave this fundamental activity to chance.

To create a thriving experience factory, you need to build the capabilities to continuously learn about the needs and feelings of human beings across your ecosystem, propagate those insights to the people who can take action on them, and rapidly adapt your operations to adjust experiences based on those insights.

How do you create those capabilities? By mastering Six XM Competencies, and remembering that your organization is—at its core—an experience factory.

The State of CX Management, 2019

I’m particularly happy to announce a new research report, The State of CX Management, 2019. In the past, Temkin Group published similar research and we charged for the reports. One of the great things about now being a part of the XM Institute is that we can give it away for free.

To understand the current state of customer experience (CX) management, we surveyed 212 CX professionals around the world from companies with at least $500 million in annual revenues. Respondents at these large firms not only answered questions about their organizations’ CX efforts, they also completed our CX Competency & Maturity Assessment, which evaluates the Six Experience Management (XM) Competencies: Lead, Realize, Activate, Enlighten, Respond, and Disrupt.

Since you can easily download the report, I won’t provide a full summary. Instead, here are some of my favorite data points along with additional commentary:
  • The focus on CX is growing. Eighty-one percent of respondents plan to increase their focus on CX in the upcoming year, while only 4% plan a decrease. That represents significant momentum for CX.
  • CX and EX make sense together. Seventy-two percent of respondents felt that it was at least moderately important to improve employee experience (EX) while they are improving customer experience. That shouldn’t be a surprise. As I’ve said in the past, CX and EX are inextricably linked.
  • CX professionals are leading the way. About two-thirds of companies have a senior executive in charge of CX and a centralized CX team. And a third of those CX teams have 11 or more full-time employees. This makes me feel great. When we launched the Customer Experience Professional’s Association in 2010, our hope was to create a thriving CX profession… we’re there! Check out my comments about the future of the CX profession.
  • Digital channels need an XM infusion. When we asked respondents to evaluate the experiences they deliver across multiple channels, the two experiences they rated most highly were on the phone with an agent (59% said it was at least good) and in a store/branch (41% said it was at least good). Digital channels fell well behind. Companies not only need to better understand these experiences, but they should also learn from human interactions. Check out our report, Humanizing Digital Interactions (yes, that one’s also free).
  • Companies get in their own way. What challenges do companies typically encounter as they work to improve their CX? At the top of the list is other competing priorities, which was selected by 59% of respondents. This has been the top problem for years. It’s important that CX teams link their efforts to business results that the company cares about and the individual goals of the senior executives. It’s worth taking a look at another free report, Activating Executive Commitment.

Comparing CX Leaders With CX Laggards

The XM Institute has built an XM maturity model based on the Six XM Competencies. Respondents completed our assessment and only 6% of companies ended up in the top two (out of five) stages of maturity. We compared companies with higher levels of maturity (CX leaders) with those who had lower levels of maturity (CX laggards). When compared with CX laggards, we found that CX leaders:

  • Enjoy stronger financial results. Seventy-one percent of CX leaders report that their CX efforts had a positive impact their financial performance over the previous year, while only 38% of CX laggards report the same.
  • Have more senior executive support. Fifty-seven percent of CX leaders consider their most senior leader, such as their CEO, to be a “strong” or “very strong” champion of CX, compared with only 38% of CX laggards.
  • Have more coordinated CX programs. Sixty-four percent of CX leaders report having significant CX efforts underway across the company with significant coordination across these efforts, compared to only 26% of CX laggards.
  • Foster a more empathetic culture. The two groups differ across a number of cultural elements. We found the largest gap in agreement with the statement our organization demonstrates empathy for its customers; 80% of CX leaders agreed, while only 37% of CX laggards agreed.
  • Deliver better digital experiences. As you’d expect, CX leaders report delivering a higher percentage of “good” and “very good” experiences across every interaction channel we examined. Leaders and laggards diverge most when it comes to the experience they deliver in mobile apps, online self-service, and online chats.

As I’ve said, we’re excited to be publishing this research as part of the XM Institute. Make sure to download the free report, The State of CX Management, 2019.

Five Recommendations For De-Emphasizing Benchmarking

Benchmarking, benchmarking, benchmarking… it’s a popular subject.

I’ve been publishing CX benchmarks for more than 10 years, so you might be surprised by my point of view on the topic: benchmarking is often overused and misinterpreted. I’m not saying to give up on the entire activity, but people often spend too much time and energy focusing on industry comparisons that aren’t necessarily an accurate reflection of the genuine customer experience.

Let me start by saying that benchmarking is a perfectly good activity. It makes sense to periodically evaluate your performance relative to competitors, especially as an input to your strategy. And it’s also healthy to look at your performance relative to companies from other industries.

While benchmarking provides value, people often let it distract them from more important activities. So here are five recommendations on how to think about benchmarking:

  1. Focus on improving, not comparing. When it comes to the use of your insights activities, it’s critical that an overwhelming majority of your efforts are aimed at finding opportunities to improve — not scorekeeping. Many executives seem to feel as though a benchmark provides a security blanket of sorts—one that shows their remit within the business is in line (or better than) the competition. Whether it’s from internal metrics or external benchmarks, knowing where you are and where you’ve been is not nearly as valuable as knowing where you should be heading. Companies often use up a lot of their feedback capacity to ask customers (and employees) questions solely for the purpose of fueling a benchmark. My advice: Optimize everything you do on driving improvements, even if it means dropping some benchmarking questions.
  2. Obsess about customers, not competitors. One of the risks of relying too much on benchmarking is that it can mask your performance when there are shifts in the market, such as new competitive options or evolving customer requirements. You may be doing well against current competitors and with existing customers while the market is slipping away from you. Your critical strategic question should be are we delivering the right experiences to the right customers?, not how are we doing versus our competitors?
  3. Compare data within studies, not across them. Every industry benchmark is based on a specific methodology, with it’s own target audience, sampling approach, timing, collection mechanism, questions, and calculations. Each of these items has an impact on the results. As I often say, sampling patterns really, really matter. It’s often ineffective to compare results across different studies unless you control for all of those items, which can be very difficult. So don’t spend too much time trying to reconcile an industry benchmark with internal results.
  4. Set goals around key drivers, not necessarily industry benchmarks. As you think about setting goals for your organization, don’t fall into the trap of relying on benchmarked metrics just because the data exists. You should be setting goals for the items that drive the overall performance of your business, which may or may not look anything like the industry benchmarks. What’s unique about your brand and what creates a loyal customer? We recommend following five steps for creating a CX metrics program, starting with higher-level goals and working your way down to metrics on key drivers.
  5. Rely on internal insights, not external data. While external benchmarks can provide a high-level snapshot of relative performance, they lack the depth and adaptability to dig into critical company-specific topics such as the needs of target customer segments and your performance during key moments of truth. The additional value of internal insights are also dramatically amplified when you combine experience data (X-data) with operational data (O-data). The ability to dig into key questions and find more meaningful insights makes building internal insights capabilities a much more valuable endeavor than digging into external benchmarks.

The bottom line: Choose actionable insights over competitive comparisons… everyday!

Talking Employee Experience and XM With Ben Granger

Our team joined Qualtrics last October to create the XM Institute, and one of the great things that we’ve found is that there are many people across Qualtrics who are experts in different aspects of Experience Management (XM). So I decided to interview one of them, Ben Granger.

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Ben is a Sr. Principal for Global EX Strategy. He spends his days thinking about and helping organizations design leading-edge EX programs. Like many of the subject matter experts across Qualtrics, Ben had a strong background prior to joining the company. He has a PhD in Industrial Organizational Psychology and has worked in EX at Verizon.

Here’s our Q&A:

Q1: We describe experience management as a discipline where organizations “continuously learn, propagate insights, and rapidly adapt.” Based on our your work with companies, what do you think that looks like for a company that is really doing well with EX?

Ben: This shows up in the mindset that the organization has around employee experience. Namely, the belief that they will never get it perfect, that EX is a moving target and that they should always look for ways to improve. It’s ironic, actually, that some of the most mature EX programs I run into are run by organizations that seem to always feel like they are behind. They have this thirst to keep pushing things forward. Companies like Quicken Loans and Rogers Communications come immediately to mind – they are always very humble about the current state of their programs but in actuality, their programs are well ahead of others in their industries. I think this is because those organizations or either intentionally or unintentionally treating EX as a discipline.

Q2: We recently defined Six XM Competencies, LEAD, REALIZE, ACTIVATE, ENLIGHTEN, RESPOND, and DISRUPT. Can you share some best EX practices you’ve seen in one or two of the competencies?

Ben: Firstly, I should say that I am a big believer that the “best practices” organizations employ should be heavily dependent on their maturity. 

1907_6XMCOmpetencies3Some of the practices that highly mature EX programs use could backfire if an organization has never done formal employee measurement before. So that is always a consideration we make when we advise our clients. 

That said, one competency that I really like is “Activate”, which is about building the skills, support and motivation for EX. This is where many organizations get stuck in a rut. Leaders see the inherent value of measuring and improving EX but when they think about increasing the measurement of EX, it sounds very daunting because of the way that EX or engagement has been measured in the past. They are jaded by the old school process. So to “Activate” the organization, you really have to change leaders’ mindsets. You have to reframe what “action planning” is, which sometimes involves calling it something different! Basically, instead of handing leaders a dense report of data and charts, give them short and prescriptive readouts that are focused on “what they should do to improve EX”. Instead of forcing them to add “action planning” to their list of things they have to do, provide the EX insights in the same tools and systems they already use. These simple practices show leaders that it can actually be simple to leverage employee insights. 

Another that is a lot of fun is “Enlighten” which is about providing actionable insights across the organization. For this one, I like to borrow the principles and practices from the customer experience side of the house. For example, if you compare how organizations structure their employee surveys and their customer surveys, there is usually a huge difference. The CX surveys tend to be shorter, more conversational, more in-the-moment, and built into the apps and systems that the customers use. On the other hand, the EX surveys are quite the opposite – they are long, tedious and oftentimes require employees to completely leave their work environment to provide feedback. And to be clear, this is absolutely ridiculous and there is no reason why this has to the case! So when we are building the enlighten competency for our EX clients, we focus on those consumer-based principles – simple things like shortening surveys, giving employees multiple avenues to provide feedback (e.g., on their mobile phones), making the survey items more conversational, integrating the feedback into the systems that employees are already using to make feedback part of the process. 

Q3: When you run into companies that are just starting their EX efforts, what are the type of things that you typically recommend that they start with?

Ben: Employee engagement surveys have been under attack in the popular press recently but honestly, I think this is one of the most practical and reasonable places to start on the EX journey. So when I work with organizations that really have never done formal EX measurement in the past, I usually recommend starting with this approach. 

1907_EmployeeFeedback4I think this is important for a couple of reasons: (1) it gives the organization an opportunity to explicitly ask their employees for feedback. I borrow that line from professor Ed Batista because I think it summarizes how important it is for organizations to “explicitly ask their employees for their feedback, (2) it gives everyone in the organization the opportunity to give feedback, and (3) it gives the organization time to build some of those competencies like “realize” and “activate” without overburdening employees or leaders.

For example, if an organization has never done employee surveying before, then before jumping to frequent pulsing, for example, they have to build trust among employees that their feedback won’t be used against them, and that their feedback matters. And on the flip side, you have to build manager capabilities to understand and act on feedback. If this isn’t a natural activity for them, it will take time to build these capabilities. And a traditional engagement survey is a great way to start building that trust among employees and those capabilities among managers. And (4) this is the progression that most organizations have taken. So it’s a well worn path and we know exactly how to evolve EX programs from that starting point. 

Q4: Thinking about the future, what are some of the things that you imagine companies will be doing with their EX programs that they are not typically doing today?

Ben: I mentioned this earlier but I think that we will see a lot more consumer-based principles make their way into EX programs. We are already seeing it happen in mature organizations but this will accelerate in the next few years with the field of XM and the continued war for talent. 

Another that I think we will see more and more of is passive listening. For example, collecting employee experience data from social media and combining those insights with insights from formal, active surveys. We have some clients that are already doing this and it appears to be highly effective so long as organizations don’t misuse them and are transparent with their employees about them. 

And of course, I definitely see much more integration across the pillars of XM. We are only scratching the surface of what’s possible today. The linkage research across EX and CX is nearly 20 years old now and yet, there hasn’t been much in the way of progress in the field since. That will change and that will change quickly. Organizations are going to move well beyond the simple link between things like EX and CX and begin to have a sophisticated understanding of the interrelationships among practices that improve EX, downstream and long term CX outcomes, the brand experiences those practices create and how those brand perceptions, in turn, impact their ability to attract and retain employees and customers. And by the way, my guess is that this whole chain of events and experiences starts with EX!

Q5: When organizations are actively trying to improve EX, what are some of the obstacles that they really need to watch out for?

Ben: Trying to move too fast – this is a self-imposed obstacle in a lot of cases and it is completely avoidable. It is very tempting to want to go from nothing to best-in-class overnight. But this is rarely (if ever) a good idea. As I mentioned earlier, you have to first build trust among employees and capabilities and buy-in among leaders. This takes time to do. And business leaders can get impatient – they invested in improving EX and they want to see returns…today! I try to set my clients’ expectations – EX programs are kind of like diesel engines – they take a little while to get going but once they are running, they just keep on going.

Making assumptions based on anecdotes – this also is super common and avoidable. The point here is that organizations should not bypass legitimate measures of EX in favor of one-off anecdotes or examples. Within XM, we talk about experience gaps and oftentimes, these gaps exist between what organizational leaders “think” is happening and what employees or customers really think. There is nothing wrong with leveraging personal anecdotes and examples but using those as the sole source of information to drive actions or processes intended to improve EX is a terrible idea.

A quick example – I was working with a large retail bank a few years ago and one of the consistent themes that came out of their annual survey was that call center employees were not happy with their “career progression” opportunities. At the time, their survey was not sensitive enough to dive deeper into what employees meant by this. A few sr. leaders reasoned that the way to fix that was to build a formal career progression program to give employees line of sight into their next move. But we suggested that before they did that, we should really try and understand what the employees meant by career progression. And sure enough, we did a follow-up survey and looked at their open ended comments and the employees were actually much more interested in stretch projects and having more autonomy in their day-to-day jobs and opportunities to do different jobs in different departments. This obviously made a huge difference in what the company implemented…and saved them a ton of money by the way.  

Q6: What most excites you about the emerging category of Experience Management?

Ben: I mentioned it a few times but I am super excited about what we can learn and leverage from the CX space. I have learned so much from my CX counterparts over the last few years.

I also legitimately think XM is going to make the business world much more human. If you think about it, what XM essentially states is that it’s actually better for business if you do right by your employees, your customers and your stakeholders. Imagine if the opposite were true or if organizations perceived the opposite to be true? IF that were the case, our lives would be much worse! 

But luckily that is NOT the case. So XM will continue to prove this to be the case and eventually the organizations that provide the best experiences will be the ones still standing…and that is a great thing for all of us!

Q7: Now for something a bit more personal, what is your favorite quote from a movie, and why does it resonate with you?

Ben: “Where we’re going we don’t need roads” – Doc Brown from Back to the Future II.

First of all, this is one my favorite movie trilogies of all time – I could watch the first two movies over and over and never get tired. 

But tying it to EX, it really resonates with me that we often think about the future in terms of what we’ve done or what we’ve had to do in the past. Like when leaders immediately get scared of something like lifecycle feedback or pulse surveys because they immediately think about how painful running that one annual survey was in the past. Sometimes, we have to forget the past and imagine what it could/should be like. 

Operationalizing XM: The Report

I’m super excited to announce the publication of new research from the Qualtrics XM Institute, “Operationalizing XM.” It describes how organizations can tap into experience management (XM) to continuously learn, propagate insights, and rapidly adapt—capabilities that can be used by just about every organization. It’s a must read (and a free download) for anyone who cares about or is just interested in XM.

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The report outlines the XM Operating Framework, and goes into detail on Six XM Competencies.

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Here’s the executive summary of the report:

An ever-increasing flow of information is shifting power from institutions to individuals, while new technologies are redefining business models and shortening product lifecycles. To succeed in this environment, organizations need to adopt a new approach that focuses more on the experiences of human beings throughout their ecosystem. How? By developing a discipline called Experience Management (XM). This report introduces this new approach and provides details around:

  • The XM Operating Framework, which is built on a combination of competency, technology, and culture.
  • The six XM Competencies—LEAD, REALIZE, ACTIVATE, ENLIGHTEN, RESPOND, and DISRUPT—that organizations should focus on to improve their XM capabilities.
  • The five stages of XM maturity that companies will progress through as they master the six Competencies: 1) Investigate, 2) Initiate, 3) Mobilize, 4) Scale, and 5) Embed. This report also includes an XM Competency & Maturity Assessment organizations can use to calculate their own maturity levels.
  • The XM Diffusion path that companies should follow as they expand their XM efforts across their entire enterprise.