Businesses today are fiercely customer-centric, primarily competing on customer experience where in the past they would compete with low pricing. There’s a good reason for this, countless studies show that by focusing on customer experience, businesses can improve customer retention, customer satisfaction, and ultimately, boost revenues. One study found that companies with a customer experience mindset drive 4-8% higher revenues than their competitors. Another study found that 84% of companies that continually work to improve their customer experience report an increase in revenue. Yet another study found that companies that lead in customer experience outperform their competitors by 80%. We could go on because there are many more studies like this, but you get the picture. Focusing on customer experience adds value to businesses.
But how should you go about improving your customer experience? Do you need to overhaul your CRM? Start using an omnichannel platform? Offer more communication channels? Pay attention to your customer satisfaction scores? Well, yes. All of these goals can help improve your customer experience, but many companies are now also taking one it steps further and hiring a customer experience officer. Today we’re going to be delving into the role of a customer experience officer and analyzing what they bring to the business. We will also be asking the question “should you hire a CXO?” by looking at six benefits a CXO can bring to your company. Let’s take a look.
- Become more customer-centric. …
- Deliver a consistent customer experience. …
- Refine the product roadmap. …
- Improve customer retention. …
- Increase customer lifetime value.
CXO: The Chief Experience Officer role
What does a chief experience officer do?
Some of the typical responsibilities associated with the role of a chief experience officer include:
What is a chief experience officer?
A CXO is an executive-level leader who aims to improve an organizations customer experience performance. Customer experience typically comprises customers perceptions of a company and their interactions with it. These professionals often serve as ambassadors or mediators that build connections between companies and their customers. They monitor the organizations interactions with customers and identify and implement methods to maintain and move toward positive results.
For example, the chief experience officer often oversees the customer journey, creating maps to identify potential gaps and implement solutions. They may also help establish and communicate a companys value proposition. The value proposition explains what factors make customers choose the company over its competitors.
To develop this message, the chief experience officer gains an understanding of customers needs and interests. They often develop ways to deliver the value proposition using their language or preferred communication channels.
Benefits of having a CXO
The role of a chief experience officer is growing in popularity for many organizations. If you hold a management or human resources position, you may want to fill this position for several reasons, including:
1. Improves customer retention
Customer retention refers to the methods used by companies to ensure that customers who try their offerings return and make future purchases. Because the chief experience officer is responsible for understanding an organizations customers and their needs, they can implement strategies to engage them more effectively.
These strategies may also align with overall organizational goals because its often less costly for companies to sell products to their existing customers than to acquire new ones. While the chief experience officer monitors the customer experience and tracks feedback and trends, they can also research customers values.
Aligning those values with the brands message or services can help attract and retain those customers. When a customer identifies with and appreciates these factors, it can encourage them to make return purchases and stay loyal to the company.
For example, the customers may show an appreciation for sustainable brands. The CXO may urge the company to implement sustainability initiatives and marketing campaigns. The overall positive experiences at each step of the customer journey can also help retain customers because they develop trust in the company and enjoy their interactions with it.
2. Helps improve sales
Loyal customers often bring in more revenue for a company because they make more purchases over time or spend more on each purchase. Increasing customer loyalty is one of the primary goals of the customer experience officer.
By building customer loyalty, they also aim to increase the customer lifetime value, which represents the amount that a customer spends over the course of their relationship with the company. The longer a company can retain a customer, the higher the customer lifetime value. The customer experience officer often monitors customer satisfaction ratings and other metrics to determine the baseline loyalty level.
They may conduct research about their most loyal customers (promoters) and disloyal customers (detractors). Promoters value the brand and can help promote it to others, while detractors might try to discourage people from purchasing from it. The chief experience officer can use insights about these groups to implement strategies that enhance loyalty while reducing detractors.
For example, they may develop strategies to resolve common complaints from detractors. When customers feel valued by a company and have positive interactions with it, they may be more willing to spend money on its services over the competitors offerings.
3. Provides a customer-focused approach
Hiring a chief experience officer helps establish a customer-centric culture for an organization, prioritizing customers rather than just the products or services. For example, the company may have a good idea for a product, but launching new items requires having a target market to sell them effectively.
Because the chief experience officer has a strong understanding of the organizations existing and target customers, they may also help assess whether a product is worth pursuing. With a customer-focused approach, each level of the organization thinks about the customers wants, needs and expectations and works to address them.
The chief experience officer serves as the leader of implementing and monitoring this culture within the organization. This professional works with leaders from marketing, sales, product development and other departments to make sure projects and processes meet or exceed customers needs and expectations. In a customer-centric organization, employees make sure the customers have a positive interaction at every staying of their journey. They also can create brand messages to showcase why the product is more valuable than competitors.
4. Establishes a brand and voice
A companys brand represents elements that make it easily recognizable to the public. The branding can represent visual elements, such as a companys logo, packaging design and colors, fonts or other design elements included in marketing materials. Other elements can include the companys mission, values, slogan and online presence.
Branding can help differentiate a companys offerings from its competitors, and effective branding often helps build awareness with the public. For example, when looking at two similar items, customers often feel more comfortable choosing the option theyre most familiar with rather than an unknown entity.
As seen, a companys brand can increase its recognition and reputability in its market. The chief experience officer can help ensure the brand aligns with its existing customers or attract new ones. For example, they may monitor social media channels or company websites to assess how customers perceive and respond to its mission, values, voice and more elements. When they identify complaints or issues, they may work with members of other departments to make changes.
5. Encourages more consistency
Because the chief experience officer is responsible for implementing customer experience strategies across the organization, they can help establish more consistent procedures, processes and messaging. Consistency is important for the customer experience because it helps them know what to expect in their interactions.
For example, knowing that they can expect a positive, inviting experience when calling your service line for help can encourage them to contact you and remain loyal. This consistency may also support the different channels used by the company, so its easy for customers to move from one to another, such as in-store versus online experiences.
The chief experience officer helps establish brand messages that attract and engage customers. They monitor the buying experience and identify issues where processes or messaging dont align with the companys defined brand messaging or values. Next, they can develop and implement methods to resolve them and reduce potential harm to the brand or its reputation.
For example, if a company promotes an environmentally friendly lifestyle, the chief experience officer might work with the product design team to replace its bubble wrap packaging with recyclable options.
What skills does a CXO need?
If your company wants to fill a chief experience officer role, you can establish the required qualifications. For example, this executive-level role may require an advanced degree in a relevant area of study, such as marketing, public relations or business administration, or at least 10 years of experience in the field.
They may also need relevant technical skills related to marketing, advertising and the customer experience. These skills demonstrate they understand and can perform the jobs responsibilities.
These professionals also benefit from having several soft skills, which can help enhance their performance and collaboration with others. These skills may include:
Should companies create the CXO position or not?
What does CXO level mean?
What is the difference between CEO and CXO?
What does an employee experience officer do?