This rapid evolution means that the industry buzzword “transformation” is itself transforming. Historically, when we think about transformation in CX, we would make large sweeping plans leading to big changes and, finally, that mic-drop impact that really changed our business—a transformation.

The problem now is that a big plan like that might take a year or more to execute, while today’s current best CX technology is evolving faster than that—quarterly or even monthly. What happens a year from now, when you are set to unveil your grand transformation and it turns out you’re unveiling something three tech-generations behind? Moreover, consider the implications of signing a long-term contract with one tech provider, only to find out a few months later that your shiny new system is already outdated. If you’re dealing with a large stack of tech products, coordinating all the stakeholders to implement these systems can extend timelines even further.

How Transformation Is Evolving with Technology

Transformation as a concept is still so important in CX. So what does it look like today and who are the brands achieving it? The answer lies in adopting short, “sprint” style planning that emphasizes flexibility. Once upon a time, it was efficient to execute it all at once. Today, the brands who win are those who red-circle two or three things that would be highly impactful to their business and can be executed in less than three months. You focus on a couple of impactful changes achievable within a single quarter, then refine them based on performance, keep what works, and discard what doesn’t. And then you do it over again, following a defined roadmap moving towards your goals, banking value as you move forward.

Why do it this way? Well, think about it like this: The traditional plan, even if it worked out perfectly and you got great results from it once it finally launched—let’s say a year later—your customers have really not seen any improvement in your CX for that entire period of time. They’re going to be benchmarking your brand against other companies they interact with that do have some of these advancements, and they’ll wonder why you’re still doing things the old way. That’s the aforementioned consumer demand for automation and AI. And now that we’re seeing some of the most pronounced improvements in CX in decades, consumers will expect it. 

Innovating with Intent

In this new era, transformation is no longer about overhauling systems in monumental, infrequent leaps; it’s about innovating with intent and agility. This approach not only keeps a brand technologically relevant but also deeply attuned to the evolving expectations of customers. Those companies that excel are the ones that consider transformation an ongoing process, rather than a one-time event. By embracing shorter, focused cycles of innovation, they are able to continually introduce improvements, learn from real-time feedback, and rapidly adapt to emerging technologies and market dynamics. This constant state of evolution is crucial, not just for staying competitive but also for leading the charge in customer experience innovation.

Creating a Culture of Continuous Improvement

The shift from large-scale transformations to iterative improvements demands a cultural shift within organizations. This new culture prizes flexibility, speed, and a tolerance for failing fast, allowing lessons to be learned quickly and incorporated into future initiatives. As a result, organizations not only keep pace with technological advancements but also foster an environment where innovation thrives. Continuous improvement becomes part of the organizational DNA, empowering teams to experiment and continually enhance customer interactions. Ultimately, this dynamic approach to transformation equips businesses to not just respond to customer needs but anticipate them, ensuring that their customer experience is always at the cutting edge.

Guest post written by Jeff Fettes, Founder and CEO of Laivly.

Laivly’s proprietary artificial intelligence platform, Sidd, enables the world’s biggest brands to leverage AI, automation, and machine learning into their existing customer service programs, swiftly and without extensive integration barriers, with industry-leading agent copilot and self service solutions.

The post The New Transformation appeared first on Execs In The Know.

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Does that mean the quest for improved CX isn’t worthwhile? Of course not. But it does mean that as you transform, it’s crucial to anticipate the unintended consequences, and like Odysseus, be prepared to traverse uncharted waters with the help of external partners.

Most CX teams today have limited manpower to spare, which is why keeping focused on what matters the most — the needs, preferences, and emotions of your customers and employees can help you avoid potential pitfalls along the way.

Navigating Uncertainty with Human-Centered Design

In a world where change is relentless and technology investments often outpace organizational readiness, uncertainty in our space looms large. Many CX leaders are left wondering how to innovate — in the right ways — when capabilities and expectations are changing so often and so fast.

Chances are, your organization is feeling the pressure to keep pace, while taking part in an intricate balancing act between efficiency (how can I reduce the cost of my operations) and experience (how can I improve customer satisfaction and loyalty).

That’s where human-centered design comes in. It serves as a bridge between what people truly need, the vast potential of technology, and the requirements for success. Put simply, it’s an approach that prioritizes users’ needs, behaviors, and preferences, ensuring solutions (and service capabilities) resonate and deliver value.

But what’s presented above is not simply a design concept; it’s a control mechanism to ensure your transformational roadmap is steering your lean teams in the right direction while mitigating risks. And without it, your business may face one or more of the following unintended consequences.

Unintended Consequence #1: Technology Waste

Nearly a third of SaaS spending is going to waste within the average company, according to one study by Vertice. This occurs when companies invest in new technologies but fail to fully utilize their capabilities due to operational silos, skill gaps, broken processes, or inadequate training to integrate new capabilities into existing workflows.

Example: A multinational corporation invested heavily in a social media management platform for its marketing team without considering the use cases and needs of its frontline customer care staff. As a result, the system was underutilized, and redundant capabilities were procured, leading to wasted resources and missed opportunities for improved customer engagement.

Solution: Before even signing up for a software trial, map your processes and conduct user research to identify pain points and preferences. Best-in-suite technologies can break down the silos between customer service and marketing and highlight areas for cross-functional collaboration while unifying the customer experience.

When you involve your frontline staff and end-users in the decision-making process, you can ensure that the technologies you invest in will align with actual user needs, thereby reducing waste and maximizing ROI.

Unintended Consequence #2: Increased Complexity (for Agents & Customers)

Introducing new technologies without taking a “test-and-learn” approach can lead to increased complexity, frustration, and reduced satisfaction. Consider the employee experience. Contact center agents are tasked with learning seven tools, on average, to do their job well. This demand often leads to heightened burnout and attrition, resulting in higher operating costs for customer service departments — already under pressure to do more with less.

Example: A technology company implemented asynchronous messaging to improve productivity and cut costs but failed to capture Voice of the Employee (VoE) feedback before scaling it across its service delivery network. Performance and morale declined as agents struggled to navigate between chat windows and messaging threads. Tickets were closed prematurely, and technical issues and limitations became fires for agents to put out, instead of issues that could have been proactively addressed in the initial design and prototype.

Solution: Human-centric design lives and dies by user feedback. By getting input from agents throughout your CX transformation, you can continuously identify pain points, usability issues, and areas for process reengineering and automation.

Unintended Consequence #3: Negligent Misinformation

Many AI-powered systems, such as chatbots, may inadvertently provide inaccurate or misleading information, leading to diminished customer trust and satisfaction.

Example: Last year, Air Canada announced its new AI-enabled customer support chatbots. When one customer interacted with the bot to seek information on a bereavement rate for a flight, the chatbot conjured a response inconsistent with the airline’s policy. The airline, however, refused to honor the information given by the chatbot. The customer sued Air Canada, and won, citing negligent misrepresentation.

Solution: AI’s success hinges on human-centered design. Don’t forget to regularly test and validate your AI algorithms, maintaining accountability with feedback loops and human oversight to safeguard customer trust and satisfaction.

Unintended Consequence #4: Decreased Human Interaction

While CX transformation aims to streamline processes and optimize costs, over-automation can backfire on an organization — creating more problems than solutions.

Example: Frontier Airlines sought to modernize its delivery model and cut costs by replacing voice support with chatbots and self-help automation. However, their abrupt implementation led to a wave of negative reactions from frustrated passengers unable to get the assistance they needed. Rather than enhancing the customer experience, the move backfired, resulting in increased complaints and dissatisfaction. Moreover, its chatbot was rudimentary and failed to leverage advanced conversational AI, providing generic responses instead of addressing individual queries effectively.

Solution: Human-centered design ensures that automation complements, rather than replaces, human interaction. By preserving empathy and emotional connection in customer interactions, it maintains the integrity of the customer experience through a “test-and-learn” approach vs. Frontier’s abrupt switch.

Unintended Consequence #5: Impacts to Marginalized Communities

CX transformation efforts may inadvertently overlook certain customer or employee groups, including those with disabilities, limited access to technology, or those in occupations with high automation potential.

Example: A McKinsey report found that 24% of all Black workers work in occupations with greater than 75% automation potential. And while generative AI can optimize costs and increase profitability, it can also widen the racial wealth gap without careful thought and consideration.

Solution: Integrate human-centric design principles to prioritize inclusivity and accessibility. When you actively involve diverse user groups and suppliers in your processes and test them for wide-ranging accessibility, you can ensure your CX initiatives cater to all customers. The best part? AI can help with this. Leveraging AI in training and upskilling programs can boost graduation rates and create opportunities for upward mobility, fostering greater equity within organizations.

Unintended Consequence #6: Data Privacy & Cybersecurity Risks

CX transformation often involves collecting vast amounts of customer data for personalization purposes. But this can also raise privacy concerns if not handled carefully.

Example: In 2017, Equifax — one of the three major credit reporting agencies — was attacked and had the personal data of 147 million Americans exposed. One of the biggest contributing factors to the breach was a missed patch, which was overlooked through the company’s automated scanning process.

Solution: Adopting a human-centered design approach prioritizes transparency and user control over data collection and usage. This not only fosters trust with customers and employees but also ensures compliance with regulatory requirements, safeguarding against potential breaches.

The Arrival Home

Like Odysseus navigating the treacherous waters of his own odyssey, embarking on a journey toward CX transformation requires foresight, resilience, and strategic navigation. So, as your teams chart your own course home, remember that beyond the allure of technological advancements lies the heartbeat of any organization — its people. By placing human needs and experiences at the forefront, we can bridge the gap between innovation and user satisfaction, ensuring that our odyssey toward greater CX maturity isn’t just a voyage, but a triumph of empathy and understanding.

Join me on March 14 at the Customer Response Summit in Tucson, AZ, as we delve deeper into this topic, covering strategies for “Modernizing Your Service Delivery Model Without Losing the Human Connection.” As VXI’s VP of CX Acceleration Services, I’ll be leading the way, as we explore how human-centered design can illuminate your path forward.

Need help navigating your CX transformation journey? Contact us to speak with our CX Accelerate team today.

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