PAPER
Customer Experience
Maturity Leads to
Financial Gain
Insights from the Landmark MaritzCX CXEvolution Study
PAPER CXEvolution Study Results
EXECUTIVE SUMMARY
Customer experience (CX) programs are prolific, but most have not produced
the success that companies want. Why? Because most programs are focused
on chasing scores rather than examining how to achieve those scores. The
CXEvolution organizational assessment and maturity framework has completely
redefined the approach to CX management, identifying the roadblocks that
prevent companies from realizing business outcomes through their CX efforts.
This framework combines academic rigor and deep practitioner experience to
build an empirically valid maturity model that organizations can use to achieve
measurable gains in their customer retention and financial goals. The bottom line,
as described in this paper: stop chasing scores and start chasing outcomes.
THE CX
IMPERATIVE
TAKES HOLD
After a decade of talking about getting the customer experience
(CX) right, new evidence from MaritzCX suggests that CX
programs are finally becoming an operational priority for
companies. According to the recent MaritzCX CXEvolution
global study of 4,000 CX professionals worldwide, 56% have a
formal CX program, with airlines, consumer packaged goods,
breweries, apparel, and supermarkets leading the pack. As
additional proof of the CX imperative in global businesses today,
in 2014, companies spent $3.7 billion on CX programs and
initiatives, projected to rise to a whopping $8.3 billion in 2019.1
For further evidence, a search on LinkedIn yielded 9.4 million
members with CX in their job titles.2
Not necessarily. Although the incidence of CX programs is on
the rise, outcomes have not matched the expense and effort
invested in them. In fact, only 28% of CX professionals surveyed
in the MaritzCX study reported that their CX programs were
very successful.3 This result is also corroborated by recent
research from the Temkin Group, finding that less than one-third
of companies rate their efforts as “good” or “very good” when it
comes to “making changes to the business based on insights.”4
But there is a silver lining. The CXEvolution study also found that
even incremental gains in CX maturity yield significant results.
In fact, those companies with a higher maturity level in their
implementation of CX programs, measured by the specific
things they do, report big financial gains. In other words, CX
programs are definitely not created equal. MaritzCX examined
these differences and has uncovered the formula that makes
some companies much more successful than others when it
comes to their CX programs’ impact on the bottom line.
With all this fuss, CX programs should be very successful, right?
1
Source: Markets and Markets “Customer Experience Management Market” report
2
Source: LinkedIn Advanced Search query on “customer experience” in current title October 28, 2015
3
Source: CXEvolution MaritzCX global study, 2015
4
Source: Temkin Group State of the Voice of the Customer Programs, 2015
(http://www.prnewswire.com/news-releases/voice-of-the-customer-programs-are-successful-but-not-yet-mature-according-to-new-temkin-group-research-300166622.html)
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PAPER CXEvolution Study Results
2014
$3.7 Billion
2019
$8.3 Billion
Only 1/3 of companies rate
their CX efforts as good
or very good at “making
changes” to the business3
Money spent
on CX programs
and initiatives1
(Projected)
A search on LinkedIn
yielded 9.4 million
members with CX in
their job titles2
72%
72% of CX professionals
surveyed stated CX
programs NOT very
successful4
FIGURE 1: State of customer experience
THE MEASUREMENT TRAP:
MORE DATA DOESN’T HELP
Part of the problem, the data suggests, is that too many
organizations think they can improve CX by simply adding more
listening posts. While this provides more feedback, it still leaves
the organization wanting for successful business outcomes.
Why? Because in most cases other CX and organizational
competencies are holding them back.
10+
47%
59%
9
48%
8
Number
of Data
Sources in CX
Monitoring
Program
42%
7
6
5
39%
41%
43%
4
42%
3
2
1
In the early days of CX, organizations were focused on
measurement—largely to get feedback at the individual
contributor level to drive performance improvement. Over time,
more listening posts were added to expand the ability to get
feedback from different channels, including call centers and
websites. The focus of CX then shifted to include relationship
studies and customer loyalty in addition to performance
improvement. While some organizations attempted to link CX
activities to business results, this was more of a bonus than
a central goal. However, as the graph to the left shows, more
measurement in and of itself does not equal more direct impact
on business results.
36%
39%
FIGURE 2: Number of data sources does not increase program effectiveness.
Source: CXEvolution MaritzCX global study, 2015
THE OTHER MEASUREMENT TRAP: WHIZ BANG
METRICS DON’T SOLVE THE PROBLEM EITHER
A number of years ago we were introduced to NPS, which in
some ways heralded an era of greater focus on CX impact
on the business. The C-suite began to care more about CX
because there was a correlation to business outcomes. Since
that time, numerous metrics have been introduced by industry
consultants. These introductions have led to internal arguments
and teeth gnashing over which metric to use in a CX program
to drive business results. The truth of the matter, however, is
that they are wasting valuable time focusing on the wrong thing.
As the chart below shows, the choice of metric has virtually
no impact on whether the CX program is successful at driving
business outcomes.
Source: Markets and Markets “Customer Experience Management Market” report
Source: LinkedIn Advanced Search query on “customer experience” in current title October 28, 2015
3
Source: Temkin Group State of the Voice of the Customer Programs, 2015
4
Source: CXEvolution MaritzCX global study, 2015
1
2
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PAPER CXEvolution Study Results
% who say their CX program is very successful at
driving business results by primary metric used
Customer Effort Score
People in my organization are more concerned with getting
a good CX score than creating a great customer experience
57%
Overall Satisfaction
N
48%
7%
St
ro
ng
Ag ly
re
e
49%
29%
Ag
re
e
Customer Index
St
ro
D ng
is ly
ag
re
e
50%
34%
24%
ei
th
N er
or A
D gr
is ee
ag
re
e
Loyalty
ag
re
e
6%
51%
D
is
NPS
FIGURE 3: The metric decision is largely inconsequential.
Source: CXEvolution MaritzCX global study, 2015
FIGURE 4: Percentage of organizations more concerned with score than
customer experience. Source: CXEvolution MaritzCX global study, 2015
Furthermore, the focus on metrics can often be
counterproductive. Many organizations reward their teams
based on reaching a specific target score on their chosen
metric. Unfortunately this leads to unwanted behaviors such
as asking for a score or giving away merchandise or services.
In short, it creates score chasing. Employees often feel that
their organizations are more focused on the score than actually
improving the experience for their customers.
Results from the CXEvolution study not only point out the failure
of strategies that use measurement disciplines alone, but also
provide insight into what a successful formula for CX entails. As
part of the CXEvolution model, MaritzCX examines 14 specific
competencies across six dimensions of CX—all of which have a
direct impact on CX performance and business success.
Response
Customer
Hiring & Training
Rewards
Discretion
Structure
People
Design
Governance
Culture
Belief
Commitment
Sources
Integration
Information
Processes
Design
Application
Knowledge
Document
FIGURE 5: CX maturity is determined based on an evaluation of an organization’s people,
information systems, processes, structure, customer focus, and culture.
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PAPER CXEvolution Study Results
BUILDING ORGANIZATIONAL COMPETENCE
MAKES THE DIFFERENCE
While adding more touch points to your program is important,
as are metrics that are both consistent and capable of creating
alignment, they do not—in and of themselves—drive CX
improvement that impacts the bottom line. Our validation
research shows that the 14 competencies do, in fact,
distinguish between companies that simply want to drive
business outcomes with their CX programs and those
who actually do. Below are graphics that show the results
from two of the 14 competencies: process documentation
and customer response.
When it comes to process documentation, just one in four
respondents say that their companies document customerrelated processes very consistently. However, two-thirds of
these folks report that their CX programs have been very
successful at impacting business results. This is 2X the level
of success seen for companies that are less consistent in their
process documentation. While there are very few companies
with no documentation of processes, the data suggests that
doing something halfway may in some cases be worse than
doing little or nothing at all.
% of Firms
Very consistently
applied processes
Fairly consistently
applied processes
Some
documentation, but
applied inconsistently
No/few processes
% “very successful” in
impacting business results
28%
66%
40%
26%
36%
32%
6%
FIGURE 6: Program success happens only when
processes are applied very consistently.
Source: CXEvolution MaritzCX global study, 2015
5
48%
For customer response, the difference in business impact is
even more significant. Customer response programs typically
include follow up with customers who have experienced a
problem or expressed a desire for contact. This is often referred
to as “customer recovery,” and these programs typically involve
using a case management tool. But some companies have gone
beyond customer recovery and have begun to use CX tools to
anticipate when a customer may encounter an issue—and use
customer response systems to proactively meet their needs.
Companies on the cutting edge of this competency have taken it
one step further and are using these tools to identify next steps
in the customer journey and proactively support customers,
unlocking significant growth opportunities. The data from the
validation research shows that having an integrated, systemic
approach to customer recovery yields improved business impact
over ad hoc or siloed approaches, but a select few achieve
even greater impact. Among those few companies (14%) that
are addressing both recovery and opportunities proactively,
three out of four report they have been very successful at
driving business outcomes with their CX programs, compared
to just half of those who have integrated customer recovery
efforts only.
% “very successful” in
impacting business results
Respond systematically,
anticipate problems and
other needs
% of Firms
Respond systematically
and anticipate problems
16%
Fully integrated
customer follow
up across the
organization
20%
Basic Follow up
procedures not
fully automated or
integrated
30%
35%
Squeaky wheel approach
16%
35%
We guess or do very little
3%
14%
75%
55%
48%
49%
FIGURE 7: Impact on business success when customer engagement anticipates
problems and needs. Source: CXEvolution MaritzCX global study, 2015
MARITZCX.COM
PAPER CXEvolution Study Results
THE CXEVOLUTION FRAMEWORK
Our CXEvolution maturity framework is rooted in deep expertise in the CX industry and based on sound organizational design
principles. It is comprehensive and holistic. Most importantly, it is validated against business results using a large global
study (over 4,000 respondents worldwide) of CX practitioners and front line employees.
Based on the results of our large-scale, global CXEvolution study and specifically the assessment of the 14 CX competencies,
MaritzCX developed a framework that assesses an organization’s current level of CX maturity. This framework allows companies
to not only understand the maturity of their CX efforts, but also how they compare with others in their industry, as well as those
who are at a similar stage of CX maturity across industries.
Most importantly, the framework and underlying competencies provide a basis upon which companies get not only a diagnosis
of their current CX maturity, but also a prescriptive roadmap on how they can evolve and advance.
CXEvolution Stage
Business Outcome
Enculturate
Align
Solve
Standardize
Respond
Measure
Investigate
Apathetic
CXEvolution™ Maturity
FIGURE 8: CXEvolution Maturity Curve
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PAPER CXEvolution Study Results
CX MATURITY YIELDS BIG RESULTS
While there has long been widespread belief that greater customer-centricity and a more robust CX program will lead to better
business results, for most companies this has been more of a dream than reality. The MaritzCX CXEvolution framework cracks
this code. As the graphic below shows, companies that have reached the highest level of CX maturity are 3X more successful at
driving significant financial improvement and customer retention than companies in the bottom half of the maturity framework.
Considering that 87% of companies in our benchmark study reside in the first four stages of the maturity framework,
it is not surprising that for most companies the goal of making CX the differentiator they need it to be remains elusive.
% Businesses Reporting
Significant YOY Improvement
70%
60%
FINANCIAL PERFORMANCE
3X
CUSTOMER RETENTION
64%
58%
54%
50%
44% 44%
40%
87% of companies are here
30%
48%
39% 40%
25%
20%
20% 21%
10%
22%
17%
18%
20%
14%
0%
Apathetic
Investigate
Measure
Respond
Standardize
Solve
Align
Enculturate
Figure 9: Companies that are at the highest levels of maturity are 3 times more likely to have improved
financial results and retention as compared to those in the lower half of the maturity curve.
WHAT’S YOUR LEVEL OF CX MATURITY?
Most CX pros probably think they know how their organization is doing in terms of CX maturity. But they may not know
what specific competencies are holding them back—and what specific actions they can take to realize better business
outcomes. The guide below provides a general idea of what defines companies that are in each stage of the maturity
framework and what it takes to move to the next stage.
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PAPER CXEvolution Study Results
1
APATHETIC
Companies at the apathetic stage have no listening posts, few
customer processes, and a CX organizational structure that
is basic and not well-defined. Customer focus is subordinate
to other business imperatives like profit generation or supply
chain efficiency. These organizations may be delivering a good
customer experience, but it’s not an area of deliberate focus.
Key to moving up: take some time to understand what you’re
missing by not focusing on CX.
3
MEASURE
At the measure stage the organization’s CX knowledge and
application are still inconsistent, but customer processes are
clear and documented, and the organization has begun to
see financial results. There is likely centralized oversight in
front-line decision-making, but no guiding customer strategy.
Functional groups are often at odds, and executive support
can be lackluster, causing the fervor of a few to fizzle out.
Key to moving up: deploy a transactional measurement
program with ongoing metrics.
5
STANDARDIZE
2
INVESTIGATE
Companies at the investigate stage have created some customer
processes, but typically don’t apply these processes consistently
across the organization. Information collection is ad hoc or
anecdotal, and customer focus is sporadic. In most cases, this
inconsistent approach to CX is worse than doing nothing at all. By
only dipping their proverbial toes in the water, these organizations
often set customer expectations they can’t meet.
Key to moving up: institutionalize successful “guerilla” CX tactics
and ensure consistent application.
4
RESPOND
Companies in the respond stage have well-documented processes,
and a strong focus on service recovery. Case management systems
greatly mitigate negative word-of-mouth, but are typically not
connected to more integrated CX systems. Management support—
and customer metrics in employee performance goals—are on the
rise, but autonomy on the front line is still lacking.
Key to moving up: empower employees with integrated customer
data and build customer metrics into performance evaluations.
6
SOLVE
The standardize phase is the phase at which most organizations
peak. Processes are standardized, and formative data integration
leads to customer metrics and incentives for meeting them. Front
line employees have some discretion to resolve customer issues,
and behavioral standards are put in place. A chief customer
officer may be named, but with limited power and influence.
Organizations in the solve stage are focused on understanding and
resolving root causes. Employees are hired based on their customer
skills in addition to traditional qualifications. Customer data is
integrated, and processes are designed to balance customer focus
with efficiency. The pursuit of a CX “score” gives way to a more
holistic approach that links metrics, outcomes, and incentives.
Key to moving up: extend focus on resolving individual
customer problems to resolving larger, more systemic issues.
Key to moving up: centralize customer experience in a single
governing body, and empower them with integrated data and
predictive analytics.
7
8
ALIGN
For organizations in the align stage customer experience
becomes a centralized function that touches all parts of the
organization. Rather than tying incentives to scores, customer
focus is universally understood to be good business. This
“customer-first” focus permeates process design, and all
employees understand their role in enabling it. Data is
consolidated and disseminated to anticipate and prevent
problems before they occur.
Key to moving up: focus on hiring employees who have an
innate understanding of CX and leverage technology not
only to prevent tomorrow’s problems, but to spark
tomorrow’s innovations.
8
ENCULTURATE
At the enculturate stage – the pinnacle of CX maturity, customer
focus is ingrained in the very fabric of the organization—and
customer data drives organizational decision-making. Technology
is used to connect customer metrics and anticipate what will
delight customers. Customers are often involved in measuring the
organization’s progress, and the need for a centralized function to
oversee customer efforts diminishes.
Key to moving up: the enculturate stage is a journey and not a
destination. To keep growing and improving, these organizations
should focus on CX innovation and make sure their organizations
are flexible enough to adapt to an ever-changing world.
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PAPER CXEvolution Study Results
FINDING YOUR CX SUCCESS
According to a recent study by Gartner, 89% of companies will
compete mostly on the basis of customer experience in 2016,
nearly a three-fold increase from just five years ago.1 More than
ever, CX is a strategic priority for companies. CXEvolution goes
beyond assessing measurement and tools to understanding
the very organizational foundation that determines the relative
success of CX efforts.
In the decades of work we have done with organizations around
the globe, we’ve seen one overwhelming need: a framework
within which to assess an organization’s CX progress—and
against which to evaluate new investments. You may think that
pursuing revenue goals, innovating your product, or achieving
greater operational efficiencies are the most fruitful areas
for investment. But the truth is that CX underpins and drives
success in each of these areas. In other words, get the customer
experience right and mature your CX programs and efforts, and
all else follows.
The prescriptive results allow CX pros to more effectively assess
their own programs and have the conversations with company
leadership that will be key to driving future success.
The CXEvolution framework and assessment tools provide not
just an assessment of a company’s level of CX maturity, but also
a comprehensive understanding of why they land where they do
and a roadmap to move up the scale.
1
In the end a tool like the CXEvolution Maturity Model and
Organizational Assessment helps you focus on what matters,
set clear objectives for your program, gain executive buy-in and
commitment, and align the organization behind your efforts.
Source: Gartner for Marketing Leaders: Gartner Surveys Confirm Customer Experience is the New Battlefield
Assess your company’s CX maturity level by taking your
personal assessment now at www.maritzcx.com/assessment
To demo a product or to contact MaritzCX call
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MaritzCX believes organizations should be able to see, sense and act on the experiences and desires of every customer, at every
touch point, as it happens. We help organizations increase customer retention, conversion and lifetime value by ingraining customer
experience
intelligence and action systems into the DNA of business operations. For more information, visit www.maritzcx.com.
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