Organizations Will Sustain CX Success by Infusing Customer Experience Capabilities Across Their Entire Enterprise
Temkin Group, a leading market research and consulting firm that helps organizations transform their customer experience (CX), released a new research report: “The Federated Customer Experience Model.” The report examines the evolution of CX efforts within large organizations.
When a company starts its customer experience (CX) journey, it often establishes a centralized team to build the necessary internal capabilities and catalyze change. However, that team’s effectiveness can be limited by a number of things, including divided attention within lines of business and a lack of resources to reach across the company.
In its 2012 report, The Future of Customer Experience, Temkin Group correctly identified the need for companies to focus more on embedding CX capabilities across departments and functions through a Federated CX model. This new report outlines the path that companies will take to get there.
“Centralized customer experience efforts have been a great catalyst for change, but a Federated CX model allows organizations to embed great practices throughout their organization,” states Aimee Lucas, Vice President of Temkin Group.
Temkin Group defines a Federated CX model as follows:
A structure for enabling and coordinating a distributed set of customer experience capabilities.
In a Federated CX model, a company is able to generate a greater impact from its CX efforts because it can tailor best practices to work within individual parts of the business, embed CX deeper into the company’s culture, and leverage centralized learnings to affect significantly more decisions and processes across the company.
Temkin Group has outlined three components to a Federated CX model:
- CX centers of excellence. Organizations must maintain a strong set of capabilities in some areas. Rather than having them all reside in a centralized team, organizations can develop centers of excellence (COEs). COE members will then continue to build capabilities, while sharing best practices and supporting the rest of the organization in those areas.
- Enterprise CX coordination. Within a federated model, a centralized CX team serves as a coordinator, overseeing the setting of collective goals and objectives, enforcing enterprise-wide standards to prevent localized deviation, and acting as a hub for cross-pollination of ideas and success stories.
- Distributed CX skills and mindset. Dispersing CX capabilities through COEs does not eliminate the need to infuse a customer-centric mindset and skills across the company. Sustainable CX success will only happen when everyone in the organization understands how they each make the desired customer experience a reality.
The report describes how organizations will evolve through four stages:
- Stage 1: Centrally-Driven
- Stage 2: Cross-Functional Participation
- Stage 3: Distributed Expertise
- Stage 4: Federated CX
“Customer experience is not something that organizations can layer on top of everything else that they do, it needs to be woven into the fabric of their operating model,” states Bruce Temkin, Managing Partner of Temkin Group. “A Federated CX model is the natural path to get there.”
The report “The Federated Customer Experience Model” can be downloaded from the Customer Experience Matters® blog, at ExperienceMatters.wordpress.com as well as from the Temkin Group website, www.TemkinGroup.com.