Forrester CX Conference: CX Investment Remains Core for Leading Brands

On June 21 and 22, Market Force participated in the Forrester Customer Experience (CX) conference in New York City. A report by Markets and Markets estimates that this space is due to grow to $8 billion by 2020, and certainly the level of commitment and investment by presenters validates that trajectory. I found the conference very valuable and walked away with a few key points that I’ll share with you. All of these points are framed by a keen focus by the world’s largest companies in creating cultures focused on exceptional customer experiences. 

  1. The customer is becoming increasingly powerful. George Colony, CEO of Forrester, put corporations on notice by claiming that we are now in an “existential crisis” with the increasing power of customers to voice their opinions and demand increasing levels of service. He believes that customers will increasingly judge corporation based on the state of their business technology and that software investments will be critical to success.
  2. Effortless customer experience requires vision. Vicky Jones at AT&T simply thrilled the audience with the bold and sweeping vision AT&T has for integrating large acquisitions like DirecTV with current mobility platforms to create an “effortless customer experience”. That focus is backed by AT&T’s CEO, Randall Stephenson. His commitment? Over $1 billion in budget to make that happen. Vicky reiterated that this is a “long game” with sustained investment and grit to make it happen.
  3. Design with simplicity as the core principle. Echoing the message from Vicky Jones, Mark McCormick, Head of User Experience at Wells Fargo, spoke to the power of simplicity in the design of products and experiences. “Simplicity is hard. Simplicity is noble”. He made an argument that products and experience that are complex or difficult to use “rob us of time time and confidence”.
  4. Map the customer journey to align the corporation. A presentation by Joana van den Brink-Quintanilha, Forrester analyst, compelled me to think again about the importance of customer journey mapping. This powerful tool makes it clear where every function and every employee plays a role in creating an effortless, simple customer experience. A good journey map will help create channel parity, simplify offers and pricing, and streamline platforms across multiple channels.
  5. Ask creative questions of your CX data to show ROI. Mike Dzura, EVP of GNC, presented a case study based on his experience as SVP of Operations at GameStop. He showed how analysis of CX data could predict top performing managers, clarifying where GameStop should make its talent investments and the strategy for growing game sales.

In summary, the conference emphasized the increasing importance of the Customer Experience, with companies like Ford, Wells Fargo, AT&T, Marriott, SiriusXM, American Express and Etsy emphasizing their own investments in time, money, and people...lessons for all of us. To understand more about Market Force’s solutions for prioritizing investments, see our strategic advisory workshops.

As Chief Strategy Officer, Cheryl aligns Market Force's strategic direction with our clients' strategic objectives. She oversees the North American client base, Analytics and Insights, Winnipeg Operations and Marketing. She has a Ph.D. in social psychology and broad business experience in both private and public companies.​

Create a Restaurant Measurement System That Produces Real Results

Measurements are the key enablers to drive accountability and effective business and consumer analytics, as well as to help companies grow and strengthen their business performance. When I led a team at McDonald's that was charged with developing and implementing a world-class measurement system that centered on the critical drivers of restaurant performance and customer satisfaction, there were specific key elements/enablers that made it so effective. Let’s take a look at them.

1. Management buy-in before all else

The first and foremost step in creating a measurement system for your restaurant brand is to obtain support from senior management. Like any major initiative a company undertakes, it requires funding, people resources and management support to address any pushback within the organization regarding the need or direction of the project.

After the business case has been made and approved by senior management, you then need to create a cross-functional team that represents all of the critical segments of the business that will either be impacted or able to add value to the process design. This is critical to ensure you receive the best input on the design and structure of the measurement tools and processes. Plus, it lends credibility to the process, and helps turn those involved in the project design into advocates and supporters of the end product.

 

2. Set achievable and actionable metrics

The next step is to sit down with your team and ensure that the metrics or targets for the components you’re planning to evaluate possess the following characteristics:

  • Actionable – Are they in the control of the people who are being measured?
  • Realistic – Are they achievable or too far fetched?
  • Targeted – Make sure the targets are designed around the critical drivers for your business and customers’ expectations
  • Data-friendly – Data must be captured at the unit level to help determine root-causes and assist in developing effective action plans
3. Outsource the feedback gathering

Enlist quality third-party partners to help you capture and evaluate customer feedback on your brand and service, to assess in-store performance relative to your standards, and to gather employee input on their day-to-day experiences (e.g. customer satisfaction surveys, mystery shopping audits and employee commitment surveys). This is typically a more cost-effective way to capture the data versus trying to do it internally, and these are professionals who do this all day every day.

4. Tap technology – don’t undertake it all yourself

Leverage technology wherever possible to capture, input and report data performance at all levels of the organization. Spend the time upfront to perfect this process because, in the long run, it will guarantee the data is captured efficiently and reported back to the appropriate people in a friendly, summarized format. Technology will also assure the reports and analytics (e.g. unit rankings, top and bottom performers, trending, etc.) are performed in a cost-efficient manner, as they can easily start eating up lots of man-hours. The other benefit is that your performance data will be available any time and any place your staff wants to access it.

 

5. Don’t skip the training

Once the reporting is finalized – or even alongside it – you should be developing a comprehensive training program to educate all of the people in the system on all the tools, processes and reporting and, even more importantly, making it clear how they can tap them to drive increases in performance. The key here is to communicate early and often to all of the impacted people, so they have a thorough understanding of what, why and how the new performance improvement system operates.

6. Review and review again

Lastly, it's critical that you periodically review the measurement system and processes that you decide upon to make sure they’re still current and relative. Don’t go too long without taking stock because you’ll quickly fall behind in a fast-moving industry. Any significant enhancements or changes should be implemented ASAP.

Keep in mind that developing an effective measurement system will take time and dedicated resources. It's a journey and customers may not notice the performance improvements over night, but rest assured that they will eventually take note. When approached correctly, it will be a valuable tool to help drive performance improvements at both the unit and system level.

Any organization with numerous locations spread out geographically, such as multi-location restaurant brands, needs a quality measurement system to help them measure and assess performance consistently and timely. These tools are also the key enablers that will help you react to problems quickly, determine if action plans are working and begin building an accountability culture throughout the organization.

 

Jerry Calabrese was responsible for a global restaurant measurement system that evaluated and helped to significantly improve the performance of 32,000 restaurants in 100+ countries in the period from 2002 to 2008. As VP of Restaurant Measurement at McDonald’s Corporation, his leadership and implementation of tools and processes were a key enabler and significant factor in the financial and operational turnaround of the company during his tenure that helped McDonald’s improve its performance and brand image during that time period.

Schedule a Briefing

To discuss your needs for improving performance for your multi-location brand, give us a call. We’d be happy to discuss best practices for measuring the customer experience and compliance to brand standards, using analytics to understand what matters most and the ROI for change, and technology solutions that integrate large quantities of data on one single platform. We look forward to a great discussion!

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