Breaking out of the silo mentality

Customer centricity Breaking out of the silo mentality

Published on 29.06.2021 by Cyrill Luchsinger, CX Manager with Swiss Post

The structural crisis many companies are faced with requires a structural response. Individual measures are not enough. In addition to a vertical organizational structure, a horizontal, process-oriented approach that focuses on the customer experience and interactions between customers and the company is also needed.

It is generally agreed today that customer centricity is important. Properly incorporating CX management into a company’s organizational structure does pose challenges though. Why is that, and what’s the best approach?

Customer experience essentially comes down to striking the perfect balance between product and customer centricity. But the credibility gap is often wider than expected. Companies think they have a clear picture of their customers. Customers, on the other hand, have the impression that companies don’t really understand them. Because the customer journey is so fluid and dynamic, a lot of companies don’t even know how customers come to them.

This is where CX management comes into play as a company’s public image and self-perception is where the future of customer centricity lies. CX management helps us better understand the complexity of all these touchpoints, customer journeys and business processes. But the customer experience is about establishing a culture, and not just a tool that you introduce overnight. This is something everyone needs to be aware of and conveyed appropriately. It is a change process.

Breaking out of the silo mentality

One of the main reasons companies don’t really understand their clientele is their silo mentality. Each individual department – whether marketing, sales, customer service or logistics – is inward-looking in its approach. Customers want simple, fast and reliable services. To change this behaviour permanently, companies need to put themselves in the shoes of their customers. This requires adopting a top-down approach.

In other words, companies need to establish a customer-centric mindset – and across every department. The only way to break out of this deep-rooted silo mentality is by involving interdisciplinary teams in product development.

Establishing a customer-centred mindset and approach.

This requires companies to align themselves with their customers in their structure, behaviour and processes. Generally speaking, there are four key points to bear in mind:

Develop a common understanding of customers

Every department with either direct or indirect customer contact should be able to share their own insights to create a realistic image of the company’s clientele.

Establish interdisciplinary customer centricity

The project committees are backed by CX specialists who contribute methods, manage the development process and chair cross-functional discussions.

Set out roles and responsibilities

The understanding of the customer experience and performance pledge that have been decided on as a team are used to come up with design measures and responsibilities.

Delegate responsibility and empower staff

In addition to this customer understanding and the customer experience defined, it is important to empower staff to actually implement customer centricity in their day-to-day tasks.

The way different departments interact means that staff become customers in their own right. This in-house cooperation is the key to solving complex problems, whilst also being the biggest challenge.

Even though its implementation is down to everyone, CX management still has to be initiated at the highest level. It needs to be exemplified at managerial level, translated into employee targets and enshrined in the company’s culture.

A company can only undergo a permanent change if the core mindset and behaviour of every single employee also changes.

Insights and tips for implementing CX management
  • CX management must be incorporated into the strategy and the target systems of a company, cover all employees and be part of management development.
  • Customer expectations are fluid and dynamic, meaning we need to see ongoing CX analysis and for insights to keep coming in.
  • Essentially, when we talk about “experience”, we mean a journey. This is why we think in terms of experience management.
  • A lot of companies struggle to keep on top of their standard activities, and yet the customer experience mostly unfolds in the core processes of a company.
  • Empathy means constantly developing, being dynamic and evolving with your customers. Companies are put to the test on a daily basis.
  • The danger here is that companies end up not prioritizing these issues for cost reasons, especially in the face of existential crises.
Interesting

Cyrill Luchsinger, CX Manager with Swiss Post

Cyrill Luchsinger advises, writes blogs and gives talks on customer centricity. He tries to get companies thinking from a customer point of view and to make them more customer-focused. At Swiss Post he is a CX Manager for Business Development with Logistics Services. In addition to this area, he is also interested in digital transformation, innovation, digital ethics, equality and diversity and sustainability.

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