Monday, July 19, 2010

Obstacles to Customer Experience

A recent survey of business attitudes toward customer experience (I failed to note the URL) found that the majority of companies acknowledge the importance of customer experience, but cite a number of factors that prevent them from being able to invest in improving it. As I recall, the chief obstacle was cited as "competing priorities."

There were no details about what those priorities are, but I strongly suspect that they come down to one thing: short-term performance objectives.
  • A company that's seeks to boost sales will push products their customers don't want
  • A company that's seeks to increase its gross margin may reduce quality (without reducing prices) or increase prices (without increasing quality)
  • A company that's seeks to increase efficiency will gravitate toward procedures that are efficient for the employees, and may be burdensome to customers
There numerous "tricks" that a business will use to boost its financial performance for the current year or fiscal quarter, which are generally accepted as good business practices, but which at the same time are detrimental to customer experience.

That's not to say that fiscal performance is unimportant (it's the raison d'etre for a commercial enterprise) - but that if these short-term goals take precedence over the long-term success of the firm, the company will enjoy short-term success at the cost of long-term failure. And the problem is the delayed effect: a short-term gain overshadows the long-term loss. The immediate benefits of the short-term reward and reinforce the behaviors, and when the long-term effects are suffered, it's too late.

It strikes me that short-term, by-the-numbers management is very similar to another phenomenon: steroid addiction. The athlete who uses steroids gains a short-term performance boost, but wrecks their health in the long run. And it's difficult for him to abandon them, because it's such a quick and easy fix.

I have the sense it's entirely appropriate, both to the effect of these actions of a company's performance (short and long term) and the mentality of those who are attracted to such tactics.

But I'm well aware I've switched channels from exploring a problem to chasing down a metaphor, which indicates I need to stop typing.

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