Why Organizations Struggle to Create Frictionless Digital Experiences

In an era where customer experience (CX) can make or break a brand, why do many organizations struggle to deliver seamless and frictionless digital experiences? 

Despite widespread recognition of its importance, the execution often falls short.

We covered this topic on a recent episode of The Frictionless Experience podcast with our guest, Michael Hinshaw. He's been named one of the Top 20 Customer Experience Leaders to Follow and co-authored the bestselling book Smart Customers, Stupid Companies: Why Only Intelligent Companies Will Thrive, and How to Be One of Them.

Michael's journey from growing a company to $300 million in three years to consulting for industry giants like Intel, Cisco, and Microsoft has equipped him with unparalleled insights into driving better customer experiences.

What Exactly is Customer Experience?

One theme of our discussion was the confusion surrounding the definition of customer experience. 

Michael shared a humorous anecdote about encountering "customer experience parking" at a tech company, illustrating how different organizations interpret CX differently. This funny yet poignant story underscores how organizations often have a vague or misguided understanding of what customer experience truly entails.

He notes that even though his book was published over a decade ago, businesses still grapple with fundamental misunderstandings about CX.

So, while the term "customer experience" is broadly used, its interpretation often diverges significantly across different organizations.

Misunderstanding Customer Experience

At its core, customer experience is about the perceptions, feelings, and expectations customers develop through their interactions with a brand. These interactions can be direct, proactive, reactive, or through third-party conversations and online reviews. 

Michael emphasizes that CX lives "between the ears" of customers—it's a perceptual and emotional phenomenon that cannot be boxed, packaged, or sold.

Michael told a story about a visit to a tire store.

"I was getting my tires changed a year ago, and the manager gave me his card. I looked at it and said, 'customer experience manager.' And he's the manager of the experience in the tire store," Michael noted. "So he's absolutely a hundred percent correct."

A tire shop manager with the title "customer experience manager" accurately describes his role in managing the in-store experience. However, managing CX goes beyond titles and extends to systematically enhancing every touchpoint that affects customer perceptions.

Michael emphasizes that true CX is the sum total of customers' perceptions, feelings, and expectations built through all their interactions with a brand—direct, indirect, proactive, and reactive.

The Role of Technology in Creating Frictionless Customer Experiences

Technology plays a dual role in CX—it can both complicate and simplify efforts.

On one hand, innovative technologies have revolutionized how companies interact with customers. AI-powered chatbots, personalized marketing algorithms, and data-driven insights have opened new avenues for enhancing CX.

On the other hand, inadequate implementations of technology can hinder CX efforts.

For example, automated customer service systems that fail to resolve issues efficiently can frustrate customers and tarnish their experience. The key lies in leveraging technology thoughtfully to create seamless interactions.

Bridging the Gap Between Intention and Execution

"The challenge that companies have is not actually customer experience; it's managing customer experience," Michael explains.

"What are the things that companies need to do to systematize and operationalize their ability to change how customers feel as a result of their experiences."

To truly excel in CX, businesses must align their strategies with customer perceptions and emotions.

Here are some practical steps to bridge the gap:

• Understand Your Customers: Conduct thorough research to gain deep insights into your customers' preferences, pain points, and expectations. This knowledge forms the foundation for effective CX strategies.
• Design Seamless Journeys: Map the customer journey and identify friction points. Use technology to streamline processes and create a cohesive experience across all touchpoints.
• Empower Your Team: Invest in training and resources to empower employees to deliver exceptional experiences. A customer-centric culture starts from within the organization.
• Leverage Data: Use data analytics to monitor and measure CX performance. Identify trends, track customer sentiment, and make data-driven decisions to continuously improve.
• Innovate Thoughtfully: While technology offers immense potential, it should be implemented with a focus on enhancing human interactions. Avoid over-automation and prioritize meaningful engagement.

The Power of Creating an Experience Operating System (XOS)

Michael's newly-released book, Experience Rules! The Experience Operating System (XOS) and 8 Keys to Enable It, co-authored with Diane Magers, provides a blueprint for creating what he calls an Experience Operating System. 

An XOS is a holistic framework designed to manage and optimize every interaction a customer has with your brand.

Unlike traditional approaches that focus solely on isolated touchpoints, an XOS integrates all aspects of customer engagement into a cohesive system. This includes not just direct interactions like sales or customer support but also indirect influences like social media mentions and online reviews. 

Why You Need an XOS

Creating an XOS isn't just about enhancing customer satisfaction—it's about driving business growth. Here are some compelling reasons why your business needs an XOS:

• Consistency Across Channels: An XOS ensures that every customer interaction, whether online or offline, aligns with your brand values and messaging.
• Data-Driven Insights: By integrating various data sources, an XOS provides actionable insights into customer behavior and preferences, enabling informed decisions.
• Operational Efficiency: Streamlining customer interactions through a single system reduces redundancy and improves operational efficiency.
  
  "What's really interesting is that when companies track this, they realize they're doing things, they're fixing things individually for customers, hundreds of times, the same thing," Michael notes, justifying investing in an XOS.
  
  
  
  "If we're able to look at the hundred times we're fixing it for a hundred customers, if we actually fix the process, we're going to eliminate that problem, and we're going to save ourselves a ton of energy because we got our customer service reps or whoever is going through heroic efforts every day to solve the same problem for different customers."
• Competitive Advantage: In a crowded market, a superior customer experience can set your business apart, fostering customer loyalty and advocacy.

How to Create an Experience Operating System

Creating an EOS may seem daunting, but breaking it into manageable steps can simplify the process. Here are six key steps to get you started:

1. Define Your Customer Experience Vision

Before building an XOS, you need a clear understanding of what you want your customer experience to look like. This involves defining your brand's core values and how they should be reflected in every customer interaction.

Ensure that every touchpoint—from your website design to customer support scripts—emphasizes cutting-edge solutions and forward-thinking approaches if your brand values innovation.

2. Map the Customer Journey

Create a detailed map of all customer touchpoints where customers interact with your brand. This includes everything from visiting your website and social media channels to purchasing and post-sales support.

As Michael explains:

Use customer journey mapping software to visualize interactions and identify potential pain points.

3. Integrate Customer Data

Collect and integrate data from various sources, including CRM systems, social media analytics, customer feedback, and more, to gain a comprehensive view of your customers.

Implement a Customer Data Platform (CDP) to unify data from different touchpoints and create a single customer profile.

4. Implement Technology Solutions

Leverage technology to streamline and enhance customer interactions. This includes AI-driven chatbots for customer support, personalization engines for marketing, and automated workflows for operational efficiency.

But Michael advises companies to take a "digital first" approach, not a "digital only" approach.

"If you're able to deliver digital experiences that solve most of your customers' problems and deliver against their expectations, you're going to reduce your cost of service delivery," he notes.

"But if you make it too hard for your customers to solve their problems, then you're going to not only increase your cost of service, you're going to upset them."

Companies like Cisco and Microsoft use AI-driven platforms to provide personalized customer experiences at scale.

5. Train Your Team

Your employees play a crucial role in delivering a consistent customer experience. Provide them with the training and resources they need to understand and execute your customer experience vision.

Conduct regular training sessions and workshops on customer service excellence, empathy, and effective communication.

6. Monitor and Optimize

An XOS isn't a set-and-forget solution. Continuously monitor customer interactions and collect feedback to identify areas for improvement. Use data analytics to measure the impact of your efforts and make adjustments.

Conduct periodic customer satisfaction surveys and use analytics tools to track key performance metrics, such as Net Promoter Score (NPS) and Customer Effort Score (CES).

XOS is an Investment Worth Making

Creating an Experience Operating System is a strategic investment that can pay significant dividends in customer satisfaction, loyalty, and business growth. By integrating all customer interactions into a cohesive system, you can deliver frictionless and consistent experiences that sets your brand apart.