Imagine a scenario in which your company can enjoy a revenue growth rate 3-fold higher than your peers! And you wouldn’t need to sacrifice on price point, nor would you need to cut back on human capital – in fact, your employee engagement plays a major part in this instance, as it would be 1.5 times higher.
While this sounds like the beginning of a cheesy 1980’s sales pitch, , I’m here to tell you that it’s actually an achievable reality for companies if they just prioritise the customer experience (CX) .
And it’s backed by research!
Customer-centric brands report profits that are 60% higher than those that do not focus on CX. Additionally, companies that effectively utilise customer journey maps can see revenue increases of 10-15% while reducing service costs by 15-20%.
Customer experience refers to ALL the interactions a client has with an organisation that determines how they perceive it. I emphasise ALL, because it’s the unified approach that creates the seamless experience for the customer, and its golden thread throughout this blogpost.
To achieve unity (the ALL) and enjoy the kind of growth mentioned in the scenario above, the number one area that organisations need to prioritise is breaking down silos.
What is siloed thinking?
Siloed thinking in a business is like a house where each room has a locked door, and the occupants of each room never really communicate with each other. Even though they all live under the same roof, they each have their own supplies, routines, and goals. This lack of interaction prevents the housemates from sharing resources, solving problems together, or even realising that they’re all working toward the same overall objective: maintaining the house. As a result, the house operates inefficiently, with duplicated efforts, missed opportunities, and a lack of unified direction.
While siloed mentality is made pretty clear in the above analogy, what’s not often addressed is just how common it is for siloed mentality to creep into an organisation. I call it a silent killer, because so often it’s an issue that goes completely unaddressed for far too long, simply because no one is even aware that it’s an issue! That’s how easy it is for us to get stuck in our own bubbles.
What’s CX got to do with silos?
In short. Everything! Silos can significantly impact the ability to deliver a seamless and positive customer experience, because not everyone in the company is on the same page. Think about a time when you’ve been contacted by a call centre agent who asks you to provide information that you’ve already given to the company previously. Or when you call your bank and constantly get put through to different departments, receiving conflicting messages each time. This is a frustrating experience for the customer, and indicative of the departments not speaking to one another or operating as a holistic unit.
As customer experience specialists, siloed thinking in companies has to be one of the biggest problems we see companies facing. There’s a fundamental knowledge gap that’s needs to be filled when it comes to understanding just how much havoc silos wreak on the customer journey. I believe a big part of this knowledge gap stems from not being able to clearly articulate the difference between customer service and customer experience ( customer service typically pertains to a single interaction – such as one interaction in one department), while the customer experience is the ‘entire experience’ a customer or client has with the company, from start to finish. Previous blogpost on this here.
Take a look at the list below, and see how silos affect the customer experience and why addressing them is so important:
- Missed Opportunities: Without a unified view of the customer, their wants, and their needs, it’s easy to miss opportunities for upselling, cross-selling, and delivering tailored experiences.
- Inconsistent Metrics: Different departments may use varied metrics to measure performance, leading to inconsistent evaluations of customer satisfaction and engagement. What’ working in one department, may not be working in another.
- Low Morale: Employees working in silos may feel disconnected from the broader goals of the company, which can lead to lower morale and engagement. And engaged employees are a critical part of delivering on CX.
- Misaligned Customer Experience Strategy: Siloed departments often pursue their own goals, which may not align with the overall customer experience strategy. This misalignment can undermine efforts to provide a cohesive and seamless customer experience.
- Barrier to Innovation: Cross-departmental collaboration is essential for innovation in CX strategies, as it enables ideas to be exchanged and information to flow between departments. Working in silos stifles this creativity.
To end off, I’ll leave you with a quote from American Business Management author, Patrick Lencioni, which accurately highlights how ending siloed mentality is only possible if ALL are aware and willing.
“The most well-intentioned, well-designed departmental communication program will not tear down silos unless the people who created those silos want them torn down.”
