In today’s competitive business landscape, companies constantly seek ways to lower costs, increase revenues, and improve service to remain relevant and profitable. One proven approach to achieving these goals is by adopting the Customer Experience Management Method (CEMMethod), which includes the Triple Crown approach; this focuses on delivering Successful Customer Outcomes (SCOs) through North Star Alignment and Outside-In thinking.
This article will discuss how the CEMMethod, combined with innovative technologies such as AI, Digitization, and Machine Learning (ML), can lead to significant cost reductions and overall business improvement.
The Triple Crown Philosophy
The Triple Crown management philosophy focuses on achieving three key outcomes: lower costs, higher revenues, and improved service. This is accomplished by shifting from an Industrial Age mindset, which emphasizes internal processes and efficiency, to an Outside-In perspective that prioritizes customer needs and experiences.
The Outside-In approach, championed by thought leaders like Steve Jobs, Jeff Bezos, Tony Hsieh, Richard Branson, and others, involves understanding the Key Customer Outcomes (KCOs) and aligning all aspects of the organization to deliver these outcomes. This North Star Alignment ensures that every decision and action contributes to customer success, ultimately leading to Triple Crown Benefits.
Successful Customer Outcome Canvas
A crucial tool in the Triple Crown methodology is the Successful Customer Outcome Canvas (SCOC). This framework helps organizations identify and prioritize the most critical KCOs, the foundation for all business activities. By focusing on these KCOs, companies can eliminate unnecessary work, streamline operations, and reduce costs.
Outside-In Strategic Matrix
The Outside-In Strategic Matrix (OISM) is another essential component of the Triple Crown approach. This OISM provides a comprehensive view of the organization’s current approach to CX improvement and the actual Customer’s real experience. It is often initially reported that organizations have an incorrect definition of Customer Experience in seeing things from their perspective rather than the customers.
Through the OISM, companies can create a roadmap for achieving SCOs and transforming their businesses.
The Six Step Innovation process (6Si) supports the Triple Crown approach, which guides organizations through adopting Outside-In thinking and delivering SCOs. These steps involve:
- Defining the target area: Identify the process or area that needs improvement.
- Identifying Customer Interactions: Determine the obstacles and challenges that hinder the delivery of SCOs.
- Describing Actions: Develop strategies and solutions to eliminate Customer Interactions and achieve SCOs.
- Conducting Cost and Benefits Assessments: Analyze the potential impact of each action on costs, revenues, and service quality.
- Implementing the Innovation improvements
- Migrating the Cutomer Experiences to the new way
Prioritize the most effective actions based on their potential for achieving Triple Crown Benefits.
Customer Experience Management Method (CEMMethod)
The Customer Experience Management Method (CEMMethod) is a comprehensive framework developed by the BP Group and Steve Towers that combines the principles of Outside-In thinking, North Star Alignment, and Triple Crown Benefits. Initially identified in the ’90s by then SVP of Research at Gartner, Jim Sinur, the Triple Crown approach helps organizations adopt a customer-centric approach, leading to significant cost reductions and improved business performance.
Customer Performance Landscape
The customer performance landscape is a term used to describe the overall environment in which customers interact with businesses. It includes factors such as the customer’s needs, expectations, and preferences, as well as the business’s products, services, and overall customer experience.
The customer performance landscape constantly evolves as customers become more demanding and businesses strive to provide better experiences. As a result, it is essential for companies to continually monitor and adapt to the changing landscape to remain competitive.
There are several factors that businesses can consider when assessing the customer performance landscape. These include:
- The customer’s needs and expectations: What are the customer’s needs and wants? What do they expect from the business?
- The business’s products and services: How do the business’s products and services meet the customer’s needs and expectations?
- The overall customer experience: What is the customer’s overall experience with the business? Is it positive, negative, or somewhere in between?
By understanding the customer performance landscape, businesses can make informed decisions about improving their products, services, and overall customer experience. This can lead to increased customer satisfaction, loyalty, and revenue.
Examples of Cost Reduction Through the CEMMethod
Here are three examples of how adopting the CEMMethod and Triple Crown philosophy can lead to significant cost reductions:
- Insurance claims processing: An automotive insurance company significantly reduced costs by streamlining its processing system, focusing on delivering the Successful Customer Outcome of a quick and hassle-free claims experience. The company achieved cost savings and improved customer satisfaction by eliminating unnecessary work and adopting AI and ML technologies.
- Global B2B supply chain: A global B2B company rationalized its supply chain and shifted its focus toward the Successful Customer Outcome for its clients, resulting in significant cost reductions. By aligning all aspects of the organization toward customer success, the company was able to eliminate inefficiencies and optimize resources.
- Pharmaceutical technology: A pharmaceutical company reduced costs by 66% by updating its technology infrastructure and introducing AI to handle labor-intensive tasks. This shift allowed the company to focus on delivering the Successful Customer Outcome of providing high-quality medications to patients more efficiently and cost-effectively.
- Global Utility company: In an extensive digitization program, a Customer Performance Landscape was built to demonstrate the connection between IT systems and the delivery of the Successful Customer Outcome. Within a month, it was identified that seventeen of the existing systems no longer contributed to the newly articulated SCO and, after analysis, could be removed. The resulting benefits included the Triple Crown with similar efficiency, effectiveness, and productivity improvements.
Embracing AI, Digitization, and Machine Learning (ML)
Adopting innovative technologies such as AI, Digitization, and ML is crucial for organizations looking to achieve Triple Crown Benefits. By automating repetitive tasks, optimizing resources, and uncovering valuable insights from data, these technologies can help companies reduce costs and improve customer experiences.
AI and ML in Customer Service
One effective way to reduce costs and enhance service quality is by implementing AI and ML technologies in customer service operations. Smart Chatbots, for example, can handle routine inquiries and resolve issues quickly, freeing up human agents to focus on more complex tasks. This approach reduces operational costs and improves customer satisfaction and loyalty.
Digitization in Supply Chain Management
Digitization can lead to significant cost reductions in supply chain management by streamlining operations and increasing visibility across the entire supply chain. Companies can optimize inventory levels, reduce lead times, and minimize waste by adopting digital solutions such as IoT devices, predictive analytics, and real-time data sharing.
The CEMMethod hooked to the Triple Crown philosophy, focusing on delivering Successful Customer Outcomes through North Star Alignment and Outside-In thinking, offers a proven approach to reducing costs, increasing revenues, and improving the service quality. Organizations can transform their businesses, achieve Triple Crown Benefits, and thrive in today’s competitive market by adopting this methodology, along with innovative technologies like AI, Digitization, and ML.
BPGroup.org website: https://www.bpgroup.org
CXObsession Blog: https://www.cxobsession.com
Author’s website: https://stevetowers.com
Social media links: Steve Towers: https://linktr.ee/stevetowers
LinkedIn: Jim Sinur: https://www.linkedin.com/in/jimsinur/
Steve Towers, an expert in customer experience, enjoys spreading his enthusiasm for this field through coaching, keynote speeches, books, and social media content.
He helps companies win the triple crown – the simultaneous ability to increase revenues, decrease costs, and enhance service – through the CEMMethod, which is now in version 15.
With over three decades of experience working with large enterprises worldwide, Steve has distilled the successful strategies of top-performing organizations into a proprietary methodology that can be easily imparted to CX teams and executives.
His forte lies in envisioning the future of customer-centricity, customer experience, process management and realizing long-term benefits from business transformation. Steve’s approach combines customer-focused thinking, cutting-edge technologies, and a human touch.