The Customer Experience: A Strategic Imperative for Boards

Board Perspectives — Issue 199

When products and services are highly competitive, high cost or emotionally driven, customer experience is more than just a differentiator. As a key component of sustaining growth and market leadership strategies, it merits the board’s close attention.

Few initiatives have a more direct impact on revenue growth, profitability, brand image and competitive positioning than a superior customer experience (CX). Inextricably linked to an organization's strategic objectives, CX underpins its innovation, market expansion, and operational efficiency initiatives. Its primary purpose is to drive brand loyalty, pricing power and sustainable top-line performance.

CX is a game boards must play to win

CX is a strategic priority for corporate boards because it directly impacts long-term success. By focusing on CX initiatives, boards can help:

• Drive organizational alignment
• Leverage data for continuous improvement
• Ensure compliance with evolving regulation
• Position their organizations for sustained growth

The question arises as to how companies should cut through the noise, engage and capture attention at every point of their customers’ buying journey. Herein lies the board’s interest: Do directors really understand the high-tech, high-touch modus operandi with which the organization connects its brand promise to the customer experience it delivers every day? This understanding gets to the very essence of how an organization differentiates itself with its customers.

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