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THE CHANGING

FACE OF CX
LEADERSHIP
A research report benchmarking
the evolution of customer
experience professionals

The changing face of CX leadership 1


CONTENTS
FOREWORD3

EXECUTIVE SUMMARY4

KEY TAKEAWAYS 6

RESEARCH FINDINGS 9

METHODOLOGY29

ABOUT MYCUSTOMER30
ABOUT TTEC31

ABOUT ECXO32

The changing face of CX leadership 2


FOREWORD
Customer experience (CX) management is arguably more important than ever.
Consumer behaviours and preferences have been dramatically influenced by the
pandemic, while the cost-of-living crisis is almost certain to significantly impact
buying habits. Businesses are now seeking to re-engage with customers that have
been irrevocably changed and their CX strategies will be crucial.

But of course, those that are tasked with leading CX management programmes will
themselves have been impacted by recent events. And it is those changes that this research
report focuses on - exploring how the roles and responsibilities of CX leadership have evolved
in the past two years.

It is a fascinating snapshot of CX leadership circa 2022, and enables CX professionals to


benchmark their own roles, responsibilities, requirements and experience with their peers.
And with some tantalising glimpses into what the future may hold for the future of CX
strategies, there is much here to digest - and plenty of evidence that CX management will be
up to the task of successfully understanding and re-engaging with the modern customer.

What we find in this report is that while CX leaders have had to contend with many
challenges, the profession is in rude health, with clear ideas about the technology and
resources required to respond to the adversity, and great optimism for the future.

Here at TTEC we focus on the challenges and opportunities for our clients with true vertical
market knowledge. We have a holistic approach to CX which means we bring technology and
humanity together to empower our clients to transform their customer journey.

Always bringing the best-of-breed, we really know what good looks like.

Enjoy!

Alistair Niederer
Head of EMEA, TTEC

The changing face of CX leadership 3


EXECUTIVE SUMMARY
MyCustomer’s 2022 The Changing Face of CX With that in mind, MyCustomer is once again conducting a
Leadership research report is based on a global study to explore customer experience leadership, examining
survey of 123 customer experience leaders across EMEA, the roles, responsibilities, teams and budgets of today's CX
North America and Asia Pacific. For the purposes of this leaders, and detailing how they have developed in the last
report, we are defining a customer experience leader two years.
as the senior professional that has chief responsibility
We have explored the paths that led them into the world
for the organisation’s customer experience programme.
of customer experience management, including training,
qualifications and previous work experience; we have
Two years ago MyCustomer conducted research looking
examined the scope and reporting lines of the programmes
at the role and responsibilities of CX leaders to reveal the
that they manage; we have uncovered details of their day-
commonalities and the differences between the key figures
to-day jobs, including the size of their teams and how they
running customer experience programmes. Since we
measure success; we have surfaced information about
conducted that study, the world and the CX profession has
their budgets and investment history/plans; and we have
changed dramatically, as we have experienced a pandemic,
investigated the results that their programmes are delivering
rapid digital transformation and a growing number of high-
as well as the challenges that they are encountering.
profile chief customer officer appointments.
And by comparing our 2022 findings to 2020, we are able
to see how the profession is developing and how it is faring
"Since we conducted that study,
under the considerable pressures of the past two years - an
the world and the CX profession has in-depth exploration of the evolution of customer experience
changed dramatically, as we have leadership at this point in time.
experienced a pandemic, rapid digital
transformation and a growing number
of high-profile chief customer officer
appointments."

The changing face of CX leadership 4


What our findings depict is a story of contrasts. On the one responsibilities of CX leaders remain fragmented and broad,
hand, the pandemic and the subsequent impact on business suggesting that there is still no clear blueprint for what
operations and commercial conditions appears to have had a a customer experience leader’s role is across the business
significant influence on many aspects of customer experience world. And the fact that organisational silos remain the
leadership - hampering resourcing and budgets, and biggest obstacle to CX success indicates that customer
complicating matters concerning technology and culture. experience leaders continue to struggle with driving the kind
of internal business change that could have a revolutionary
Meanwhile, the customer experience team’s position within
impact on customer experiences.
organisational structures also continues to change, with
reporting lines shifting further away from the CMO towards
the CEO. "It appears that the profession is
Yet at the same time, a great many of the characteristics destined to continue to be a broad
of customer experience leadership remain the same, as do church for the foreseeable future,
the ways they are managing their CX programmes. This is
with CX leaders still coming from
something of a mixed blessing.
a diverse set of backgrounds, albeit
To some extent this indicates that the profession has found its
predominantly marketing or service."
groove. For instance, it appears that the profession is destined
to continue to be a broad church for the foreseeable future,
with CX leaders still coming from a diverse set of backgrounds, Nonetheless, there are plenty of positive signs for the future
albeit predominantly marketing or service. And the average of the profession. Our respondents remain optimistic for
tenure of a CX leader also appears to be consistently five years the future, and anticipate greater investment and support in
or less before they move on to pastures new. the next 18 months, while the numbers of new professionals
joining the ranks of customer experience leadership indicate
But elsewhere, the lack of evolution means that some
just how attractive the occupation is becoming.
challenges highlighted in the last research two years ago
have still not been addressed. It remains a concern that so
few CX leaders are still attempting to monitor any financial
metrics related to their programmes. Elsewhere, the

The changing face of CX leadership 5


KEY TAKEAWAYS
It is a more challenging While CX budgets across many categories compared to two
"CX budgets are plateauing.
1 environment for 2 aren’t being cut, there years ago, and in particular analytics tools.
While half (51%) of CX
CX leaders are optimistic about the future,
customer experience are fewer customer leaders still say their
however - 60% told us that they anticipate that
leaders today than two experience leaders seeing their CX budget will rise in the next 18 months. budgets have increased
years ago, something that is their budgets increasing, during their tenure, this is
particularly noticeable when and a more cautious CSAT and NPS are the nearly a quarter lower than
it comes to the resourcing financial picture is 3 metrics most commonly the number that said their
of their CX programmes translating into fewer used to gauge customer budgets had increased when
technology investments experience programme we asked them in 2020."
There has been a downsizing of customer
experience teams since our last study. The CX budgets are plateauing. While half (51%) success – but there remain
number of customer experience leaders who of CX leaders still say their budgets have relatively few CX leaders
report that they are the sole member of their increased during their tenure, this is nearly
measuring its business value
team has doubled in the past two years (to a quarter lower than the number that said
22%), while the number of very large teams their budgets had increased when we asked with financial metrics at a time
(20+ staff) has halved to 10%. them in 2020. when demonstrating ROI could
The number of CX programmes that are Nearly a third (31%) now report that budget/ support their requirement for
investing in consultancy support has also investment is a major obstacle to their CX more resources
had a marked drop - only 19% currently use a programme’s success - up from 15% two
consultant compared with 31% two years ago. years ago. While NPS and CSAT are used by the majority
of CX leaders (73% and 67% respectively)
There is notably lower investment in
only a small number of respondents track
technology by CX teams. The CX leaders
financial metrics or ROI related to their CX
we surveyed in 2022 have been responsible
programmes (35% and 24%) - almost identical
for fewer tech investments than their 2020
numbers to 2020.
counterparts, with clear drops in investment

The changing face of CX leadership 6


At a time when there is growing financial Elsewhere, company culture is a growing
pressure on CX teams, and signs that there challenge, cited by 36% of those surveyed
are fewer resources available to CX leaders, in 2020, it is now reported by 44%, becoming
it is more important than ever that the ROI the second most common challenge.
of customer experience programmes can
Against the backdrop of rapid digital
be demonstrated.
transformation over the past two years,
technology has also become a much
In general, CX leaders greater obstacle to CX success according

4 are reporting fewer to respondents. Over a third (35%) of our


respondents said technology was an obstacle
benefits achieved as to CX success, compared to under a quarter
a result of their customer (23%) in our 2020 survey.
experience programmes,
while at the same time CX strategy, customer
reporting a growing number 5 insight and customer
of obstacles to CX success feedback are the three
biggest priorities for the next
The number of CX leaders reporting that
their CX programmes have delivered 18 months
improvements in CSAT has increased from
Customer insight has become dramatically
68% in 2020 to 73% in 2022, while there is also
more important - nearly half (49%) say that it
strong growth in the number reporting that
is a priority for the next 18 months, compared
there is a company-wide sense that customer
with only 16% that said it was a priority in 2020.
experiences are improving.
This is in line with the rising number of CX
Despite this, elsewhere there are some
leaders that told us customer insight is now
concerning drops. There are fewer CX leaders
one of their core responsibilities (now up to
reporting improvements in customer churn
76% of respondents).
(from 43% in 2020 to 26%), operating costs
(from 36% to 24%) and revenue associated There has been a similar spike in interest in
with their CX programmes (from 43% to 36%). data and analytics, which was cited by 45%
this year, compared with 20% in 2020. This
Organisational silos continue to be the most
could be a reaction to the aforementioned
common obstacle for CX leaders - cited by
drop in investment in analytics tools.
over half of respondents (55%).

The changing face of CX leadership 7


In terms of the CX accreditations
6 professionals themselves, 7 may be growing in
customer experience number, but they are
leadership remains a broad not growing in popularity,
church, with CX leaders with on-the-job experience
coming from a wide range taking precedence
of different backgrounds, over qualifications
though customer service
Nearly two-thirds (64%) have no formal
and marketing are the most customer experience qualification - almost
common. The breakdown is identical to the number from our 2020 study.
as diverse as two years ago, The number of different CX qualifications
with no clear pathway to CX and accreditations has risen over the past
As the profession The number of customer
8 matures, CX leaders 9 experience leaders that
two years, which appears to be eroding
leadership emerging
the dominance of the most recognised CX

Nearly a quarter (24%) of the CX leaders we


qualification, the CCXP certification, which are - naturally enough - report directly to the
10% of this year’s respondents possess,
polled have a background in marketing, and becoming more experienced, CEO continues to rise, while
compared with 18% two years ago.
nearly a fifth (18%) customer service. but the amount of new blood fewer are accountable to
Only 14% have always worked in the field entering the industry is also the marketing department,
of customer experience management - the "CX qualifications and
rising, painting a healthy with these findings reflecting
same number as in the 2020 report. accreditations has risen
picture of the industry some of the high-profile
Other backgrounds reported by our over the past two years,
organisational restructures
CX leaders include operations, business which appears to be eroding Over a third (37%) of the respondents have 10+
management and sales. years experience working in CX - up from 29% that have characterised CX
the dominance of the most in the 2020 study. over the past year.
recognised CX qualification,
But the number of respondents that are new
the CCXP certification, which to the industry has also increased - up from
The number of customer experience leaders
that report to the CEO has risen (42% now
10% of this year’s respondents 5% with one year or less experience in 2020
compared with 39% two years ago).
possess, compared with 18% to 10% in our latest study.
The number of CX leaders that report to the
two years ago." CMO has halved since 2020, down from 20%
to 10% in this year’s study.

The changing face of CX leadership 8


RESEARCH
FINDINGS

The changing face of CX leadership 9


BACKGROUND AND EXPERIENCE
What is the professional “Call centres have been established for 25-30 "There is no single
years now, and whilst CX itself is a newer term,
background of CX leaders? commonly recognised
it takes grounding and experience to properly
‘get it’,” he says. “You don't go straight to pathway to customer
There is no single commonly recognised
pathway to customer experience leadership.
working on an aeroplane as an engineer experience leadership.
without a three to four year apprenticeship,
Our 2022 research reveals that today’s
yet CX is often seen by many as something
Our 2022 research reveals
customer experience leaders hail from many
that is easy to do and quick to pick up. There that today’s customer
different backgrounds - just as fragmented
as when we conducted our 2020 research.
are nuances and judgments to it that come experience leaders hail from
with time spent doing it and seeing it being
many different backgrounds
Nearly a quarter of our respondents (24%) done, both well and badly.”
have a background in marketing, and 18% - just as fragmented as
Christopher Brooks, managing director of
from customer service, while 14% are ‘dyed in
Lexden CX, and a judge on MyCustomer’s
when we conducted our
the wool’ customer experience professionals.
annual CX Leader of the Year award 2020 research."
And while there are some minor variations -
programme has some concerns, however,
operations and business management now
that so few CX leaders come from a customer
accounting for larger numbers than two years
experience background.
ago, and service slightly less - the proportions
don’t vary significantly from the 2020 study. “It surprises me that we are still around 14%,”
In short, customer experience leadership he says. “I hope this doesn’t suggest that
remains a broad church. it is seen as a ‘stepping stone’ role to other
functional roles.
Keith Gait, leader at The Customer Experience
Foundation, emphasises that despite the “The point about there being no clear
fact that there are only 14% that have come pathway is the shortfall here for CX to be
from a CX background, it is no longer a sustained as a permanent role at senior
“new” profession.

The changing face of CX leadership 10


leadership. It needs to be established and The interesting footnote to these findings
Q1: Before becoming a CX leader, what was your predominant background
encouraged so that those looking ahead to is marketing’s continued influence on
discipline/training?
their careers can consciously collect evidence customer experience management.
and experience before they take on a senior Marketing and CX have had a long and
CX role.” complicated history, with many a customer
0% 5% 10% 15% 20% 25% experience programme managed by the
CMO in the past. A rash of recent chief
24%
"A rash of recent
Marketing customer officer appointments in huge
22% chief customer officer brands such as McDonald’s, Volkswagen,

18%
appointments in huge Wal-Mart and Walgreens indicates that
there is a shift in thinking taking place, with
Customer service
22% brands such as McDonald’s,
some of these brands even restructuring so
Volkswagen, Wal-Mart and that the marketing department now reports
It has always been 14%
customer experience 14%
Walgreens indicates that to the CX leader.

12%
there is a shift in thinking However, as our research shows, a good
Business
management 8% taking place, with some proportion of customer experience leaders
hail from marketing backgrounds themselves.
10%
of these brands even
Operations But with the success of CX programmes
1%
restructuring so that the so contingent on customer insights and

8%
marketing department now feedback, and with core CX practices such
Other as customer journey mapping pulling strongly
15% reports to the CX leader."
on such traditional marketing exercises such
6% as customer persona building, we should not
Sales
5% be surprised that marketing’s influence lingers.
And as we will see later, projects such as
3% customer insight gathering are only becoming
Service Design
3% of greater importance to CX leaders.

3%
Call/contact centre
7%
2%
IT
0%

0%
HR
3% 2022 2020

The changing face of CX leadership 11


What customer experience Q2: What CX qualifications do you have?
qualifications do CX
leaders have?
64% 66% None
Despite – or perhaps because of - the varied 1%
pathway to customer experience leadership, 1% 3% Other
nearly two-thirds (64%) have no formal
customer experience qualification. This 6%
proportion is almost identical to the number CCXP
that had no qualifications two years ago, 2022 2020 CX Academy Professional
suggesting that despite the maturing of
Certificate/Diploma in CX
the profession, experience and on-the-job
10% 13% CX University
training is much more highly valued than
CXS Certification
any CX accreditations by employers and/or
the professionals themselves. Forrester CX
18% 18%
Certification
Nevertheless, the number of different
accreditations has risen over the past
two years, a development that has eroded
the popularity of the most recognised
CX qualification, The Certified Customer
Qualifications that fall into the ‘other’ a hospital in the Caribbean will look very the Institute of Professional Development
Experience Professional (CCXP) certification,
category - which make up 18% of the answers different to a student experience programme (IPD). These are the models we should be
delivered by the Customer Experience
- include such diverse certifications as Six for a university in Poland. I am certain many considering if we are hoping for greater
Professionals Association (CXPA), which 10%
Sigma Black Belt, Qualtrics XM Institute and CX leaders feel the courses offered are not recognition and engagement in CX
of our respondents possess, compared with
Medallia’s Operational Customer Experience relevant to their role or priorities. There certifications.”
18% two years ago.
Management (OCEM) Certification. is also the aspect of quality. Many of the
Keith Gait adds: “There is no single
qualifications available even disagree on
Christopher Brooks can understand why the organisation that the industry has gathered
"There is much ‘grey’ and the purpose of customer-centricity or what
proportion of leaders with CX accreditation around over many years, it's very fractured. HR
for good reason. A CX is so low, but believes formal training could
customer experience is and includes.
have CIPD, marketing have IDM and CIM, and
programme for a hospital be important to the long-term prosperity of “We have several organisations providing it's very clear in those professions, and they
customer experience leadership. training certifications now. And there set the standard, and everyone knows what
in the Caribbean will look
is a keenness among those in the sector they are, and has to achieve them to succeed
very different to a student “Unlike health and safety or financial
to be recognised by our peers who and progress. We must develop that in this
compliance, customer experience is not
experience programme have professional certifications from the industry, or we will continue to be seen as
a standard solution. There is much ‘grey’
for a university in Poland." and for good reason. A CX programme for
Chartered Institute of Marketing (CIM) or an irrelevant and fluffy side of real business.”

The changing face of CX leadership 12


What CX experience in our latest study. It is a promising sign Q3: How long have you worked in the field of customer experience?
for the industry that growing numbers of
do the leaders have?
professionals are being attracted to customer
experience management.
With accreditations and qualifications out 10% 37% 5% 34%
of favour, on-the-job experience appears 29% Ten years
to be the name of the game, and the "Over a third (37%) of our 18%
or more
profession is well-stocked with highly- respondents have 10 years
experienced professionals. Over a third (37%) Two to
of our respondents have 10 years or more
or more experience working five years
experience working in the field of CX - up in the field of CX - up 2022 2020
Six to
from 29% with that same level of experience from 29% with that same nine years
in our 2020 study.
level of experience in our
One year
But at the other end of the spectrum, the 2020 study." or less
number of our respondents that are new to
the industry (with one year or less experience) 35% 32%
has also increased from 5% in 2020 to 10% While many of the respondents we polled
have many years of experience, there remains
a significant proportion of professionals that
are fairly new to the role in their present
Q4: How long have you been a CX leader at your current company?
organisation. Over a third (35%) reported that
they have been a CX leader at their present
employer for under a year. Only about a fifth
of our respondents have been in their role for 7% 46% 4% 42%
6+ years. 16%
12% Two to
Given the amount of time that many of our five years
respondents have spent working in the field
One year
of CX, the suggestion here is that there is
or less
presently a lot of movement within the CX
2022 2020
jobs market. But reflecting on the findings Six to
from 2020, we find that this is something that nine years
appears to have characterised the profession
for some time - rather than a symptom of the Ten years
many disruptions of the past two years. or more

35% 38%

The changing face of CX leadership 13


How mature are At the other end of the spectrum, a third Ricardo Saltz Gulko, founder of the European
of organisations now have programmes Customer Experience Organization (ECXO),
CX programmes?
six years or more old - a slight rise on two agrees that the number of new organisations
Despite our respondents boasting many years years ago, as you’d perhaps expect for a discovering customer experience
of experience, here we have a stark reminder maturing discipline. management continues at a steady pace.
of how nascent the discipline of customer
Christopher Brooks believes there is still a “I’m not at all surprised that there are so many
experience management remains for many
steady stream of new industries embracing organisations that are still only just beginning
organisations. Over a quarter (28%) told us
CX. “We are still in the ‘early majority’ phase to formalise their CX programmes. It’s all
that the CX programme at their organisation
of the adoption curve. In 2020 and 2021 relative and depends where those companies
is a year or less old. This is almost identical
we have seen new sectors really grasp the are based and the level of CX maturity in that
to the number from the 2020 report (26%) -
value of CX such as logistics, online retail and region, and their leadership expertise and
an indication that the flow of organisations
manufactures. So, a new wave of entrants.” understanding of CX. Even a programme of
buying into CX and formalising customer
only one or two years’ old could be progress
experience management is yet to slow.
and a positive outcome for the organisation.”

Q5: How long has your company had a customer "Over a quarter (28%) told
experience programme in place? us that the CX programme
at their organisation is a year
or less old. This is almost
identical to the number
11% 43% 8% 47%
19%
from the 2020 report (26%)
19% Two to
five years - an indication that the flow
of organisations buying into
One year
or less CX and formalising customer
2022 2020 experience management is
Six to
nine years yet to slow."
Ten years
or more

28% 26%

The changing face of CX leadership 14


RESOURCES AND REPORTING
What is the headcount of Ricardo Saltz Gulko agrees that the pandemic
has had influence, but that there are
customer experience teams?
potentially other factors contributing also.

Our findings thus far point to a very healthy “Partly because of COVID, budgets are being
profession, despite the challenging business scrutinised. But also partly because some
landscape of the past two years. However, practices are overpromising, or making
when we look at the average sizes of it difficult to measure results due to a lack
customer experience teams we start to see of fundamental understanding.
some potential signs of strain, with indications
that CX functions are being downsized. In fact, "In fact, the number of
the number of customer experience leaders
who report that they are the sole member
customer experience leaders
of their team has doubled in the past two who report that they are
years - 22% in 2022 compared with 11% in 2020. the sole member of their
Meanwhile the number of very large teams
(20+ staff) has halved - 10% in our latest study
team has doubled in the
compared with 21% in 2020. past two years - 22% in 2022
A sign of cost-cutting as a result of the compared with 11% in 2020. "
pandemic perhaps?

“In my own personal experience, this is


undoubtedly down to COVID,” says Keith
Gait. “I was leading a three-to-five year,
award-winning transformation programme
with a national organisation, but as COVID
came along, the funding was withdrawn,
and the programme had to stop. Many
organisations experienced the same.”

The changing face of CX leadership 15


“There are so many professionals now
Q6: Including you, how many staff are in your company’s customer experience team?
claiming to be an expert in CX, that the
quantity is now surpassing the quality. This
is impacting the quality of CX programme
delivery. There is a new generation of 10% 42% 45%
7%
professional that has more passion for 2-5
CX than expertise. Unfortunately, many 11% 11%
executives have difficulty accurately Just me
evaluating new customer experience
hires because they themselves lack an
understanding of the skills required, and 2022 2020 6-10

in particular that CX is intrinsically related 15%


to transformation and change.” 11-20
15%

"Many executives have 20+

difficulty accurately 22% 21%

evaluating new customer


experience hires because
they themselves lack an Q7: Do you employ a consultant / consultancy to support your CX programme?
understanding of the skills
required."
45% 9% 43%
15%
In potentially another sign of cost-cutting, the
17% We don’t and never have
number of customer experience programmes
that are investing in consultancy support has
We don’t currently but
also had a marked drop - with only 19% telling
have done in the past
us they currently use a consultant compared
2022 2020
with 31% two years ago. 19% We do

However, the number saying they plan to


We don’t but are
in the future has risen slightly from two
planning to in the future
years ago.
21% 31%
Who do CX leaders report to? versa. This move seems to demonstrate “Depending on the maturity model of the
a powershift within organisations, with region and their leadership understanding,
In terms of reporting structure, the number the customer experience team/leader I think we will continue to see a shift towards
of customer experience leaders that report taking on greater prominence. This does, the CEO since CX is a crucial part of his
directly to the CEO continues to rise (42% now however, appear to conflict with the trend responsibility,” says Ricardo Saltz Gulko.
compared with 39% two years ago) while at of downsizing CX teams. “But no one model fits all; different
the same time, the number of CX leaders that companies act and design their organisation
Elsewhere, around a fifth of our respondents
report to the CMO has dropped (from 20% in structure based on many different impact
(21%) cited others outside the usual
2020 to 10% in our latest study). parameters, including the simple allocated
candidates that they report to - including
budget and c-suite structure. What would
Both of these trends have been characterised roles as diverse as transformation director
work well for Wall-Mart may not work for
in several high-profile restructures over and the chief financial officer. This is again
Huawei, SAP, and Samsung as they have
the past year from brand giants such as perhaps a reminder that customer experience
other visions and needs.
McDonald’s, Wal-Mart, Volkswagen and management is still relatively immature and
Walgreens, with the CX leader reporting that there is still no commonly acknowledged
directly to the CEO and with marketing often best structure for the CX team to sit within at "This move seems to
reporting into the CX leader rather than vice this point in its evolution. demonstrate a powershift
within organisations, with
the customer experience
Q8: To whom do you report? team/leader taking on
greater prominence. "

5% 42% 4% 39% “In Samsung for instance, the CCO equivalent


CEO
8% 11% position is not reporting to the division's
10% CEO and it is working exceptionally well
12% Other
and getting better all the time.
COO / head
“The trend is significant but not necessarily
of operations
2022 2020 a solution for all, since CX is evolving and
CMO / head
continuously adapting for local needs. Agile
of marketing
organisations are continuously experimenting
C-suite
12% as a whole
until they find what works best, and then
14% they will adapt and change again, constantly
C-suite
21% 20% as a whole ensuring they are improving themselves.”

The changing face of CX leadership 17


Q9: Which of the following initiatives do you have ownership of? (tick all that apply)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

76%
Customer insight
73%

RESPONSIBILITIES AND RESULTS CX strategy


76%
91%

51%
Customer service
What are the main Customer insight and customer strategy 54%
remain the most common responsibilities
responsibilities of CX leaders? Customer success 42%
for our respondents, but overall it is quite N/A
fragmented and reflects just how broad
Given the different structures that the 37%
this role can be - i.e. training/development, Call/contact centre
customer experience team sits within and 43%
employee engagement, operations, market
the varied staff sizes, it’s unsurprising that CX 32%
research and design/UX are all reported as Training/development
leaders are responsible for an exceptionally 35%
responsibilities by between a quarter and
broad range of different tasks. Around a
a third of the respondents. 32%
third (30%) are now responsible for digital Data and analytics
42%
transformation at their organisations - One shift in responsibilities that does
up from 22% two years ago - obviously a stand out is the number that say they have 30%
Digital transformation
field where there has been a great deal of ownership of customer experience strategy. 22%

activity over the past two years in response While it’s a responsibility that seems like 28%
Operations
to the pandemic and the shift in consumer it would be the remit of the CX leader, the 31%
behaviour towards digital. Customer success proportion that said they owned the CX 26%
Market research
is also now a part of the CX leaders remit in strategy dropped from 91% in 2020 to 76% 31%
almost half of cases (42%). in 2022. Could this be a consequence of the 23%
aforementioned restructure? Design/UX
24%
"Around a third (30%) are As Keith Gait notes: “My take on this, from Employee engagement 20%
N/A
now responsible for digital the organisations I have dealt with, is that /experience
more is now being led by CEOs and functional
transformation at their executives, so this could be the reason - and if
Corporate strategy
19%
23%
organisations - up from 22% it is, that can only be a good thing that it has
15%
two years ago - obviously higher traction at c-suite level.” Digital marketing
18%
a field where there has been 10%
Offline marketing
a great deal of activity." 11% 2022 2020

The changing face of CX leadership 18


How is CX programme predicted that there would be significant job
performance being losses amongst CX professionals as a direct
result of a failure to prove their value to the
measured? business. So it is a surprise to see that the
number of respondents that monitor financial
The metrics that our CX leaders use
metrics in the latest study remains around the
to monitor the performance of their
same as two years ago.
programmes are extremely varied, but the
most commonly applied are the two stalwarts
NPS (used by 73% of those questioned) and "At the time we noted that
CSAT (67%). Customer loyalty/retention (45%), while customer experience
and likelihood to recommend (40%) also
feature strongly.
had grown dramatically
as a discipline over the
Beyond those metrics, we once again see
divergence according to the specific role past decade, and if it was
and responsibilities of the CX leader. For to ensure future investment
instance, the majority of those that have growth, CX programmes
ownership of the contact/call centre are
of course monitoring the likes of first
would need to demonstrate
response time (69%) and first contact they are delivering
resolution (54%), while these metrics business value."
are of little or no concern to those who
do not oversee this part of the business.
Even those reporting directly to the CEO
An issue of concern noted in the 2020 are only slightly more likely than the average
research was the relatively small number to report on ROI (32%) or revenue/financial
of respondents that track financial metrics metrics (35%). If customer experience
or ROI related to their CX programmes. resourcing is being called into question - and
At the time we noted that while customer the downsizing of teams appears to raise this
experience had grown dramatically as a prospect - it is more important than ever that
discipline over the past decade, and if it was CX leaders can demonstrate the financial
to ensure future investment growth, CX contribution of their programmes.
programmes would need to demonstrate
“Financial metrics are - most of the time -
they are delivering business value.
what convince sceptical leaders to invest
Outside of our research report, others echoed or keep investing and growing their CX
these concerns - Forrester’s VP and research initiatives,” warns Ricardo Saltz Gulko. “The
director Harley Manning, for instance, c-suite is pragmatic and there is a huge

The changing face of CX leadership 19


Q10: What metrics do you measure to monitor CX performance? (tick all that apply)
"CX can’t and must never
exist in a bubble. Marketing 0% 10% 20% 30% 40% 50% 60% 70% 80%

went through this 20 or NPS (net 73%


promoter score) 74%
30 years ago and developed
67%
their ROI. CX must do CSAT (customer
satisfaction) 73%
the same." 45%
Customer loyalty metric/
retention rate 42%
difference between thinking you have great Likelihood to 40%
company results because your NPS or CSAT recommend 23%
has improved and seeing improvements in 38%
the three main areas of adoption, loyalty and Customer churn
41%
ROI. It’s also worth remembering that today
Customer 37%
leaders are aware that it is possible to connect lifetime value 31%
measurements, KPIs and revenue growth.”
37%
CES (customer effort)
Keith Gait adds: “CX can’t and must never exist 39%
in a bubble, or it will just be seen as fluffy and 35%
First response time
adding cost. Marketing went through this 20 34%
or 30 years ago of developing their ROI, and
Revenue/ 35%
CX must do the same. financial metrics 36%
“Every investment needs to be able to 29%
Issue resolution rate
see a return, or it’s not an investment - it’s 26%
just a blind punt. This is where so much 27%
First contact time
damage gets done to our industry and 43%
why professionalisation, more education Average ticket 24%
and higher skilling is really important.” issue time 32%
24%
ROI
31%

Likelihood to 18%
buy again 8%

Number of 15%
interactions per ticket 22%
6%
Other
4% 2022 2020

The changing face of CX leadership 20


How is CX leader performance Perhaps unsurprisingly, those that told us Q11: What metrics is your performance as a CX leader measured by?
being measured? they are measuring the financial metrics (tick all that apply)
of their CX programmes are also those who
are being personally monitored according to 0% 10% 20% 30% 40% 50% 60%
When asked what metrics are being used
dollars and cents! But with a rising number
to track their personal performance, once NPS (net 50%
of CX leaders being held accountable for
again a varied range of measurements are promoter score) 53%
their financial contribution it is of course
being applied – though again NPS and CSAT CSAT (customer 44%
something that all customer experience
are most common, reported by 50% and 44% satisfaction) 47%
leaders should put greater focus on.
respectively. The next most commonly used Revenue/ 38%
measurements are revenue/financial metrics, Also of note is that CX leaders who report to financial metrics 31%
reported by 38%. In the 2020 study, 31% of the CEO are slightly more likely to have their Customer loyalty 32%
our respondents told us that their personal personal performance measured by ROI and metric/retention rate 23%
performance was measured according to revenue/financial metrics than the average 27%
Customer churn
revenue/financial metrics, indicating that a (40% vs 27% and 46% vs 38% respectively). A 27%
growing proportion of CX leaders are under similar trend was identified in the 2020 report 27%
ROI
scrutiny for their programme’s contribution to and with a rising number of CX leaders now 27%
the bottom line. reporting to the CEO, this is something that 24%
Others
customer experience professionals should 8%
take into consideration when deciding their 18%
CES (customer effort)
measurement programmes going forwards. 19%
Likelihood 17%
to recommend
"More respondents are 8%
17%
telling us that their personal Customer lifetime value
16%
performance is being 11%
First response time
measured according to 15%
11%
revenue/financial metrics, Issue resolution rate
9%
indicating that a growing 11%
First contact time
proportion of CX leaders 15%

are under scrutiny for their Likelihood to


buy again
10%
3%
programme's contribution 9%
Average ticket
to the bottom line." issue time 5%

Number of 6%
interactions per ticket 3% 2022 2020

The changing face of CX leadership 21


pandemic, matters to many. When there
Q12: Which benefits do you believe have been achieved as a direct result of your
What results are CX were no sales to be done, were they still
CX initiative? (tick all that apply) programmes delivering? looked after? The churn and the sales may
attribute to this increasing ‘standards of
As a key metric that CX leaders are measuring conduct’ consumers have of companies
- and are being judged on - it is reassuring to and them not responding well.”
0% 10% 20% 30% 40% 50% 60% 70% 80%
see that so many are reporting that customer
But Brooks also has another potential
73% satisfaction has grown at their organisations
Increased customer explanation for some of the drops: “It also may
(73%). However, this does have to be tempered
satisfaction 68% reflect the reality that attributing incremental
slightly by the fact that the number reporting
gains to CX is an overreach. There are too
A company-wide 64% CSAT improvements apparently outstrips the
feeling that customer many variables to effectively isolate CX’s
50% number that told us they are measuring CSAT!
experiences are improving contribution from all others”.”
This is perhaps a sign that they’re either using
54% a different satisfaction measurement or that
Improved NPS
51% it’s an arbitrary sense that satisfaction is up "The pandemic has reshaped
from conversations with clients. This may also customer expectations
Growth in revenue 36% be reflected by the fact that a ‘company-wide
associated with better of organisations. Many
customer experiences 43% feeling that experiences are improving’ is also
up strongly (rising from 50% in 2020 to 64%). have tried different
26%
Reduced customer churn Of some concern, however, are drops in brands and new channels.
43%
the number reporting that they have seen This experimenting has
24% benefits relating to customer churn (from shifted the often apathetic
Reduced cost of operation 43% in 2020 to 26%), operating costs (from
36% consumer."
36% to 24%) and revenue associated with their

Improved metrics compared 24% CX programmes (from 43% to 36%) - though


to competitors 26% this may be more of a reflection of the harsh Elsewhere, we were pleased to find that those
business conditions over the past two years, organisations that have persisted with their
We are unclear about the 21% rather than the state of CX programmes and CX programmes and CX leaders are likely
benefits/it’s too early to tell 11% leadership. to reap the benefits. For those programmes
that are 6+ years old, the number reporting
Christopher Brooks notes: “The pandemic
An improvement in 17% improvements in CSAT rises to 89% and the
has reshaped customer expectations of
market share 18% number reporting NPS improvements rises
organisations. Many have tried different
to 59%. And to demonstrate the importance
2% brands and new channels. This experimenting
We do not believe we of the leadership itself, for those CX leaders
has shifted the often apathetic consumer.
have seen any benefits 1% 2022 2020 who have been in their roles for 6+ years the
The reason for switching is not only price-
numbers are higher still - CSAT leaps to 96%,
sensitivity anymore, but how companies
and NPS up to 67%.
also treated staff and customers during the

The changing face of CX leadership 22


What are the main obstacles But elsewhere there are signs that some Q13: What are the biggest obstacles to your CX programme’s success?
challenges are becoming more problematic. (tick all that apply)
to CX programme success?
Company culture, for instance, has become
a greater issue over the past two years, cited 0% 10% 20% 30% 40% 50% 60%
Perhaps in light of the challenges of the by 36% of those surveyed in 2020, it is now
55%
past two years it is no surprise that the reported by 44%, making it the second most Organisational silos
49%
number of areas that our respondents report common challenge.
as obstacles has increased since we last 44%
“Culture can be a gatekeeper for CX success Company culture
36%
conducted the survey.
and can be a tremendous enabler for CX
37%
Organisational silos are the most common programmes,” notes Ricardo Saltz Gulko. Business processes
28%
obstacle for CX leaders - cited by over half “But if the c-suite perceives customer
of our respondents (55%). The issue was experience as a burden due to the change 35%
Technology
also the most commonly cited challenge management effort involved, or they are 23%
two years ago, but appears to be becoming not convinced that a CX project will deliver 33%
Skills and training
even more of a widespread obstacle (49% ROI, then it is a problem. There can be a lack 19%
reported it in 2020). Given the importance of deep understanding, or no commitment
31%
of delivering seamless, consistent to change.” Budgets/investment
15%
experiences across multiple channels to
Fostering a customer-centric culture is 28%
today’s customers, and having a joined-up Lack of executive support
a long-term project, as converting the 23%
view of the customer throughout their often
mindsets and behaviours of staff is a complex
complex web of interactions across different Measuring CX 25%
and time-consuming task, so it is no surprise
parts of the organisation, siloes are clearly performance 12%
that those who have been in their roles the
a huge threat to the success of customer
longest are least likely to see it as a major 25%
experience programmes and it is a concern Demonstrating ROI
obstacle, with the number dropping to 29% 24%
that it is a growing problem.
for those who have been in their present Customer insight/ 23%
roles for 6+ years. However, it is worth noting understanding 7%
"Organisational silos are that only 7% of this same demographic
Changing customer 18%
cited culture as an obstacle two years ago
the most common obstacle - perhaps a reflection of the disruptive
expectations 7%

for CX leaders - cited influence that remote/hybrid working has Employee engagement 14%
and motivation 14%
by over half of our had on company culture.
13%
respondents (55%)" COVID-19
N/A

There are no 5%
major obstacles 4% 2022 2020

The changing face of CX leadership 23


Similarly, technology has also become a
"In the 2020 study, 31% of
greater challenge over the past two years,
with over a third (35%) now citing it as one our respondents told us that
of the biggest obstacles to their CX success, their personal performance
up from under a quarter (23%) in 2020 -
was measured according
almost certainly a reflection of the challenges
related to the rapid digital transformation to revenue/financial metrics,
that has been required of organisations since indicating that a growing
the pandemic. proportion of CX leaders
Perhaps unsurprisingly, given some of are under scrutiny for their
the findings we have made in this report
programme’s contribution
(specifically around the downsizing of teams)
budget and investment has also become to the bottom line."
a greater challenge for our respondents -
a mere 15% cited it as one of their biggest
On one final note, it is interesting to see
obstacles two years ago, but now nearly a
that a mere 13% of respondents cited COVID
third (31%) believe it is a major inhibitor for
as one of the biggest obstacles to their
their CX plans. We will explore budgets in
CX programme’s success - a big surprise
greater detail to shed more light on this,
considering the impact it has had on the
in the next section of this report.
likes of budgets and technology.
Elsewhere, measuring CX performance is also
cited as a major obstacle by nearly double
the proportion than in the previous study -
a quarter (25%) in 2022 compared with 12%
in 2020. It seems difficult to understand
how measurement could be any more
challenging than it was two years ago, but
its greater presence this time around could
point to there being greater pressure from
the powers that be (and those holding the
purse strings) to measure and demonstrate
the impact of the CX programme.

The changing face of CX leadership 24


Q14: What technology investment has the CX team specifically been responsible
for? (tick all that apply)

0% 10% 20% 30% 40% 50% 60% 70%

Voice of the Customer /


surveying tools

BUDGETS AND INVESTMENT


CRM

Live chat for service

Enterprise feedback
management
What technology are investment across many categories compared
Customer journey analytics
to two years ago. This is perhaps explained
CX leaders investing in?
again by the difficult business conditions that Customer data platform
N/A
have been experienced, and also aligns with Chatbots/virtual
As we’ve already discovered, CX leaders often customer assistants
the findings related to the downsizing of CX
have a broad remit, and this is something that Customer journey
teams and the growing opinion that budgets/ mapping software N/A
is very much reflected in the wide range of
investment are now an obstacle. Times are Customer journey
technology investments that our respondents orchestration N/A
simply tougher than they were two years ago.
report that they have made to support their Web analytics
programmes. But even then, there are some anomalies, Social media
and in particular the drops in analytics monitoring tools
Despite this, there are some standard pieces
investment - web analytics (19% in 2022 vs 28% Text analytics
of kit that you’d expect in the CX leaders’
in 2020), text analytics (19% vs 38%), customer
armoury - in particular Voice of the Customer Customer success tools
journey analytics (28% vs 69%) and social N/A
/ surveying tools, which are the lynchpin of Messaging apps
media monitoring (19% vs 31%). All of this is for service
CX programmes, enabling organisations to
in direct conflict with the higher number of Web content
gauge and understand customer experiences, management systems
respondents telling us that customer insight
as well as identify the all-important areas
is their responsibility. Are customer experience Cloud contact centre
for improvement. Sure enough, Voice of the
leaders that are taking greater responsibility
Customer / surveying tools (cited by 67%), Personalisation tools
for customer insight able to capitalise on
along with CRM (47%), remain strong areas of
pre-existing investments in analytics tools None
0%
investment, and are in line with the findings
(presumably by the marketing department) or Video chat for service
from our 2020 report.
are they working with one hand tied behind Workforce engagement
However, beyond this it would appear that their backs? Let’s hope it is the former. solutions

the CX leaders we surveyed in 2022 have been Employee engagement


solutions
responsible for fewer tech investments than
Speech analytics
their 2020 counterparts, with clear drops in
Voice biometrics
for service 2022 2020

The changing face of CX leadership 25


Q15: How has your CX budget changed during your tenure?
How are CX budgets had increased when we conducted the
survey in 2020, and only 28% telling us their
changing?
budget had remained the same. This is
of course to be expected considering the
As we have already seen with some of
8% 7% turmoil of the past two years.
65% our findings - the apparent downsizing
28% of CX teams and the dip in technology But the good news is that while we have
41%
investments - there are indications that learned that budgets and investment are a
Increased
customer experience leaders are working growing concern, CX leaders are seemingly
under different financial conditions. However, optimistic about the future prospects for their
Stayed when we asked our respondents about their department. 60% told us that they anticipate
2022 2020 the same
budgets the picture wasn’t bleak, although that their CX budget will rise in the next 18
it does appear that budgets are plateauing. months - which puts it roughly in line with
Decreased how optimistic CX leaders were pre-pandemic
While just over half (51%) told us that their
in our 2020 study.
budgets have increased during their tenure
as CX leader at their organisation, 41% Keith Gait is witnessing a bounce back.
51%
reported that their budget had remained “As we have come through the pandemic,
the same - this compares to nearly two-thirds clients I have been working with over the
(65%) telling us that their budgets last year or so realised during COVID that
they had under-invested in their CX, and
Q16: How do you anticipate your CX budget will change in the next 18 months? are developing quite ambitious CX and
"CX leaders are seemingly contact centre transformation strategies
optimistic about the and programmes now - and this is great

4%
future prospects for their to see and be involved with.”
6% 65%
31% department. 60% told us
34%
that they anticipate that
Increased
their CX budget will rise in
Stayed the next 18 months - which
2022 2020 the same puts it roughly in line with
how optimistic CX leaders
Decreased
were pre-pandemic in our
2020 study."
60%

The changing face of CX leadership 26


Where do CX budgets Q17: Which department does the budget for your CX team fall into?
come from?

As we have already seen, customer experience


0% 10% 20% 30% 40% 50%
departments have been at the centre of
major organisational restructures in the past 27%
It has its
two years. Although these appear to put CX own budget 48%
teams in a position of greater prominence,
22%
the downsizing of teams, limited technology Marketing
29%
investments and plateauing budgets tell a
different story. And another twist in the tale is 21%
Operations
that our findings reveal that there has been a 12%
dramatic drop in the number of CX teams that
Central 10%
have their own budgets.
4%
Whereas nearly half (47%) of CX leaders had 7%
Service
their own budget in 2020, this year that 4%
number is down to 27% - putting it only just
ahead of marketing, which is funding 22% of 6%
Sales
1%
CX teams, though even this has experienced
a drop from 2020 (when it accounted for 29%). 3%
Other
1%
"And another twist in the Information 3%
tale is that our findings technology 1%

reveal that there has been Human 1%


resources
0% 2022 2020
a dramatic drop in the
number of CX teams that
have their own budgets."

Perhaps as a result of the aforementioned


restructures, a greater number of respondents
are now telling us that they are being
bankrolled by either the operations team (up
from 12% in 2020 to 21% in our latest report) or
the central team (up from 4% to 10%).
Q18: What are your top CX priorities for the coming 18 months? (tick all that apply)
What are the main CX "Nearly half (49%) say that
0% 10% 20% 30% 40% 50% 60% programme priorities? customer insight is a priority
CX strategy
43%
55%
Customer insight and data & analytics have
for the next 18 months,
Customer insight 49% become dramatically more important as CX compared with only 16% that
16%
Voice of the customer/ 49%
priorities for our respondents over the past said it was a priority in 2020.
42% two years. Nearly half (49%) say that customer
customer feedback
And data/analytics was cited
45% insight is a priority for the next 18 months,
Data and analytics
20% compared with only 16% that said it was a by 45% this year, compared
41%
Customer journey mapping
43%
priority in 2020. And data/analytics was cited with 20% in 2020."
40%
by 45% this year, compared with 20% in 2020.
Digital customer experience
9%

Customer retention 38% These spikes in interest are perhaps a result


N/A
of changing customer behaviours and
Company culture 37%
14% preferences in the wake of the pandemic.
34% However, they could also be a reflection
Digital transformation
5% of the growing number of CX leaders that
Customer metrics 32% told us that insight is now one of their chief
5%
responsibilities.
Removing corporate silos 32%
12%
22% Also related to this study’s findings,
CRM
14%
having seen that analytics tools have been
Training/development 26%
7% overlooked for investment, it makes perfect
26% sense that our respondents would tell us
Employee engagement
7% that this will be a big priority for them in the
Customer service 25% coming 18 months.
12%

Multichannel/omnichannel 22%
14% Elsewhere, digital transformation has also
19% been cited as a priority by a vastly higher
Corporate strategy
4% proportion of respondents, as has employee
ROI 18% engagement and training/development. All
9%
perhaps signposts of where investment will
Contact centre 17%
3% be happening in the next 18 months - and
Customer acquisition 15% hopefully in greater numbers as budgets rise.
8%
14%
Operations
4% 2022 2020

The changing face of CX leadership 28


METHODOLOGY
This research report is based on an online
survey of customer experience leaders
around the globe, conducted during January
2022. A total of 123 respondents took part in
the survey to tell us about their roles.

The changing face of CX leadership 29


NEWS AND ADVICE
The latest opinion and
analysis from a roster of
expert contributors.

EUROPE’S LEADING ONLINE RESOURCE CENTRE FOR


CUSTOMER EXPERIENCE PROFESSIONALS.
MyCustomer.com is the largest customer-centric marketing portal, providing RESEARCH AND REPORTS
access to key decision makers across customer experience, marketing, Trends, insight and best practice
customer service and IT roles. for CX, service and marketing
professionals.
We offer credible engagement of senior professionals and influencers from
across industry via our leading content and social reach. Core themes include
marketing technologies, Voice of the Customer, CRM, contact centres and
customer experience. Marketing managers and C-level directors make up
nearly half of the total readership.

www.mycustomer.com

EVENTS
Digital and in-person events,
podcasts, webinars and the annual
CX Leader of the Year award.

The changing face of CX leadership 30


ABOUT TTEC
In the always on, omnichannel world in which we live designing,
building and operating captivating experiences across every
channel, every interaction, every day – that’s not so simple.

We have built our business to strengthen the crucial


relationship between brands and customers.

Our integrated Humanify Customer Engagement as a Service


offering combines talent and technology to help our clients
unify the customer experience across the entire customer
engagement value chain, delivering greater impact in terms
of increased revenue, improved profitability, and deeper
customer loyalty.

ttec.com/emea

The changing face of CX leadership 31


ABOUT ECXO
The European Customer Experience Organization (ECXO) is an
open, free access, professional community that aims to bring
together leaders and organisations, operating in Europe and
beyond, so that they can learn, discuss, share knowledge, best
practice, insights, stories and lessons with a view to raising the
collective customer and employee experience across Europe
initially and beyond.

ecxo.org

The changing face of CX leadership 32

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