In brief
This article explores the 5 biggest reasons why CX initiatives fail.
For each one, we define the mistake, explain why it is a problem, and then present a known solution.
We then introduce a new podcast series that will examine more broadly the challenges financial services companies face when implementing CX initiatives.
Introduction
For over 15 years, I’ve seen firsthand what makes CX initiatives succeed – and why they fail. This has come from either hands-on experience leading CX programs at top firms like BlackRock, J.P. Morgan Asset Management, and State Street Global Advisors, or from chairing the Global Asset Management CX Forum and [now] running the industry’s CX benchmark.
From post-M&A integrations to operational turnarounds, the fundamental goal has always been the same: leveraging CX as a competitive advantage. Yet, too often, well-intended initiatives fall short due to common mistakes. This article uncovers the top five pitfalls and, more importantly, how to avoid them.
Some of these initiatives established CX as an incontrovertible source of competitive advantage for the firm, while a few were unable to take root. Most, however, created a constructive rebalancing of priorities towards clients. Could they have achieved more? Yes, if they had not been held back by common misconceptions about CX. Hence, this article.
Therefore, the mistakes and lessons I have learned and observed may be relevant to many organizations, so I have taken this opportunity to record the top five here.
Five reasons why CX initiatives fail
Why this is a problem: if your programme adopts a definition of CX that makes it impossible to demonstrate improvement, it will be at high risk of making no difference, being judged a failure, and creating reputational risk for you.
Solution: Define CX as an ‘effect’ you ‘cause’ that manifests itself in a) what clients say (subjective feedback) and b) what they do (objective behavior). Track ‘both sides of the coin’:
- Client feedback as an indicator of ‘vibes’.
- Client behavior as a measure of the time and money clients give to your brand. If you also want to set yourself a target (or define “excellent”), aim to outperform the CX of other asset managers in the Client Behavior Benchmark. Actions speak louder than words.
Why this is a problem: No matter your industry, if your company has clients, it will deliver a CX. So, having a CX is not a choice. The experience you provide is also entirely under your control. Your clients know this, and their experiences with other companies mean they can recognise good and bad ones. So, choosing not to care about CX is an unforced error that can result in snubbing your clients.
Solution: Your Executive Committee (or similar) should have a CX scorecard that allows it to monitor the quality of the experiences clients receive. I am not trying to appeal to your good nature; this is business. If your CX underperforms at engaging clients, they will give their time to your competitors … and then their money. I have seen this happen to one firm that ended up losing THE client they couldn’t afford to lose. They had to sell up within the year. So, if you have any unconvinced stakeholders, ask them if they have anything more important than time and money from clients.
Why this is a problem: Starting your client journey when they become clients is a simple and attractive idea. Yet, it is a mistake: CX begins the moment a potential client interacts with your brand – not when they become a paying client. Ignoring the pre-sale experience can lead to misaligned expectations, lost conversions, and lower retention.
Also, if you want to retain clients and sell them a second or third product, you will need to expose them to all the marketing and sales processes that sit on your pre-sale experience.
Solution: good CX is a promise delivered, so treat CX as an end-to-end experience. Align marketing, sales, and service teams to ensure:
- Seamless transitions from the first interaction to long-term loyalty.
- Expectations set in the pre-sale phase will be met post-sale.
Why this is a problem: At some point, you will likely run a project to upgrade your CX. However, on the day after your project ends, your company will still deliver an experience to clients. And that experience will continue to have the potential to be a source of competitive advantage (or disadvantage).
Solution: Therefore, CX is NOT a one-off project. Rather, it is an ongoing capability that your CX project should implement or improve.
Why this is a problem: The Client Service function is typically responsible for fulfilling client queries and requests. Sometimes, their remit can be broader, e.g. covering all ‘post-sale services’. But whatever their remit, it’s their day job; it’s vital to the organization and must be their top priority.
Solution: In contrast, the experience you give to your client is the single thread that weaves through all your teams that stops them becoming unconnected siloes. The goal of CX, therefore, should be to ensure the efforts of ALL marketing, sales, and service teams on the client journey combine into a seamless, mutually supportive, and client-centric experience that outperforms competitors. CX, therefore, is NOT Client Services. It is a cross-functional coordination task.
Competitive CX – an upcoming podcast series
I hope you have found this explanation of the main reasons why CX initiatives fail useful. For sure, there are more mistakes that people make, but these five are the big ones. As a result, you can use the lessons to materially increase your chance of success.
I also understand that the real world is more nuanced than can be conveyed in a single short article and different perspectives will provide additional solutions. That’s why we’re launching Competitive CX, a podcast series exploring how financial services professionals can overcome real-world CX obstacles.
Across nine episodes, the amazing Hamish Taylor (award-winning CEO and specialist in customer-led transformations) and I will examine the main challenges of CX under the exceptional direction and coordination of Melanie Aimer (Global Head of Client Experience). Subscribe to Accomplish’s monthly newsletter to find out when each episode is ready.
- Why care about CX?
- What is CX and who should own it?
- Cultures that kick CX down the road.
- Organisational structures that get in the way of CX.
- Incentives that inadvertently deprioritise CX.
- Regulator – friend or foe to CX?
- Technology – enabler or disabler for CX?
- Solving the most common CX complaints.
- Where to start with CX?
