Reflecting on the just concluded Customer Service Month (October), affectionately dubbed “the L.O.V.E Month” at Stanbic Bank Uganda, it feels like the perfect time to ask whether customer experience (CX) is truly a necessary evolution, or an overblown obsession?

In Africa, CX is still a relatively new concept one that’s well-rooted in Europe and North America, but less mature here.

Here in Uganda, it’s often misunderstood, with businesses grappling to understand its purpose and potential; this presents an opportunity to unpack and demystify CX—exploring why it’s gaining such traction, and to question weigh in whether it’s worth the fuss.

As the Head of Customer Experience, I’m often asked, “Is CX truly transforming businesses, or have we crossed a line into obsession?” At the recent Kampala marketer’s night out, I explored this topic, backed by striking statistics and thought-provoking discussions. Here’s a summary that might change the way you see CX.

CX is a necessity, according to numbers

In today’s competitive landscape, CX isn’t just a buzzword; it’s a lifeline for businesses as recent studies have highlighted. For instance,

·       According to a study by the Havard Business Review, it costs up to 25 times more to attract a new customer than to keep an existing one (HBR).

·       A 2022 study by Gartner found that 89% of companies compete primarily on CX, and that a solid CX strategy isn’t just beneficial, it’s essential.

·       Multiple other studies, including (Forrester, 2022) found that 91% of unhappy customers won’t return after a poor experience.

These studies therefore underscore why many believe CX is a necessary evolution for businesses to survive and thrive. To get the most out of CX, invest in the following practices.

Client Personalization: Today’s customers expect brands to understand and anticipate their unique needs. Personalization and increasingly, hyper-personalization has become essential to delivering meaningful experiences. By tailoring interactions to individual preferences, brands build trust and loyalty. This involves more than addressing customers by name; it’s about creating individualized journeys that resonate on a deeper level. Personalization helps companies stand out in crowded markets, showing customers that they are seen and valued.

Get better at digitization: Digitization is another cornerstone of modern CX. Through innovations like AI-driven chatbots, mobile banking apps, and seamless omnichannel experiences, companies can serve customers faster, more accurately, and at scale. While technology enables convenience and efficiency, the real value lies in blending digital solutions with human interaction. This mix creates a scalable yet personal way to connect deeply with customers, making digital transformation a powerful tool in enhancing CX.

That said, when does CX becomes an obsession?

Like most good practices, attempts at CX excellence in many organisations is not without its pitfalls—you must watch out for the following scenarios:

Stuck in the Rule Book: In many organizations, especially in highly regulated industries like banking, there’s often a strong focus on policies and procedures. While these rules are meant to ensure compliance and minimize risks, they can sometimes leave the customer feeling neglected. Picture this scenario: a customer requests an urgent service for to tackle an emergency, but the service provider fails the customer due to long, rigid internal processes that require multiple steps to secure an approval, staff may find themselves powerless to accelerate the process because they are “stuck in the rule book.”

This example illustrates how an overly strict adherence to policies can lead to customer pain points, even in critical situations. It highlights the need for organizations to reassess their processes regularly, ensuring they align with customer journeys without compromising compliance. A flexible approach where rules support, rather than hinder the customer experience can transform these interactions, reducing customer frustration while maintaining necessary safeguards.

The Hidden Costs of a Smile: Customer experience is not just about customers; it is also about employees. The connection between CX and EX (Employee Experience) is often overlooked, but it’s crucial: when employees feel valued and supported, they are naturally more motivated to deliver exceptional service. However, when employee needs are ignored, it can lead to a robotic, dispassionate approach to customer service.

Consider the stress that frontline service employees face when managing high volumes of customer queries without adequate support or resources. Without regular feedback channels or employee surveys to gauge satisfaction—organizations risk missing out on critical insights. Employees may feel their voices are not heard, resulting in disengagement and burnout. Investing in EX, whether through employee support programmes, realistic workloads, or professional development, is not just beneficial for employees but also directly enhances CX, as motivated, engaged staff bring more energy and empathy to customer interactions.

Prioritizing Statistics Over the Voice of the Customer: Metrics like Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and Customer Effort Score (CES) are valuable in understanding overall customer sentiment, but focusing too heavily on these numbers can obscure the actual customer experience. When organizations obsess overachieving a “good score” without investigating the underlying issues, they may miss critical pain points that require immediate attention.

For example, if the NPS score of a business is high but customer complaints about long wait times or delayed responses remain unresolved, the positive metric may mask significant areas for improvement. While a high NPS can be an indicator of overall satisfaction, it should not replace the need to delve into customer feedback. Organizations should prioritize resolving root causes over inflating metrics, using scores as a guide rather than an end goal. Listening to the “voice of the customer” and taking corrective action demonstrates a true commitment to CX beyond the numbers, enhancing customer trust and loyalty.

Striking a balance is crucial—as Martin Luther King Jr. aptly said, “Not everybody can be famous, but everybody can be great, because greatness is determined by service.” The true test for businesses today is finding greatness in service without getting lost in the obsession over perfection.

Customer experience remains a powerful differentiator if approached wisely. By avoiding the extremes, companies can ensure CX remains an asset, not a liability. As leaders, let’s keep evolving while remaining grounded in the authentic needs of our customers.

So, how do you see CX in your organization; is it a necessary evolution or an overblown obsession? Let’s keep this conversation going…