why paying employees for delivering good cx is a bad idea, and …€¦ · customerville. 6/27/2018...
TRANSCRIPT
6/27/2018
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CX NYC 2018
Maxie Schmidt
Michelle Morris
Max Israel
Why Paying Employees for Delivering Good CX Is A Bad Idea, and What To Do Instead
Sponsored by Customerville
2© 2016 Forrester Research, Inc. Reproduction Prohibited
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3© 2018 Forrester Research, Inc. Reproduction Prohibited
#PleaseGiveMeA10!
#ThatSurveyShouldn’tCount!
#Can’tChangeTheQuestions!
#NotUntilYouPayMe!
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WHY?
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5 Myths
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Signal
myth1
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Incentives send mixed
signals about CX
Monetary incentives show
that we take CX seriously
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Control
myth2
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Rules stifle employee
autonomy and great CX
cannot be captured in a
set of rules
We need rules to drive
customer-centric behaviors
10© 2018 Forrester Research, Inc. Reproduction Prohibited
“Ninety percent of adults spend half
their waking lives doing things they
would rather not be doing at places
they would rather not be.”
Barry Schwartz, Psychologist,
Author of Why We Work
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Effectiveness
myth3
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Behaviors change in
unintended, adverse ways
Monetary incentives are
changing behaviors
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Fre
quency o
f behavio
r
Time
Adverse effect on long-term behavior
With reward
Without reward
Benabou/Tirole – Intrinsic And Extrinsic Motivation. https://www.princeton.edu/~rbenabou/papers/RES2003.pdf; Barry Schwartz, Why we work.
Reward →
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Adverse effect on ability to think, create, empathize
Dan Ariely – Predictably Irrational; Chidiebere Ogbonnaya, Kevin Daniels, Karina Nielsen: Research: How Incentive Pay Affects Employee Engagement, Satisfaction, and Trust.
https://hbr.org/2017/03/research-how-incentive-pay-affects-employee-engagement-satisfaction-and-trust
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Motivation
myth4
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Money is not a (good)
motivator
Monetary incentives
motivate employees to do
better work
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Money crowds-out social norms
18© 2018 Forrester Research, Inc. Reproduction Prohibited
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Re-Tooling
myth5
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Every incentive system
will be gamed
We can create a smart
incentive system
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“Did any employee
coach you on what
score to give?”
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Monetary CX incentives are a high-risk
performance management tool
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What now? Motivate great CX
delivery without monetary
incentives!
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Fre
quency o
f behavio
r
Time
Play the long game
Reward →
With reward
Without reward
Benabou/Tirole – Intrinsic And Extrinsic Motivation. https://www.princeton.edu/~rbenabou/papers/RES2003.pdf; Barry Schwartz, Why we work.
With behavior management
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CX NYC 2018
Michelle MorrisAssociate Director of Client Experience,Crowe LLP/Crowe Healthcare Risk Consulting
27© 2016 Forrester Research, Inc. Reproduction Prohibited
Have a clear vision and don’t stop talking about it.
Have a clear
vision and
don’t stop
talking about
it.
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Engage the help of those who already do it right.
Engage the
help of those
who already
do it right.
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Teach, practice, and repeat.
Teach,
practice, and
repeat.
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“Acknowledgement is a kind of a
human magic. A gift from one
person to another that translates
into a much larger, more
meaningful outcome.”
Dan Ariely, psychologist and behavioral
economist, author of Payoff
CX NYC 2018
Max IsraelFounder and CEOCustomerville
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The
Self-narrative Gap
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The positive storyline of your role
in customers’ lives is the taut
clothesline from which you can
hang everything else.
-Aaron Sorkin
(did not say this)
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Reader-provided Curation
Sharer-provided Curation
Machine Learning Curation
Pitfall #1
Not explaining
to customers
what you’re
doing, or not
trusting them
to act in good
faith.
Pitfall #2
Fire and forget
reporting that
never changes.
Pitfall #3
Letting brand
guidelines get
in the way of
authenticity.
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Next steps? Wean your firm off
of monetary CX incentives!
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Assess costs & effectiveness of rewards
Assess costs
&
effectiveness
of rewards.
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❑ Peer-to-peer
❑ Exciting
❑ Prosocial
❑ Unexpected
❑ Prompt
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Loss aversion and mitigation
Loss
aversion and
mitigation.
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Further
resourcesForrester
CX Cast
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Thank youMaxie Schmidt
@maxieschmidt
For further reference, read:
Why Paying Employees For
Delivering Good CX Is A
Bad Idea
How CX Pros Can Make Every
Employee Accountable For CX
Delivery Without Resorting To
Monetary Incentives