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The customer- centric CHRO Driving the customer experience: Seven key steps chief human resource of fcers need to take KPMG.com/US/ConnectedEnterprise

The customer- centric CHRO - Advisory · The customer-centric CHRO Changing customer needs require new approach to work ... ways to deal with unhappy customers. 3 . The training encompassed

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  • The customer-centric CHRO Driving the customer experience: Seven key steps chief human resource offcers need to take

    KPMG.com/US/ConnectedEnterprise

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  • 1 The customer-centric CHRO

    Contents

    Changing customer needs require new approach to work ............................................1

    HR’s critical role in elevating the customer experience ........................................3

    The CHRO’s changing role ......................................5

    Powering a smarter HR with D&A ..........................7

    Technology transforming the workforce .................9

    Making the customer-centric case to management ............................................ 13

    Equipping your people for tomorrow’s world ................................................. 15

    Seven key CHRO action steps .............................. 17

    Final thoughts ....................................................... 19

    Why work with KPMG? ........................................21

    Get connected now! .............................................22

    Authors .................................................................23

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG International””), a Swiss entity. All rights reserved.

  • 2 The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG International””), a Swiss entity. All rights reserved.

  • “”

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    1 The customer-centric CHRO

    Changing customer needs require new approach to work

    Customer service reps for a telephone company routinely issued credits to customers who complained about substandard service.

    This KPMG client found that it was losing millions of dollars in its attempt to salvage the relationship.

    Worse yet, despite the payments, existing customers were leaving at a rate two or three times higher than the competition.

    This paper shares practical insights on:

    How HRs’ unique role in a company positions them to be game changers in the customer experience strategy.

    Ways in which innovative technologies, like D&A and AI, are powering HR.

    Steps CHROs can take to ensure their organizations are hiring the right people and training them to succeed in the customer-- centric world.

  • 2 The customer-centric CHRO

    1

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG Internationa”l”), a Swiss entity. All rights reserved.

    The company’s CHRO, feeling the heat from senior management, decided to employ a strategy other than simply issuing credits.

    2

    She had customer service reps take training courses that demonstrated better, more productive ways to deal with unhappy customers.

    3

    The training encompassed talking, and more importantly, listening to customers in an empathetic fashion, fnding out what their issues/problems were, and negotiating solutions that may or may not include issuing credits.

    4

    The CHRO also made a point of hiring new customer service agents who exhibited the ability to express empathy and possessed strong negotiation skills.

    Result The company saved a signifcant sum of money by not hemorrhaging credits. Perhaps more importantly, its customer retention and satisfaction rates improved substantially as customers reported that they felt their complaints were being heard and addressed.

  • 3 The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    HR’s critical role in elevating the cus tomer experience Today, customers have more choices and easier access to information than ever before.

    Thanks to the Internet and a host of social media platforms, customers can quickly and easily fnd out information about what your competitors are offering, and can also connect with a vast public audience when they’re unhappy about your products or services. And unhappy customers with options can spell doom for a business.1

    Regardless of industry or type of business, leading companies are focused on increasing customer satisfaction, value and retention by taking an organization-wide, customer-centric approach, which includes personalizing the customer experience.2 They understand that this type of approach helps them compete more successfully, differentiates them from competitors, and drives proftable growth.

    Traditionally, the development and implementation of an organization’s “customer strategy” typically was the exclusive responsibility of front offce areas, such as marketing, sales, and business development. But this model can no longer stand.

    The customer-centric philosophy and approach must permeate all areas of an organization, from operations to IT to human resources. Like rowers on a crew team, where all oars must be synchronized and pulling at the same time in the same direction, all of an organization’s departments must be working in harmony to enhance the customer experience.

    Enter human resources. HR’s unique role in a company in terms of hiring, training, and ongoing engagement with the broader employee base, positions them to be a game changer in the customer experience strategy. CHROs will need to guide their HR departments to hire the right type of employees, train them (as well as current employees) so they fully understand and appreciate the need for a customer-frst approach, and play a part in developing and implementing compensation arrangements that reward customer-centric behavior. By doing so, and by working together with business units across the organization, CHROs can make customer-centricity part of the company’s culture.

    1Ninety-fve percent of dissatisfed customers tell others about their bad experience, “Changing Dimensions of customer experience”, Research Journal of Economics, March 7, 2018. 2According to the 2018 KPMG CEO survey, 93 percent of U.S. CEOs reported that the investments they’ve made in personalizing the customer experience have delivered the growth benefts they were hoping for.

  • The customer-centric CHRO 4

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

  • 5 The customer-centric CHRO

    The CHRO’s changing role The traditional CHRO role basically involved (1) recruiting, hiring and training of new and existing employees and (2) addressing issues with underperforming or “problem” employees.

    However, expectations for the HR function have evolved. Organic growth continues to be one of the leading growth strategies pursued by CEOs; however, nearly a quarter report their company is not living up to customer expectations for personalized experiences. This critical stakeholder is at risk, and CEOs are looking at those areas of the business that can deliver this and better position them for a competitive advantage.

    In addition to their current responsibilities, CEOs are looking to HR leaders of the future to shift from process - centricity to customer - centricity, embed this philosophy in the organization’s culture and, ultimately, drive more strategic relevance to the organization.

    How HR can infuence the customer agenda There are several ways that CHROs and their HR departments can have a positive impact on making sure that employees across an organization deliver a great customer experience. This includes:

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    Recruiting and hiring the right people

    Training new and existing employees on how to be customer - centric

    Driving a customer-focused culture throughout the organization

    Delivering a great employee experience

    Infusing a customer-service mindset when developing and delivering HR processes and operation to the organization

  • 6 The customer-centric CHRO

    “© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG ”International”), a Swiss entity. All rights reserved.

    How these strategies are implemented primarily depend on the type of employee:

    Customer-facing employees:

    These are the employees who are on the front line dealing directly with customers, either in person, on the telephone or chat lines. These include call center representatives, front desk personnel at hotels, bank tellers, feld service technicians, retail store clerks, etc. They may also encompass sales people, nurses, security staff; basically anyone who deals with customers or clients or patients face - to - face.

    Back and middle offce:

    While these employees may not be customer-facing, they’ll need to have new skills to survive, adapt, and thrive in the new customer-centric world. Ultimately, they need to think about their higher purpose in the organization, how their role infuences the end-user of their organization, and how they can empower those client-facing employees in respect to their job. Companies will need to be more responsive to changing customer needs and wants in terms of products and services, and back and middle offce employees will need to be more fexible and adaptable to changing roles and responsibilities.

    No matter what internal stakeholder HR is serving, it must design a customer centric operating model to deliver better processes and experiences across the enterprise. Adoption of intelligent automation (IA) and self-service tools should be at the top the HR agenda as employees are expecting the delivery of HR information at their fingertips, anywhere and anytime, in order to make critical strategic decisions and problem solve.

    The emergence of leading technology doesn’’t just impact HR’’s ability to enhance process automation and service delivery. Advancements in this area will require HR to attract and retain talent that are more multi-skilled and flexible than ever before. For non customer - facing positions, it will be less about job descriptions and more about skillsets.

  • 7 The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    Powering a smarter HR with D& A Innovative technologies like AI, the cloud, combined with the dramatically increasing power of Data and Analytics (D&A), allow organizations to gather infnitely greater amounts of information about customers, and then analyze it more quickly and accurately than ever before.

    By enabling companies to operate as a more closely connected enterprise, this technology offers multiple touchpoints to a customer base – whether it’s in-store, online, via customer calls, or otherwise. In turn, organizations are better able to determine what customers want - or no longer want – far more quickly than ever before, and can react swiftly and with agility to these changing needs.

    “With the assistance of AI and D&A, instead of having only three or four criteria on which to evaluate customer behavior, you’re going to have 30 or 40,” said Terry Walls, Managing Director, Advisory, KPMG. “This will help you makefact-based, data-driven decisions on what you need to do as a business”.

    “You’ll be able to know what products or services are working, and whether customers are using them, whether they’re using them at faster or slower rates, or dropping them altogether,” added Walls.

    “Companies that will survive and prosper in the future will be the ones that know how to react – and react quickly – to their customers’ evolving preferences.” This technology will enable you to fnd out who your best customers are and then focus on what they like or don’t like, where their pain points are, and how to improve the customer experience.

    “Companies that will sur vive and prosper in the future will be the ones that know how to react - and react quickly - to their customers’ evolving preferences.”

    Terry Walls Managing Director, Advisory, KPMG

  • The customer-centric CHRO 8

    HR departments, in particular, will be looking to take advantage of AI and D&A capabilities as a way to bolster the recruiting and hiring processes.

    This adaptability and fexibility will be the hallmark of companies – and HR departments - that are truly customer - centric. It will also impact the types of employees CHROs need to hire, as well as the training they’ll need to provide to new and current employees alike. By applying an employee engagement strategy on the principles of consumer science, HR can build strategies that are analytics baked with a greater likelihood to see a stronger response in employee loyalty. For instance, the improvement of advanced analytics will enable HR to position the right people in the right place at the right time, resulting in employees feeling empowered, which ultimately boosts talent retention.

    What’s more, HR departments, in particular, will be looking to take advantage of AI and D&A capabilities as a way to bolster the recruiting and hiring processes.

    These technologies can also help determine who are your most productive and effcient employees, their backgrounds and common attributes (e.g., education, geography, prior job experience), and then guide you in fnding more of the “right employees” like them.

    It will also impact the types of third party supply chain relationships organizations enter into. “Your company may need to source different materials – and do so quickly - in order to be ableto build, design and/or manufacturedifferent types of products to suit yourcustomers’ changing tastes,” statedWalls. Advanced technology can helpyou narrow the feld of suppliers thatoffer the services and products thatyour customer base – and organization– need, and allow you to make aselection more quickly and effciently.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    “ ”

  • 9 The customer-centric CHRO

    Technology transforming the w orkforce

    Regardless of industry, vast sums of money are being spent on innovative technology such as AI and Robotic Process Automation (RPA). And this has – and will continue to have – a massive impact on the nature of your workforce.

    “In tomor row’s world, your employees, regardless of type of work they do, will need to be more sophisticated, better trained and able to handle more complex types of problems and interactions than they ever have before as a percent of the type of work they do,” predicted Claudia M. Saran, Principal, Advisory, KPMG.

    “F or example, while your customer service employees will need to have appropriate “hard” skills, like technical problem-solving skills or the ability to read technical blueprints, they’ll also need to possess greater soft skills, such as building rapport, projecting empathy, and the ability to actively listen, connect the dots and negotiate with customers.”

    Reason: Much of the redundant transactional work is going away as a result of automation. So by the time a customer reaches a human customer service person, the situation likely is already at an emotionally heightened, complex stage; it’s not for a simple “order taking” or bill payment matter.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

  • 10 The customer-centric CHRO

    “© 2019 KPM”G LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    Thanks to technology and the many different ways that customers can interact with a company – through a website, a mobile app, ”talking” to a robot with voice recognition capabilities –most routine transactions like ordering aproduct, transferring funds, or switchingairplane seats – can be done withoutthe need to talk to a person. Customerservice employees generally will behandling the most complex, emotionallycharged types of problems – the onesthat AI can’t solve.

    “F uture customer facing employees will need to be more sophisticated, better trained, and able to handle more complex types of problems and interactions.”

    Claudia M. Saran Principal, Advisory, KPMG

  • The customer-centric CHRO11

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“ “KPMG Internation”al”), a Swiss entity. All rights reserved .

    So by the time customers reach out to a customer service employee, they’re likely already agitated. They’ll expect the human agent to know exactly what their problem is, what they’ve tried to do so far, and provide a solution – quickly. That’s why service employees, regardless whether they’re sitting in a contact center, standing behind a store counter, or in front of a customer at their home, the will need to be equipped with soft skills allowing them to truly understand who the customer is, what the customer is trying to do, and’where the customer’s been prior to talking with them.

    Alternative work arrangements:

    A company’s needs for a flexible workforce may persuade some CHROs to contract with an alternative work force, such as contingent labor, freelancers, or so called “gig” workers. This is an expanding segment of the workforce; up to 57.3 million workers participated in the gig economy in 20173 and it’s expected that by 2020, 43 percent of the workforce will be made up of freelancers (up from only 6 percent in 1989).

    Gig occupations cover a wide variety of fields, including art and design, computer and IT (e.g., software/web developers and programmers), construction and extraction,

    media and communications, and transportation and logistics.4 “This alternative work option provides your organization with an opportunity to contract with people who have

    ” the exact skills you need at a particular point in time for as long as you need them,” observed DiClaudio. “When you look at what you need out of a worker from a skills perspective rather than a job title perspective, it opens up the avenues for accomplishing

    ”the task.”

    43%It’s expected that by 2020, 43 percent of the workforce will be made up of freelancers (up from only 6 percent in 1989)

    “L ook at what you need out of a worker from a skills perspective rather than a job title perspective.”

    Claudia M. Saran Principal, Advisory, KPMG

    ³The Gig Economy – Research and policy implications of regional, economic and demographic trends. Aspen Institute, 2017. 4Working in a Gig Economy, U.S. Bureau of Labor Statistics, May 2016

  • 12 The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG Internationa”l”), a Swiss entity. All rights reserved.

    Keep in mind, however, that if your organization is going to embrace the gig worker route, you may need to update your talent strategy to reflect this change, For example, you should:

    Reexamine your workforce composition:Reexamine the makeup of your workforce and the

    impact it has on the business as a whole. If you want to try converting current and future employees to gig

    work, make sure the number of full-time positions reflect business needs. Also consider whether automation will

    reduce the need for specific roles.

    Nurture a “gig” culture:Younger generations tend to place very strong emphasis on an entrepreneurial spirit and work environment. So offering more virtual flexibility and creating new career paths that allow employees - of any age - to develop skills such as autonomy, analytical thinking, and problem-solving could reap major benefits for the growing Generation Z workforce.

    Redefine the employee value proposition:If you have talented employees who you want to retain to supplement the gig workforce, you can emphasize that gig workers don’’t have the same legal protections or benefits as full-timed salaried employees. At the same time, offer your favored full-time employees opportunities to develop strategic capabilities and skills for the future as a way to head them off from considering the jump to full-time gig work for you or someone else.

    Revaluate your HR policies:Align your HR polices to your talent recruitment/retention

    efforts as it relates to gig workers. For example, policies such as non compete agreements and benefit packages

    with respect to full- and part-time employment may need to be modified to account for gig employment.

  • 13 The customer-centric CHRO

    Making the customer-centric case to management CEOs and senior management will likely not need to be convinced about the need for a customer-centric approach from a conceptual standpoint; in fact, they’re almost certainly all in on that point.

    But as with many seemingly simple strategies, the devil lies in the details.

    For example, CHROs may have to make the case to management about the need to measure the personnel performance differently than what’s been done in the past. Or it may mean driving home the message that the company needs to be open to alternative work arrangements, like hiring gig workers or offering more opportunities and training to current employees.

    “If y ou measure employees this way …the result is a frustrated, unhappy customer looking to go elsewhere.”

    Terry Walls Director, Advisory, KPMG

    It’s also the CHROs job to help his or her C-Suite understand what they can do to support this effort. In addition, CHRO’s have to get the buy-in and cooperation from other department leaders, as new HR policies will likely impact these groups. (In this respect, senior management support can prove invaluable.)

    Measuring customer service employees differently As noted above, the role of contact center and other customer service personnel will need to change to meet the changing needs of customers. Traditionally, the number one metric to measure contact center performance has been “average handling time” (AHT); this generally is the length of time a customer service rep is on the phone with a customer.

    “If you measure employees this way then, regardless of how much lip service you give to the concept of ‘customer satisfaction being paramount,’ it pressures them the to rush customers off the phone and close a matter out before it’s really fxed,” stated Walls. “The result is a frustrated, unhappy customer looking to go elsewhere.”

    When the vast majority of interactions were simple and transactional – machine-like, if you will – then measuring workers like machines with metrics like AHT may have been more valid. But now that customers are reaching out to call centers for non routine, often complex matters, the metrics measuring their performance need to change.

    If the primary measure for success is speed, you’re likely to end up with unsatisfed customers. But if you can streamline the process for the customer AND measure success by the quality of services provided, then you’ll have a better chance of improving customer satisfaction (see Hyatt sidebar).

    “How do CHROs make sure that their organization is measuring and rewarding employees on the right criteria in tomorrow’s world?” asked DiClaudio.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

  • The customer-centric CHRO 14

    Hyatt – Caring for people so they can be their best Hyatt’s purpose is: “We care for our people so they can be their best.” ” Colleagues say everything they do is focused on their guests and making a personal connection - and it all starts even before check-in.

    Recently, Hyatt revamped its check-in experience. Front-desk employees used to toggle between legacy systems, doing 100-plus key strokes just to check in aguest. When many guests arrive, theywant to get to their rooms quickly; thesystems and the processes were gettingin the way.

    Hyatt implemented the “Colleague Advantage.” By investing in technology, a single, integrated screen was created to enable quick and easy data input, making check-in easier for guests and allowing colleagues to transform what used to be an impersonal transaction to a personal interaction. Importantly, this system also works on tablets, so the front-desk colleague is no longer tied to the desk. They can get out from behind it, check a guest in with three taps on a screen and interact personally with them.

    New metrics needed A key task for CHROs is to infuence the way that the business thinks about metrics in this customer-centric world. Since CEOs and boards like hard numbers, CHROs should try to tie in HR efforts with those metrics.

    For example, rather than focusing on AHTs, you can use technology and D&A to demonstrate that after certain customer service training programs were offered or compensation plans were changed to reward customer-centric behaviors:

    In-store sales increased

    Overall cost of goods sold decreased

    Customer retention and renewal rates, and cross-selling increased

    Customer complaints were down

    Employee satisfaction increased

    Use of these types of metrics will also point out where you can focus your efforts to increase value to customers.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independen t member firms affiliated with KPMG International Cooperative (““KPMG Internationa”l”), a Swiss entity. All rights reserved .

  • 15 The customer-centric CHRO

    Equipping your people for tomorrow’s world How do CHROs ensure that their organizations are hiring the right people and also training them to succeed in the new customer-centric world?

    As discussed above, when it comes to customer service agents or call center personnel, you want employees with good negotiation skills and the ability to listen, problem solve and project empathy.

    There are computer-based programs available that can analyze and measure these some of these qualities (e.g., empathy). For example, there are software and virtual reality programs that can use facial recognition and eye tracking to measure people‘s emotion and moods, offering insight into whether they possess these qualities and skills.

    In addition, there are training programs you can offer to current employees to help them gain or enhance these skills (e.g., making eye contact, exhibiting positive body language, negotiating in a manner that defuses customer anger and results in win-win outcomes, projecting positive attitude or empathy).

    Bear in mind that customer calls are typically stressful ones, so you need to do your best to keep your employees fresh and in a good state of mind to avoid “burn out.” Celebrating success stories and providing recognition awards are a good way to keep employees motivated and in a positive frame of mind.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

  • The customer-centric CHRO 16

    In-N-Out Burger: Employees – The Secret Ingredient According to Denny Warnick, Vice President of Operations, In-N-Out Burger;

    “ Quality and customer service are two of the most important values that our founders, Harry and Esther Snyder, established for us in 1948, and we are committed to maintaining an intense focus on those areas today.”

    “ That vision lives on in our company today through our President, Lynsi Snyder, who believes strongly that our Associates should be treated like family, and in the importance of a work environment that is positive, enthusiastic, and customer-focused.”

    “ We place a strong emphasis on training and development for all of our Associates. We believe that these things, along with a higher pay structure and flexible scheduling, provide some of the best ways to take care of our great team. At In-N-Out Burger, we have high standards in quality and service and it’s only because our people can deliver on that.”

    “I w ent to an In-N-Out for the frst time and the person at the counter explained the menu to me, really helping me decide what to order. The service was very helpful.”

    US 2018 respondent from KPMG Customer Experience Excellence Analysis

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG International””), a Swiss entity. All rights reserved.

  • 17 The customer-centric CHRO

    Seven key CHRO action steps Here are some steps CHROs can take to build a customer-centric culture, breathe new life into their talent management strategy, transform their HR function for the future, and have their HR departments play a more valuable role in their organization’s success.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. “ ”

  • “© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG ”International”), a Swiss entity. All rights reserved.

    18 The customer-centric CHRO

    Learn from your customers: Reach out to your customers and ask them how their in-person visits or customer service contacts could have been better. Also, get their insight on how to improve your products or services. Consider having HR personnel spend some time going out on customer calls with sales people (if appropriate). What you learn often will lead to specifc ways to improve HR processes and infuence employee behavior.

    Boost social media presence: Another way to learn what your customers are saying about you is by sharpening your social media strategy. Focus on building social communities around your brand. Also, make sure that Facebook, LinkedIn, and other social media pages are leveraged to hear customer feedback and also to provide insight into potential R&D and new product/service offerings. This means making sure this information is shared with appropriate business units.

    Base hiring on skill sets, not job titles: Jobs of the future will require employees to be more well-rounded, fexible, and open minded, with regard to adapting to a variety of work situations and responsibilities, as well as appreciating the benefts that the increasingly diverse workplace of the future will have. The successful customer - focused organization is intentional in the design of competencies and the profciencies a customer service employee will need for being hired, but also what they will need to develop over the course of their career.

    Consider raising compensation levels: Due to increasing use of technology, you may fnd yourself needing to hire fewer but more skilled, well-rounded, and experienced employees. This (along with the historically low unemployment rate) may require you to adjust your current compensation plans or, alternatively provide creative, non cash compensation, such as fex time, fex work, off-site work locations, etc.

    Provide training to both new hires and current employees:This is essential for employees who will have contact with the public (clients, customers, patients, etc.). Soft skills, such as exhibiting empathy, demonstrating positive body language, building rapport, negotiating, connecting the dots, and problem resolution, will be critical to your organization’’s success. Encourage employees to come up with ideas for training programs they’d like to take, in addition to what your organization offers.

    Partner with your organization’s analytics or customer insight group:They can help you determine who your customers are and what they want. (AI and D&A technology will be invaluable here.) This, in turn, will guide the type of targeted employee training you’ll want to offer to address your customers’ needs and “pain points.”

    Build an engaged, empowered workforce:You can’’t simply order your workforce to become more engaged; it has to happen organically. But you can aggressively promote and market customer satisfaction success stories and their impact on the company’s performance. Also, consider offering recognition awards from both management and colleagues alike to keep employees motivated. These recognition awards and ceremonies can help break down departmental silos if they showcase individuals in different departments. In addition, ongoing feedback and verbal encouragement from supervisors can play a big role in keeping employees engaged and energized.

  • The customer-centric CHRO19

    Final thoughts

    Today’s customers have more choices and easier access to information than ever before. And loyalty is not as important as it used to be.

    Unhappy customers are not only willing to walk away more quickly, they can tap into social media and poison the water for potential customers.

    5 Business 101: The benefits if customer-centricity, Justyna Polaczyk, LiveChatBlog, Customer Service, November 24, 2017

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. “ ”

  • 20 The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG International””), a Swiss entity. All rights reserved.

    That’s why so many organizations are embracing a customer - centric focus in order to increase customer satisfaction, value, and retention, which in turn helps them compete more successfully and drive proftable growth. And the data bears this out.5

    CHROs must play a key role in driving this customer-centric philosophy and approach throughout the organization by recruiting and hiring the right people, providing training programs to promote a better customer experience, and advocating for metrics and compensation plans that recognize and reward the right behaviors.

  • 21 The customer-centric CHRO

    Why work with KPMG?

    Today’s customers are better informed, better connected, and more demanding than ever before. Customer experience is overtaking price and product as the number - one brand differentiator. Your people are your number one business asset delivering that experience. That is why KPMG is decidedly human.

    Organizations are investing record amounts on customer-related initiatives, but not all are seeing a credible return on investment.

    KPMG combines brand governance experience in strategy through implementation—as well as far-reaching industry and functional knowledge— to create better customer outcomes that produce better business returns. We help our clients improve their marketing capabilities, align around a shared customer agenda and life cycle, across the marketing, sales, service and commerce functions, connecting the middle and back offce.

    The resulting organization is closer to customers and can deliver interactions that are seamless, responsive, relevant, and consistent, helping companies build greater loyalty and wallet share. KPMG works alongside organizations on their journey to become customer centric, identify the strategic workforce implications, and enhance brand governance opportunities to increase revenue.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

  • The customer-centric CHRO

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    22

    KPMG can help your organization evolve into a connected enterprise that meets the demands of today’s informed, connected consumers.

    Focused on helping make the right investments and enhancing brand governance return, we work alongside organizations across their entire journey to become customer - centric, from strategy to design to implementation.

    Why KPMG? We know how your business works and we know how to get things done. Our global network of talented professionals combines technical brand governance experience with practical business experience in consumer-facing industries, helping your organization address each capability across a connected enterprise—down to the detail—in the right context for your business functions.

    As a leader driving the people agenda, KPMG helps organizations navigate the evolving workplace, drive a dynamic employee experience and position the HR organization as a source of innovation and driving business outcomes.

    Awards and accolades ALM Intelligence • Vanguard Leader in Sourcing Strategy

    Consulting 2018

    • Vanguard Leader in ProcurementOperations Consulting 2018

    • Vanguard Leader in LogisticsManagement Consulting 2017

    Gartner, Inc • Gartner Market Guide for Supply

    Chain Strategy & OperationsConsulting, 2018, 2017, 2016

    KPMG is a market leader in helping our clients evolve into a connected enterprise and leading organization:

    • Forrester Wave™: Business Transformation Consultancies,Q3 2017

    • HfS Blueprint Report: DigitalTechnology Strategy andConsultancy Services, 2017

    • IDC MarketScape: KPMG is aleader in digital transformationconsulting and systemsintegrations services

    • ALM Vanguard: KPMG is a leader inHR Operations Consulting, 2018

    • ALM Vanguard: KPMG is a leader in Workforce Managing Consulting, 2018

    Get connected now!

    Is your business a connected enterprise? Try our free diagnostic tool to fnd out.

    1Source: http://spendmatters. com/almanac/kpmg/

    Spend Matters • 2014, 2015,

    2016, 2017,2018 SpendMatters 50/50Provider toKnow

    https://kpmgsourceeu.eu.qualtrics.com/jfe/form/SV_9oGuCItpynz32e1

  • 23 The customer-centric CHRO

    Authors

    Connect with us to fnd out how we can help you build a customer-centric HR organization:

    Terry Walls Managing Director, Advisory Customer Solutions KPMG LLP

    404-614-8650

    678-296-9680

    [email protected]

    Claudia M. Saran Principal People & Change KPMG LLP

    312-665-3088

    312-952-5550

    [email protected]

    Terry Walls leads KPMG’s Customer Service transformation practice. With more than 23 years of experience, he is passionate about helping his clients develop and implement customer service strategies that improve their operations, improve customer experience, drive growth and beneft their bottom line. He specializes in customer loyalty and retention, customer experience and interaction analytics, customer service strategy development, and large-scale contact center implementations, across all industries - including consolidations and off-shore managed service models.

    Terry is also the author of pending and recognized patents that cover customer service, customer ownership, service interaction analytics and churn analytics.

    Claudia M. Saran has more than 25 years of global consulting experience leading client engagements in the areas of organizational and cultural transformation, talent management, change management, organization design and HR strategy optimization. She enjoys working side-by-side with business leaders across industries to advance their people agenda. Claudia is passionate about helping customers understand how customer engagement and workforce strategies are critical to success for the 21st Century Enterprise and implementing plans for their organization to set them up for the future.

    Claudia is a Principal in KPMG LLP’s Advisory Practice, and the US national service line leader for People & Change; she also serves on KPMG’s Women’s Advisory Board.

    © 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

    mailto:[email protected]:[email protected]

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    kpmg.com/US/ConnectedEnterprise

    Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

    © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (““KPMG International””), a Swiss entity. All rights reserved. Printed in the USA.

    The KPMG name and logo are registered trademarks or trademarks of KPMG International.

    CREATE. | C RT105299A | O ctober 2018

    https://home.kpmg.com/us/en/home.htmlhttps://twitter.com/kpmg_ushttps://www.facebook.com/KPMGUShttps://www.linkedin.com/company/kpmg-ushttps:/plus.google.com/111087034030305010189/postshttps://instagram.com/kpmghttps://www.youtube.com/user/KPMGMediaChannelhttps://advisory.kpmg.us/services/customer-experience/connected-enterprise.html

    CoverContentsChanging customer needsrequire new approach to workHR’s critical role in elevating the customer experienceThe CHRO’schanging rolePowering a smarter HR with D&ATechnology transforming the workforceMaking the customer-centric case to managementEquipping your people for tomorrow’s worldSeven key CHRO action stepsFinal thoughtsWhy work with KPMG?Get connected now!Authors

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