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In today’s business landscape, where customers are more empowered than ever, creating exceptional customer experiences isn’t just a nice-to-have; it’s a must. Blake Morgan, a customer experience (CX) expert and author, has spent over 15 years helping some of the world’s biggest brands deliver meaningful and transformative customer experiences. In her conversation with Melissa Perri on The Product Thinking Podcast, Blake provides deep insights into the evolving nature of CX, highlighting the importance of leadership, customer-centric cultures, and how technology is reshaping the field.

Let’s break down the key lessons for founders and product managers from Blake’s experience into actionable advice that can help you design better customer experiences.

🫂 The Evolution of Customer Experience: Insights from Blake Morgan

🎥Watch the full episode here

📆 Published: October 16th, 2024

🕒 Estimated Reading Time: 3 mins. Time saved: 45 mins🔥

🌱 What Exactly is Customer Experience?

Customer experience goes beyond the touchpoints you might think of in marketing or support. It’s about every interaction a customer has with your brand. Blake emphasises that CX is not just a division, nor is it a role confined to a department—it’s a decision that every employee makes daily.

Key Takeaways:

• CX is a mindset, not a job title. It’s not enough to hire a Chief Customer Experience Officer and assume the job is done. Leadership must drive a customer-centric culture.

• Everyone is responsible for CX. Each employee, from product developers to support staff, must prioritise customer outcomes.

• Break down silos. Foster cross-functional collaboration, especially between teams like product development, customer support, and sales, to ensure a unified approach to customer satisfaction.

For product managers, this means thinking beyond the product itself and considering how every interaction—from onboarding to support—impacts customer loyalty.

🔧 The Eight Laws of Customer-Focused Leadership

Blake’s book, The Eight Laws of Customer-Focused Leadership, outlines a framework for creating a culture that puts customers at the centre. It’s about mindset shifts, from leadership to frontline employees, and how businesses can systematically make customer-first decisions.

Key Takeaways:

• Start with curiosity. Leaders should regularly engage with both employees and customers to understand their needs.

• Balance short-term gains with long-term growth. Leaders must be mindful of driving immediate profitability while laying the foundation for long-term customer loyalty.

• Success is a shared responsibility. Employees who feel supported and engaged are more likely to make decisions that benefit customers, too.

For founders, this means that creating a great CX starts with the leadership setting the tone. If you’re not focused on customer success from the top, it won’t filter down effectively to the rest of the organisation.

🔄 Creating Feedback Loops That Drive Product Success

One of the most powerful insights from Blake’s discussion is the importance of feedback loops. Companies like Slack actively integrate feedback into their product development processes by placing engineers alongside customer support teams. This real-time exchange of customer insights and engineering capabilities allows them to iterate quickly on user needs.

Key Takeaways:

• Integrate customer feedback into every stage of product development. Continuous feedback ensures that the product team is aligned with what customers truly want.

• Build cross-functional collaboration. Encourage teams that traditionally don’t interact—like engineering and customer support—to share insights.

• Make decisions data-driven. While gut instinct has its place, customer data should guide most of your product decisions, helping you de-risk solutions.

For product managers, ensuring the product you build solves the right problems requires direct involvement with customers and support teams. Make feedback an integral part of your process to stay ahead of evolving needs.

👩‍💻 Measuring Success in Customer Experience

How do you quantify success in customer experience? Is it simply about NPS scores, or is there more to it? Blake discusses emerging metrics like “earned growth rate,” which focuses on how many new customers come through existing customer referrals, highlighting the value of referred customers who are more loyal and profitable.

Key Takeaways:

• Track what matters. Traditional metrics like NPS have their uses, but newer metrics, such as earned growth rate, can provide deeper insights into long-term customer satisfaction.

• Be wary of gaming metrics. NPS and customer satisfaction scores can be manipulated by employees eager to boost numbers. Focus on genuine customer feedback and dig in to find out the why.

• Talk to customers directly. Often, qualitative data from real customer conversations is just as critical as quantitative metrics.

For founders and product managers, the lesson here is to look at both short-term and long-term metrics when evaluating your customer experience efforts. Don’t just chase numbers—ensure you’re solving real customer pain points.

🤖 The Role of AI in Customer Experience

AI has been a game-changer for CX, particularly in areas like contact centres. Blake highlights how AI can improve efficiency, automate mundane tasks, and provide more personalised customer interactions. However, she warns that AI implementation needs to be human-centred to avoid employee pushback.

Key Takeaways:

• AI can streamline but not replace human empathy. AI should handle routine tasks, while human agents should focus on complex, high-empathy interactions.

• Change management is key. AI can cause friction if employees feel it’s taking away job elements they rely on. Proper training and communication are essential to smooth transitions.

• Don’t implement AI for the sake of cost-cutting. Many companies make the mistake of focusing purely on cost reductions without considering the impact on the customer experience.

For product managers, AI tools can automate customer service, improve data collection, and offer personalised recommendations—but they should be deployed thoughtfully. Always measure the impact on both employees and customers.

💡 Learning from CX Failures: Avoiding PR Nightmares

Blake shares an example from Air Canada, where a chatbot mishandled a bereavement request, leading to a PR disaster. This serves as a cautionary tale for businesses adopting new technologies without proper testing or accountability.

Key Takeaways:

• Test thoroughly before launch. AI tools, chatbots, and other customer-facing technologies should be rigorously tested before going live.

• Take responsibility for failures. If your technology fails, take swift action to fix it and compensate customers appropriately.

• Humanise your CX strategy. In complex situations, make sure real people are available to solve customer problems. AI isn’t always the right solution.

Founders and product managers need to ensure that tech doesn’t replace genuine customer service, particularly in high-stakes scenarios. Always have a human backup for critical customer interactions.

📈 Where Customer Experience is Heading

As customer expectations evolve, so too must businesses. Blake sees a future where digital and physical experiences are seamlessly integrated, offering more personalised, frictionless interactions. Companies like Reformation are already leading the way with in-store technology that enhances the shopping experience.

Key Takeaways:

• Bridge the physical and digital. Create customer experiences that leverage both digital tools and real-world interactions.

• Personalisation is key. The future of CX is hyper-personalised and contextual, meeting customers where they are, whether online or offline.

• Stay curious and adaptable. Technology and customer expectations will continue to evolve, and businesses need to keep up.

For founders and product leaders, this means thinking holistically about your customer experience—how can your products and services interact with customers in meaningful ways, no matter where they are?

🌟 Final Thoughts: Putting the Customer at the Center

Blake Morgan’s insights make it clear: a company’s success hinges on its ability to consistently deliver exceptional customer experiences. It’s not just about using the latest technology or measuring the right metrics—it’s about creating a culture where customer needs are at the core of every decision.

Final Key Takeaways:

• Customer experience is everyone’s job. Every team, from product development to marketing, must work toward creating a seamless, valuable customer experience.

• Leadership sets the tone. Founders and executives need to prioritise customer satisfaction and create a culture where employees are empowered to make customer-centric decisions.

• Innovation is key, but it must be human-centred. Use AI and other technologies to enhance CX, but never at the expense of human connection and empathy.

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📅Timestamps:

• 00:00 - Intro

• 02:11 - Decoding Customer Experience

• 05:19 - The Eight Laws of Customer-Focused Leadership

• 07:51 - Measuring Success Beyond the Numbers

• 11:15 - The Pitfalls of Gamified Metrics

• 14:00 - Advocating for the Right Metrics

• 16:31 - Best Practices for Gathering Customer Feedback

• 18:41 - Building a Unified Customer Experience

• 20:37 - Avoiding Common Customer Experience Mistakes

• 23:05 - Leadership's Role in Customer Experience Transformation

• 23:43 - Employee Experience and Its Connection to Customer Experience

• 24:04 - The Impact of AI on Customer Service and Contact Centers

• 26:15 - AI as a Cost-Cutting Strategy and Chatbot Failures

• 29:06 - Best Practices for Chatbot Implementation and Customer Interaction

• 31:46 - The Future of User Interfaces and AI in Customer Experience

• 35:16 - Merging Digital and Physical Experiences in Retail

• 37:25 - Advice for Product Managers: Becoming Customer-Centric

• 38:36 - Outro