Posted: 1st December 2016

Government to Create CX Law?

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Theresa May announced on Tuesday that her government would put forward a consultative green paper advocating closer scrutiny of privately owned business with the aim of increasing public trust in them.

Among proposals that companies will be required to publish the scale of disparity between chief exec pay and that of average staff members, the paper also includes measures on “ensuring the ‘voice’ of the customer and employee is better represented on company boards”.

While this gives government backing to something we all know makes good business sense, this CX call to action poses a number of interesting questions.

For example, will government then be in a position to compel companies to adopt customer experience and voice of the customer programmes? How could this be enforced? What would the penalties be for ignoring this policy/legislation? Should CX be mandated by law, and how effective is an enforced CX or VoC programme likely to be, given that we know senior executive and CEO buy-in is integral to making CX work. And would government help fund technologies to give privately owned companies CX capabilities?

Aside from all the above unanswered questions and the fact that this is currently a green paper designed to stimulate discussion, we may wonder how many large companies are not already listening to their customers’ voice and ‘doing’ in CX in some shape or form. They would certainly be behind the curve given the huge volume of credible evidence suggesting that customer centricity and effective CX drives revenue growth (see below). It will be interesting to see how things unfold and how much debate there is about this particular element of the green paper.

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