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Customer-centric leadership is the new growth indicator: Zendesk and ESG

Companies that employ the best of service and support methods drive dramatically better agility and success amid the COVID-19 pandemic.

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  • The new report, CX Champions: How CX Leaders Who Improve Their Game Drive Business Successsurveyed 1,000+ CX managers and executives in North America, Europe, Asia Pacific, and Latin America to better understand their CX investments.
Customer-centric leadership is the new growth indicator: Zendesk and ESG
Customer-centric leadership is the new growth indicator: Zendesk and ESG

Zendesk presented new research results today in collaboration with Corporate strategy group (ESG) Show how companies that invest in customer experience (CX) reap the benefits.

The global study found that over the past six months there has been a clear correlation between companies with more mature customer experience skills and greater business success in areas such as market share, higher customer spend, and dynamic processes.

The research also found that companies around the world are adapting to new forms of remote working and constant insecurity in 2020, citing more than three-quarters of medium-sized businesses and businesses (78%) and nearly two-thirds of small businesses (65%) indicate that customer-centric agility has gained in importance as a result of the COVID-19 pandemic.

“Companies are under increasing pressure to outperform the competition and grow their businesses. This is even more challenging as companies adjust to the impact of a global pandemic and the uncertainty that it brings,” he said. Colleen Berube, CIO and Senior Vice President of Operations at Zendesk.

“By working with ESG, we wanted to validate the link between a company’s ability to deliver a quality experience and better business results. The relationship is clear. We hope that these insights into the relationship between customer focus and business success can help companies learn from those ahead of the CX scale, “he added.

The new report, CX Champions: How CX Leaders Who Improve Their Game Drive Business Successsurveyed 1,000+ CX managers and executives in North America, Europe, Asia Pacific, and Latin America to better understand their CX investments. From the research, ESG developed a CX Maturity Scale that divides companies into three customer service maturity levels based on seven key characteristics that cover how companies are using their data, technology and support teams to drive better performance. The ESG then classified the companies into three maturity categories: Appetizers (Beginner): Presentation of zero to three of the seven characteristics; Riser (Advanced): You have four to five of the characteristics; Y. Champions (Expert 🙂 who meet at least six of the characteristics.

Some key findings from the report show that companies that invest in CX are seeing significant benefits, including:

  • Faster growth: Even during the pandemic, medium and business champions were found 8.7 times more likely than beginners to significantly increase customer spend. For small business champions, this number increases to 9.2 times.
  • Larger market share: Medium and enterprise champions are 3.3 times more likely to have grown their customer base in the past six months. Small business champions saw similar growth, being 3.6 times more likely to grow their customer base over the same period.
  • Support at a high level: The champions also attracted more investment and support from high-level leaders within their organization. For example, high-ranking champions executives from medium-sized businesses and corporations saw customer service as a differentiating factor 3.8 times more often.

“Our research has found a clear link between CX excellence and business growth. In addition to achieving better results on traditional service metrics such as time-to-resolution and CSAT, companies in the champion phase also have positive business results on customer spend, loyalty, and retention at the CX board level as a business priority, ”said Adam DeMattia, director for personalized research at ESG.

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