This whitepaper, “CXM’s Coming of Age: ‘Skin in the Game’ Taking Center Stage” explores the paradigm shift in the customer experience management (CXM) industry towards value-based commercial constructs. In an era characterized by rapid change and economic challenges, businesses are facing the need for consolidation and efficiency while navigating the disruptive force of AI. Amidst this landscape, the customer remains the focal point, and engagement, retention, and monetization of customers are top priorities for CX service providers.
The whitepaper acknowledges the increasing pressure on service providers to meet ever-changing client demands while dealing with budget constraints and heightened efficiency expectations. It highlights the prevalence of intense deal negotiations and renegotiations of contracts, reflecting the era of unreasonable buyer expectations. As a result, service providers find themselves in a delicate balancing act to deliver exceptional customer experiences while managing commercial complexities.
To address these challenges, the whitepaper explores the emergence of value-based commercial constructs as a preferred path toward win-win solutions. This shift moves beyond traditional contracts based solely on resources employed and incentivizes service providers to have “skin in the game.” The value-based-first mindset represents a significant transition in the industry.
The whitepaper, authored by BCG and ResultsCX, delves into the key drivers that have brought about this pivot toward value-based models. It explores these drivers from the perspectives of both CX service buyers and providers. The key drivers identified include a focus on paying for performance rather than operations, co-owning and co-funding transformation agendas, and embracing change to differentiate and elevate relationships.
Furthermore, the whitepaper delves into the various commercial constructs shaping the CX service provider industry. It compares traditional models with consumption-based and value-based models, shedding light on unique pricing and engagement approaches. By understanding these constructs, readers can gain valuable insights into the evolving CX landscape and the pathways to success.
In addition to exploring these key aspects, the whitepaper also offers a MythBusters Guide to Value-based Models, dispelling common misconceptions, and provides guidance on navigating complexities and embracing change.
Overall, the whitepaper serves as a comprehensive resource for CX service providers, buyers, and industry professionals seeking to understand and adapt to the shifting dynamics of the CXM industry and the growing importance of value-based commercial constructs.