Understanding CX buying committees and decision dynamics
CX data is now more integrated with other departments. As a result, CX tech buying decisions include more stakeholders. Vendors need to understand this dynamic.
The term buying committee may sound formal, but it reflects how complex things have become for CX leaders as they try to keep pace with fast-changing technology.
Not long ago, when contact centers were on-premises, hardware-based systems, they operated separately from the rest of the organization. The technologies were largely purpose-built with complex integrations, and buying decisions were primarily made by contact center leaders, and for the contact center.
As technology evolved -- especially the cloud and now AI -- the contact center has become more symbiotic with the rest of the organization. As a result, buying decisions can no longer be made in isolation, solely with the needs of the contact center in mind.
Equally important, the business focus has shifted from contact center to customer experience (CX), where delivering great CX goes beyond what happens in the contact center. Furthermore, with AI, all the new data coming from CX interactions is of value to many parts of the organization, and not just the contact center.
For these reasons -- and others -- CX and contact center leaders can no longer be the only stakeholders when making CX technology buying decisions. These developments have sparked a committee-based approach that reflects the breadth of needs across the organization that will be affected by the adoption of new technology.
Who is on the CX buying committee?
The answer to this question largely depends on how far the business has shifted its paradigm from customer service to customer experience. Technology-wise, a good indicator is how extensively the cloud has been adopted, as this is the key enabler for integration among various platforms across the organization.
More recently, another signpost would be AI adoption, since these new technologies are driving the creation of new CX data streams and the analytics to extract valuable data for inside and outside the contact center.
If organizations are far down these paths, CX data has a greater chance to affect operations across the business. Even if organizations are modestly advanced here, CX buying committees would typically include the following business functions and stakeholders:
Contact center and CX leader. This person would be the prime advocate for the buying strategy since the main focus for new technology is contact center modernization.
IT leader. Organizations need to consider many factors when integrating new tech with existing contact centers and other platforms across the company.
Executive leader. Often, CX is a top-down, strategic imperative. Executive input is needed to ensure new investment aligns with brand strategy, business priorities and AI plans.
Finance leader. This stakeholder is the economic buyer and needs to see a clear business case, ROI plan and a credible risk-reward strategy.
Line-of-business leaders. These stakeholders typically include marketing and sales departments as their customer interactions affect CX in different ways than the contact center. With AI, lines of business are meshing in new ways. And, more than ever, these departments rely on customer data that flows through the contact center.
Others. In more advanced scenarios, other stakeholders in the CX buying decision would include the following:
Contact center end users to ensure adoption.
Legal department for compliance.
AI governance and privacy.
Analytics teams for quality assurance and integration with business intelligence databases.
How CX buying committees make decisions
By their nature, committees decide on a consensus basis. Unlike earlier times, when contact center leaders would make buying decisions independently, today's technologies require a more holistic approach. The fundamental definition of the contact center is changing to reflect CX evolution and how AI makes data more valuable for businesses.
Contact center technology buying decisions must now be made in a broader context.
All these developments highlight a new reality where contact center technology decisions must be made in a broader context. Contact center and CX leaders have a clear vision for these new technologies. For that reason, they're still in a strong position to drive these investment decisions. However, in some cases, that vision may be lacking, and other departments may know what's best for the business. As such, there will not always be a consensus based on equal input from all.
Aside from this dynamic, each stakeholder will have different priorities and expectations from new technology investments. With more stakeholders, the committee will have a harder time pleasing everyone, and the decision-making process will be longer. In cases where a fair balance cannot be met, some external arbitration may be needed.
Each CX buying situation may be different. But all these facets are relevant to vendors when trying to close a deal. The merits of the technology are not enough in today's market. Perhaps just as important is understanding how buying decisions are made. To help the buyer reach consensus, a different value proposition is needed for each stakeholder -- and this is why understanding the committee approach is critical for CX vendors.
Jon Arnold is principal of J Arnold & Associates, an independent analyst providing thought leadership and go-to-market counsel with a focus on the business-level effect of communications technology on digital transformation.
