Decoding the Customer

Decoding the Customer


How rituals fortify customer experience as a competitive advantage: CX Mini Masterclass – E70

February 06, 2020

This CX Mini Masterclass explores the concept of organizational rituals and the role they play in reinforcing culture and strengthening customer experience as a competitive advantage. Show host and customer experience expert, Julia Ahlfeldt, shares some findings from her recent research on team rituals in the business context. If you are keen to learn about this cutting edge topic and hear some tips for shaping customer-centric rituals in your organization, then this episode is for you.




An emerging topic

Episode 66 covered the link between HR strategy and CX culture. HR strategy is the foundation of team culture, whether that's a customer-centric culture or not. But there are many other things that influence attitudes and behaviors in the workplace. Rituals come from the culture, but also reinforce the culture, and for this reason, rituals are an emerging topic in CX management. It's a particularly important area of focus in terms of how leaders can ensure that team culture supports business objectives, like the customer promise (see episode 69 for a detailed explanation of the customer promise).
Rituals haven't been a major area of focus of CX professionals, so there is limited coverage and thought leadership on the topic. Business management academics have been pondering the role of rituals in the business context and, not surprisingly, this research sheds light on how this aspect of business management might be applicable to CX management.

Defining "rites" and "rituals"

Intuitively, we all probably understand what business rituals are: ongoing actions or interactions that reinforce norms. This interpretation is correct, but a duo of academics from the US and Brazil have come up with a definition that really puts things in perspective. 

Ritual action, it is proposed, is a form of social action in which a group’s values and identity are publicly demonstrated or enacted in a stylized manner, within the context of a specific occasion or event. - Gazi Islamro and Michael J. Zyphur

Examples of this might include a dinner for employees, a speech welcoming a new hire or a manager’s weekly team huddle. It’s important to note that many scholars use the words “rite” and “ritual” interchangeably. In practice, people often refer to specific types or examples of ritual action as “rites”, and the term "rituals" as a broad generic descriptor (Islamro and Zyphur's research goes into more detail on the background of this definition, should you wish to jump down the rabbit hole on this topic).
Different types of rituals
Not all rituals serve the same purpose, and understanding the difference between the types of rituals clarified how these might be applied in a business context.

*
Rites of passage serve to “socialize” participants as an accepted member within the broader community. Rites of passage would include things like new hire onboarding.

*
Rites of enhancement are public celebration of commendable behavior, intended to showcase model behavior and recognize individuals. An example of this would be a CEO shout-out in a monthly team newsletter.

*
Rites of renewal are a stabilizing function within an organization. These rituals rejuvenate and reinforce values over time. A Manager’s weekly huddle is a great example of a rite of renewal.

*
Rites of conflict resolution are just what the sound like,