Why Silos Damage Customer Experience

Are you struggling with Silos in your industry? From diverse departments to dispersed communication channels, silos have emerged as a common part of business structure in many industries. Yet, they could be more of a hindrance than a help to your company.

In an ideal world, silos would nurture expertise within the workforce, and make sure that each team feels responsible for their role in helping the company succeed. However, the trouble is that they actually encourage behaviour that might be beneficial for one specific group, but not the organisation as a whole.

In an era where customers demand a seamless experience from their favourite brands, silos could be holding you back from business success, particularly if “silo mentality” is changing the way that your business thinks and interacts. In fact, 95% of organisations believe that a lack of cooperation between departments could be stopping them from accessing true digital transformation in the age of customer experience.

The Truth About Siloed Companies

So, why do siloed companies have such a detrimental effect on customer experience? The simple answer could be a lack of coordination. When so many different sectors within a business exist in different environments, it’s difficult to make sure that everyone is working towards the same goal. In fact, research has found that while 46% of respondents believe that a digitally-transformed customer experience is key to differentiating their brand in the modern marketplace, most people simply can’t access the communication and collaboration they need, because of siloed workplaces.

In one whitepaper: “Why Silos Damage Customer Experience” we see that:

  • 70% of companies are far from achieving integrated channels and complete customer pictures. This means that businesses are struggling to maintain the same voice and level of care for their customers throughout channels and departments.
  • 38% of customer experience professionals think that the complexity of the modern customer and the growing number of connectivity touchpoints are some of the biggest hurdles to delivering great customer experience.
  • 41% of customer experience professionals also say that organisational structure continues to be a serious barrier to providing a great customer experience.

When a silo mentality persists in the workforce, departments can’t collaborate properly with each other, and different modes of communication simply can’t add up – leading to frustration for customers and contact centre agents alike. When different departments are dispersed, customers have to explain their same problem time and time again, growing more frustrated as they continue to interact with your brand, and that’s not a good way to gain more revenue.

The Answer? Uniting the Silos

The simplest way to fight against this separation problem, and improve the customer experience for the future of broader, more versatile communications, is to unite the silos in your workforce, and ensure that information can flow naturally between departments. You could:

  • Reward collaboration between teams with cross-functional meetings where departments can see how their work contributes to the overall experience of the customer.
  • Change your business hierarchy, to develop a flatter organisational structure where employees can take more control over their position, and collaborate with people on different levels.
  • Get senior management more connected to the vision and goals of the business. Change comes from the top first, if senior management can enhance the collaboration in the business, then the rest of the organisation will follow.

Silos are a natural enemy to customer experience because they create “segments” within a business that split teams up and force them to lose focus on the company goals overall. The result is that customers are overlooked, and brand needs are misunderstood. By breaking down the barriers in your business, you could not only benefit your employees but your customers too.