Annette Franz on why fixing churn starts with customer understanding

Episode Transcript

Annette Franz 00:00
I kept hearing people talk about customer-centric messages, customer-centric individuals, and customer-centric departments. But I don’t think people truly understand what it means to be customer-centric.

Customer-centricity is not about just one person or one message—it’s about the entire organization. It has to be enterprise-wide. Customers expect a consistent and seamless experience across all departments, channels, and touchpoints. That consistency doesn’t happen when only one part of the organization is customer-centric.

Niraj Ranjan Rout 00:42
Welcome. Our guest today is Annette Franz, a true champion in the field of customer experience. She has spent the last three decades in customer experience and service, with the past 10 years dedicated to running her consultancy, CX Journey. 

Through this venture, she provides expert guidance and strategic advice on customer experience. Annette, thank you for joining us today. I’m really looking forward to this conversation and learning from you.

Annette Franz 01:19
Likewise! Thank you so much for having me. I know we have a great topic to discuss today, and I appreciate the opportunity.

Niraj Ranjan Rout 01:25
Annette, let’s start with your consultancy, CX Journey. What inspired you to launch this company, and what was your vision when you started? How has it evolved over the last decade?

Annette Franz 01:45
That’s a great question. I started CX Journey because I wanted to focus on the work I love—engaging in meaningful projects, writing, and speaking—without being constrained by a corporate structure. It allowed me the flexibility to choose the projects that truly align with my passion.

As for evolution, I’d say the core mission has remained the same: putting the customer at the center of the experience. Whether it’s about fostering a customer-centric culture, improving customer understanding, or enhancing employee experience, the goal has always been to keep people front and center.

Niraj Ranjan Rout 03:03
That’s fascinating. Could you share some notable examples from your work at CX Journey where your involvement had a significant impact?

Annette Franz 03:16
Certainly, when I begin working with a client, I conduct interviews with leadership, employees, and customers to assess the organization’s current state. Often, companies come to me with a specific issue in mind, but my assessments usually reveal deeper, more systemic challenges.

For instance, I worked with a manufacturer that sold primarily through resellers. They mistakenly viewed the reseller as their primary customer rather than the end user. Shifting their mindset helped them focus on building products for the actual customers using them, which significantly impacted their overall strategy and engagement approach. These fundamental shifts in perspective often yield the biggest results.

Niraj Ranjan Rout 06:10
Let’s take a step back and talk about the tipping point for your clients. What typically drives companies to seek your expertise?

Annette Franz 06:31
Two common triggers are customer churn and competitive pressure. Organizations often realize they are losing customers but don’t fully understand why. Others recognize that while they may currently be market leaders, their competitors are catching up.

Another scenario I frequently encounter is new Chief Customer Officers who are uncertain about their role and responsibilities. They seek guidance on how to implement a customer experience strategy that aligns with business goals.

Niraj Ranjan Rout 08:14
That’s interesting. Traditionally, challenges like churn are often linked to sales, marketing, or go-to-market strategies. Have you seen a shift in how leaders perceive the role of customer experience in addressing these issues over the past decade?

Annette Franz 09:04
It’s a mixed bag. Some leaders fully understand the importance of customer experience, while others still see it as secondary to sales and marketing. The CEO’s perspective is critical—if they grasp the significance of customer experience, the organization is more likely to embrace it.

I’ve also been focusing on startups and smaller companies because it’s easier to instill a customer-centric mindset from the beginning. In larger, long-established organizations, change is possible but requires more effort. Leadership buy-in is essential. Without it, transformation is nearly impossible.

Niraj Ranjan Rout 14:35
Absolutely. I’d like to shift the conversation to your writing journey. When did you start writing books, and how did that come about?

Annette Franz 14:48
I’ve always loved writing. My career in market research started because I enjoyed both math and writing. In 2011, I launched my blog to share my knowledge and insights.

After years of writing, people suggested compiling my blogs into a book. My first book, Customer Understanding, was published in 2019, and it focused on helping businesses truly understand their customers. My second book, Built to Win, was born out of repeated discussions on customer-centric culture. It lays out the ten foundational principles necessary to create such a culture.

Niraj Ranjan Rout 18:25
That’s great to hear. Can you tell us more about Built to Win? What message are you trying to convey?

Annette Franz 18:37
Built to Win is about deliberately designing a customer-centric culture. The book clarifies that customer-centricity isn’t about a single department or message—it must be embedded throughout the entire organization. The feedback has been fantastic, with many readers using it as a guide in their day-to-day work.

Niraj Ranjan Rout 22:16
Let’s talk about AI and automation. How do you see these technologies impacting customer experience and the roles of CX professionals?

Annette Franz 22:16
AI and automation are here to stay, and they offer numerous benefits. Beyond chatbots, AI can enhance customer experience through personalization, predictive analytics, and workflow automation. For CX professionals, AI aids in data analysis and democratization, making insights more accessible across the organization.

The key is to use AI to augment human capabilities, not replace them. It should eliminate repetitive tasks, freeing up employees to focus on higher-value work.

Niraj Ranjan Rout 25:17
That’s an insightful perspective. Before we wrap up, can you recommend a few must-read books on customer experience?

Annette Franz 25:41
Of course! Besides Built to Win, I recommend books by Jeanne Bliss, such as Chief Customer Officer. Answering the Ultimate Question and Outside In are also great reads.

I also encourage reading beyond CX—books on leadership, culture, and employee experience, such as Everybody Matters by Bob Chapman and books by Chris Dyer on company culture. If anyone needs further recommendations, I’m happy to share more!

Niraj Ranjan Rout 26:55
Thank you, Annette. It’s been a pleasure speaking with you and learning from your experiences.

Annette Franz 27:00
Thank you for having me. It was a great conversation!