Shep Hyken's Blog
February 17, 2026
This Could Be the Most Expensive Phrase in Business
This article answers the question: What phrase may be the most expensive to use in business, and why?There are certain phrases that I consider to be customer loyalty killers . Use them with your customers, and you shouldn’t be surprised if they leave you for a better experience. Phrases like:
It’s not my fault. Even if it’s not, your customers want to talk to someone who is empowered to help them.
You’re wrong. It’s just wrong to tell customers they are wrong!
We can’t do that. This is especially bad when common sense dictates they should be able to do that (whatever “that” is).
There are many, but the one that may be the most costly to use in business is:
It’s not my department.
Before we go further, there is another phrase that ranks right up there, and that is, “It’s company policy.” I struggled with which was worse to say to a customer, but in the end, for the following reasons, I chose “It’s not my department.”
One word: Friction. Customers want their problems to be solved by the first person they talk to. Our annual customer service research proves that some customers will give you a second or third chance. But one in five customers won’t. They have zero tolerance for a bad customer experience. Losing customers costs you money!
Customers hate to repeat themselves. If a customer gets transferred to “another department,” guess what they get to do next? Yes, repeat themselves. Do this too many times, and then guess what happens? Some customers will walk, and, again, that costs you money.
Time is money. If the first two examples don’t cause customers to leave, that doesn’t mean you’ve saved money. On the contrary, the time that is wasted transferring customers and making them repeat their stories is very expensive. Your employees would appreciate it if their talents were used for better, more productive opportunities than to spend time putting out fires because others were not empowered or properly trained to do so.
When It Really Isn’t Your Responsibility
There will be times that a problem really is, “Not my department,” but when that happens, handle it the right way:
Explain why. Customers appreciate an honest explanation.
If you have to transfer, do it only once. Make sure the next person they talk to is the right person.
Make a warm handoff. Before transferring the call, let the next person know why the customer is being transferred to them. Or, do an introduction with the customer on the phone. Explain what the problem is, so the customer doesn’t have to.
Circle back. A quick email or call to make sure the customer had their issue resolved will give the customer the confidence to come back.
So, how to avoid this loyalty-killing, cash-sucking phrase?
One word: Training. Employees must be trained on how to communicate, supplied with the information they need to support customers, and instructed on what not to say and do to customers. Realize that the more time a customer spends getting transferred and repeating their story, the more it costs your company. “It’s not my department” is where frustration, friction, and unnecessary expense begin.
(Perhaps in the future, I’ll write about “It’s not company policy,” my pick for the second most expensive phrase in business.)
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com . Connect with Shep on LinkedIn .
February 16, 2026
How AI Can Make Customer Experience More Human with Vinod Muthukrishnan
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
How can AI create a human-centered customer experience?
How is artificial intelligence transforming customer service interactions?
What are the most effective ways to use analytics to improve customer support and reduce unnecessary contact center calls?
How can automation help resolve frequent customer complaints, such as long wait times or repetitive interactions?
Why should companies rethink traditional metrics, such as average handle time, when evaluating customer service performance?
Top Takeaways:
AI has evolved from being just a tool to becoming an actual coworker. It can handle routine tasks and take on responsibilities like note-taking during meetings, freeing up a lot of employees’ time. This shift is radically transforming how we engage, connect, collaborate, and communicate with customers.
Brand interactions should aim to feel like engaging with a favorite human. The best experiences remember customers’ history, never making them repeat themselves, and understanding their unique preferences. They also minimize wait times and meet customers on their channel of choice.
Customers are understanding when they know you genuinely care about their issues and are actively working to resolve them. But if they have to call three times for the same issue, it becomes another problem.
If you use AI to solve problems the right way, you bring customers to your side of the equation. Instead of asking the generic ‘How can I help you?’ when they’ve already called multiple times, AI can help you acknowledge their frustration by providing customer history and knowledge base in real time, and guide you on the next best step to fixing the issue.
Using AI and analytics to predict, prevent, and preempt issues by proactively giving customers the information they need before they even ask creates a seamless experience where people rarely need to call for help.
Call containment and call deflection with AI do not mean companies stop talking to customers. It means letting AI handle routine tasks like password resets or payment verifications, so that when customers reach a human agent, the conversation can focus on more important tasks, like resolving complex issues or exploring new products.
Plus, Shep and Vinod discuss why brands that go “all-in” on AI for customer support often end up reversing their decisions. Tune in!
Quotes:
“We have to start looking at AI not as a tool or a product, but as a teammate.”
“Customer experience problems have not changed with AI. What changed is the means, ability, and affordability to offer solutions that solve those problems at scale.”
“The value and importance of the human in customer experience would go up because intuition, context, attention, and empathy, which are things that technology can mimic but not replace.”
“AI isn’t going to take your job. A human being with better use of AI is going to take your job.”
About:
Vinod Muthukrishnan is the VP & GM of Webex Customer Experience at Cisco. He is an expert in AI and innovative technology to transform how brands engage with customers, ensuring experiences are more human and personalized.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
How can AI create a human-centered customer experience?
How is artificial intelligence transforming customer service interactions?
What are the most effective ways to use analytics to improve customer support and reduce unnecessary contact center calls?
How can automation help resolve frequent customer complaints, such as long wait times or repetitive interactions?
Why should companies rethink traditional metrics, such as average handle time, when evaluating customer service performance?
Top Takeaways:
AI has evolved from being just a tool to becoming an actual coworker. It can handle routine tasks and take on responsibilities like note-taking during meetings, freeing up a lot of employees’ time. This shift is radically transforming how we engage, connect, collaborate, and communicate with customers.
Brand interactions should aim to feel like engaging with a favorite human. The best experiences remember customers’ history, never making them repeat themselves, and understanding their unique preferences. They also minimize wait times and meet customers on their channel of choice.
Customers are understanding when they know you genuinely care about their issues and are actively working to resolve them. But if they have to call three times for the same issue, it becomes another problem.
If you use AI to solve problems the right way, you bring customers to your side of the equation. Instead of asking the generic ‘How can I help you?’ when they’ve already called multiple times, AI can help you acknowledge their frustration by providing customer history and knowledge base in real time, and guide you on the next best step to fixing the issue.
Using AI and analytics to predict, prevent, and preempt issues by proactively giving customers the information they need before they even ask creates a seamless experience where people rarely need to call for help.
Call containment and call deflection with AI do not mean companies stop talking to customers. It means letting AI handle routine tasks like password resets or payment verifications, so that when customers reach a human agent, the conversation can focus on more important tasks, like resolving complex issues or exploring new products.
Plus, Shep and Vinod discuss why brands that go “all-in” on AI for customer support often end up reversing their decisions. Tune in!
Quotes:
“We have to start looking at AI not as a tool or a product, but as a teammate.”
“Customer experience problems have not changed with AI. What changed is the means, ability, and affordability to offer solutions that solve those problems at scale.”
“The value and importance of the human in customer experience would go up because intuition, context, attention, and empathy, which are things that technology can mimic but not replace.”
“AI isn’t going to take your job. A human being with better use of AI is going to take your job.”
About:
Vinod Muthukrishnan is the VP & GM of Webex Customer Experience at Cisco. He is an expert in AI and innovative technology to transform how brands engage with customers, ensuring experiences are more human and personalized.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
Top 5 Customer Service & CX Articles for Week of February 16, 2026
Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.
8 Customer Experience Failures Every Leader Should Address Now by Natalie Ruiz
(Entrepreneur) Customer experience isn’t a department. It’s a leadership decision. Every interaction a customer has with your business, from their first inquiry to how you resolve problems, signals what you value. Over time, those signals compound into trust or erosion, loyalty or churn. As companies grow, customer experience failures rarely come from neglect. More often, they come from decisions made in the name of efficiency, scale or cost control.
My Comment: We kick off this week’s Top Five roundup with an article about what NOT to do. The list of eight “CX Failures” makes for a nice checklist to confirm you’re staying away from what drives customers away.
Why Customer Service Determines the ROI of Your Marketing Spend by Shama Hyder
(MarTech) Marketing creates expectations that customer service must fulfill. When they don’t, acquisition gains turn into retention losses.
My Comment: We spend so much effort and money to acquire customers; we shouldn’t risk losing them due to customer support and CX. This article demonstrates the direct effect of customer service on marketing and explains why they must be connected. I’ve long argued that customer service and CX are marketing strategies, not departments. There are plenty of facts, stats, and ideas to help build repeat business and reduce churn.
Why Your Digital-First CX Strategy is Failing (and how to fix it) by Marie Angselius
(CustomerThink) For years, the prevailing wisdom in customer experience (CX) has been to steer customers towards digital channels. The promise was a win-win: customers would get quick, 24/7 self-service and companies would slash operational costs.
My Comment: I’m a fan of digital-first customer support, but there must always be a human backup for customers who choose to speak with a live agent or are forced to do so when they can’t resolve their issue through self-service. The author writes about the “Two-to-One Problem,” in which companies and brands invest twice as much in automation and self-service solutions, even as their data indicates that the push to digital-first is failing.
How CSR Shapes Loyalty, Reputation, and Long-Term Success by Richard Kilgannon
(Inc. Magazine) Corporate social responsibility (CSR) isn’t just a nice idea; it is a critical strategic business component that all companies should explore. Nearly 80 percent of consumers surveyed say they are motivated to purchase from companies that demonstrate they want to make the world a better place.
My Comment: My annual customer experience research finds that customers enjoy doing businesses that have a social cause or give back to the communities they serve. This article is written by the president and CEO of a painting company who recognizes the power of CSR (corporate social responsibility). The four benefits of his CSR strategy are increased loyalty, hiring top talent, brand recognition, and a positive impact on the community.
Customer Retention Didn’t Get Harder. It Got Faster. by Brian Riback
(CMSWire) Retention teams are not failing because they forgot how to market. They are failing because they keep executing strategies built for a slower customer. In 2026, the environment is hostile to slow persuasion and tolerant of only one thing: relevance that arrives immediately.
My Comment: This article emphasizes the importance of speed. In my five-step process for managing customer complaints, step five is to create a sense of urgency. In other words, speed. This is what restores customer confidence. The author makes the case for improving time-to-resolution or risk losing customers to competitors.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
8 Customer Experience Failures Every Leader Should Address Now by Natalie Ruiz
(Entrepreneur) Customer experience isn’t a department. It’s a leadership decision. Every interaction a customer has with your business, from their first inquiry to how you resolve problems, signals what you value. Over time, those signals compound into trust or erosion, loyalty or churn. As companies grow, customer experience failures rarely come from neglect. More often, they come from decisions made in the name of efficiency, scale or cost control.
My Comment: We kick off this week’s Top Five roundup with an article about what NOT to do. The list of eight “CX Failures” makes for a nice checklist to confirm you’re staying away from what drives customers away.
Why Customer Service Determines the ROI of Your Marketing Spend by Shama Hyder
(MarTech) Marketing creates expectations that customer service must fulfill. When they don’t, acquisition gains turn into retention losses.
My Comment: We spend so much effort and money to acquire customers; we shouldn’t risk losing them due to customer support and CX. This article demonstrates the direct effect of customer service on marketing and explains why they must be connected. I’ve long argued that customer service and CX are marketing strategies, not departments. There are plenty of facts, stats, and ideas to help build repeat business and reduce churn.
Why Your Digital-First CX Strategy is Failing (and how to fix it) by Marie Angselius
(CustomerThink) For years, the prevailing wisdom in customer experience (CX) has been to steer customers towards digital channels. The promise was a win-win: customers would get quick, 24/7 self-service and companies would slash operational costs.
My Comment: I’m a fan of digital-first customer support, but there must always be a human backup for customers who choose to speak with a live agent or are forced to do so when they can’t resolve their issue through self-service. The author writes about the “Two-to-One Problem,” in which companies and brands invest twice as much in automation and self-service solutions, even as their data indicates that the push to digital-first is failing.
How CSR Shapes Loyalty, Reputation, and Long-Term Success by Richard Kilgannon
(Inc. Magazine) Corporate social responsibility (CSR) isn’t just a nice idea; it is a critical strategic business component that all companies should explore. Nearly 80 percent of consumers surveyed say they are motivated to purchase from companies that demonstrate they want to make the world a better place.
My Comment: My annual customer experience research finds that customers enjoy doing businesses that have a social cause or give back to the communities they serve. This article is written by the president and CEO of a painting company who recognizes the power of CSR (corporate social responsibility). The four benefits of his CSR strategy are increased loyalty, hiring top talent, brand recognition, and a positive impact on the community.
Customer Retention Didn’t Get Harder. It Got Faster. by Brian Riback
(CMSWire) Retention teams are not failing because they forgot how to market. They are failing because they keep executing strategies built for a slower customer. In 2026, the environment is hostile to slow persuasion and tolerant of only one thing: relevance that arrives immediately.
My Comment: This article emphasizes the importance of speed. In my five-step process for managing customer complaints, step five is to create a sense of urgency. In other words, speed. This is what restores customer confidence. The author makes the case for improving time-to-resolution or risk losing customers to competitors.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
February 10, 2026
The Future of CX: AI First, Not AI Only
How can you not enjoy working with a company whose name is NiCE? Seriously, I’ve had the good fortune of working with NiCE for about 10 years. It is one of the largest AI companies for customer experience, working with businesses of all sizes, from SMBs to global enterprises. Recently, I’ve been working with Michele Carlson, senior product marketing manager, on several virtual events. Our most recent one was on the
Top AI Trends CX Leaders Must Act On in 2026
. I loved the event so much that I did a follow-up interview to talk about a few of my favorite trends that would apply to most of our subscribers.
AI is shaping customer experience, yet people still love talking to live agents for customer support. As a matter of fact, my annual customer service and experience research finds that, given the choice between calling a company on the phone or using its digital options, including AI, 68% of American consumers prefer the phone. However, 47% of consumers said that even with their preference for the phone, they still want the digital option, and if it wasn’t provided, they would consider switching to a company that offered it. With that as a backdrop, here are three of my favorite trends from our conversation:
AI-First CX Becomes the Dominant Model for Customer Engagement: This means we may suggest to our customers to use an AI solution, especially for simple tasks like checking on an order, making a change of address and other easy-to-do self-service tasks, but there should always, and I’ll emphasize the word always, be a quick and effortless way to connect to a live agent. Another way of saying this is: AI First, but Not AI Only.
Agentic AI and LAMs (Language Action Models): AI is no longer just about conversation. Agentic AI can take action. For example, if I’m interacting with a chatbot about a problem, it can determine that I need a replacement and then perform the multiple time-consuming steps that humans normally do. AI updates the order, confirms shipping details, triggers warehouse fulfillment, generates necessary documents, and tracks the shipping, all without human intervention. This frees up employees to be more productive and efficient.
Experience Memory Compounds AI Value: This is your secret weapon to creating loyalty with your customers. AI allows you to know your customers better than ever. It remembers everything, tracking sales history, buying patterns, preferences, and more. Chatbots can personalize the experience, almost as if they were human. And if the customer prefers talking to a live agent, AI can assist the agent by sharing similar information to help personalize the experience. In my book, I’ll Be Back , I write about the Cheers Factor, a callback to the 1980s sitcom with the theme song’s memorable line, “You want to go where everybody knows your name.” This is what customers want: to be noticed, recognized, and appreciated. An AI-assisted personalized experience takes knowing your customer to another level. Consider this: Memory is a loyalty multiplier!
The future of customer experience isn’t AI versus humans. It’s AI working for humans. When AI handles the repetitive work, remembers customers, and knows when to step aside for a live agent, companies deliver faster service, more personalized experiences, and greater confidence that gets customers to say, “I’ll be back!
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com . Connect with Shep on LinkedIn .
February 9, 2026
Customer Experience Beyond Distinction with Scott McKain
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
Why is consistency important in providing an excellent customer experience?
What role does emotional connection play in building customer loyalty?
How should companies leverage technology to improve customer service without losing the human touch?
What are some effective ways to deliver a proactive customer experience?
Why is standing out from competitors not enough to build lasting customer relationships?
Top Takeaways:
Standing out from competitors is important. However, simply being different is not always good. Distinction is when what we do is unique, compelling, and memorable in a way that is impactful and meaningful to the customers we seek to serve.
Consistency wows customers. Amazing customer experiences are built on doing small things right, every time. When every interaction is handled with care and attention, customers learn to trust the brand.
Technology, like AI, can make your business faster and more efficient, but loyalty comes from how you make customers feel. Even with simple gestures like remembering someone’s name or checking whether the customer got everything they need, it’s the human touch that keeps people coming back.
Use AI to save money and handle repetitive tasks efficiently, giving your team more time to focus on resolving customer issues and building stronger relationships.
Every organization should be very precise about what they aren’t, just as clear as they are about what they are.
Real competitive advantage does not come from reacting to trends or to what your competitors are doing. If you are constantly in reaction mode, you are already behind. Staying ahead means anticipating your customers’ needs before they realize what they want.
Artificial Intelligence amplifies the values and habits a business already has, good or bad. If a business is committed to consistently providing excellent service, AI will help them do so even better. If a business is running on broken systems or is only focused on cutting costs, AI could make those problems worse.
Plus, Scott shares more insights from his latest book, Beyond Distinction: How Leaders Transcend the Turbulence of an AI-Transformed World . Tune in!
Quotes:
“Tasks go to technology, but emotion and customers go to human beings.”
“Being different is great as long as what makes you different is meaningful and has traction with the customers that you seek to serve and the employees you seek to attract.”
“What makes customer experience iconic is the consistency of excellence.”
“AI makes your organization more of what you already are. If you are an inefficient organization that does not care about your customers, then your AI will absolutely prove that to them.”
About:
Scott McKain is a Hall of Fame speaker, business advisor, and the founder/CEO of the Distinction Institute. He is the best-selling author of ALL Business is STILL Show Business, Iconic, Create Distinction, and his latest, Beyond Distinction.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
Why is consistency important in providing an excellent customer experience?
What role does emotional connection play in building customer loyalty?
How should companies leverage technology to improve customer service without losing the human touch?
What are some effective ways to deliver a proactive customer experience?
Why is standing out from competitors not enough to build lasting customer relationships?
Top Takeaways:
Standing out from competitors is important. However, simply being different is not always good. Distinction is when what we do is unique, compelling, and memorable in a way that is impactful and meaningful to the customers we seek to serve.
Consistency wows customers. Amazing customer experiences are built on doing small things right, every time. When every interaction is handled with care and attention, customers learn to trust the brand.
Technology, like AI, can make your business faster and more efficient, but loyalty comes from how you make customers feel. Even with simple gestures like remembering someone’s name or checking whether the customer got everything they need, it’s the human touch that keeps people coming back.
Use AI to save money and handle repetitive tasks efficiently, giving your team more time to focus on resolving customer issues and building stronger relationships.
Every organization should be very precise about what they aren’t, just as clear as they are about what they are.
Real competitive advantage does not come from reacting to trends or to what your competitors are doing. If you are constantly in reaction mode, you are already behind. Staying ahead means anticipating your customers’ needs before they realize what they want.
Artificial Intelligence amplifies the values and habits a business already has, good or bad. If a business is committed to consistently providing excellent service, AI will help them do so even better. If a business is running on broken systems or is only focused on cutting costs, AI could make those problems worse.
Plus, Scott shares more insights from his latest book, Beyond Distinction: How Leaders Transcend the Turbulence of an AI-Transformed World . Tune in!
Quotes:
“Tasks go to technology, but emotion and customers go to human beings.”
“Being different is great as long as what makes you different is meaningful and has traction with the customers that you seek to serve and the employees you seek to attract.”
“What makes customer experience iconic is the consistency of excellence.”
“AI makes your organization more of what you already are. If you are an inefficient organization that does not care about your customers, then your AI will absolutely prove that to them.”
About:
Scott McKain is a Hall of Fame speaker, business advisor, and the founder/CEO of the Distinction Institute. He is the best-selling author of ALL Business is STILL Show Business, Iconic, Create Distinction, and his latest, Beyond Distinction.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
Top 5 Customer Service & CX Articles for Week of February 9, 2026
Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.
There’s No Point in Great CX if It Doesn’t Create Revenue by Claire Cunningham
(CX Network) Customer experience is increasingly establishing itself as a priority across most organizations. Or at least organizations are adding a CX function in name. Executives talk about customer centricity. Teams invest in new CX tools. Dashboards track satisfaction scores in real time. We’re seeing the actions and the words of bigger and more prominent CX priorities.
My Comment: We kick off this week’s Top Five roundup with an article about why CX is important. Of course, it is, and there’s plenty of data to prove it. The title of this article is intriguing, and as you read through it, you’ll find the main point is making customer satisfaction a growth engine. In other words, customer experience isn’t about creating happy customers. It’s about creating happy customers who come back and spend more.
When Customer Listening Becomes a Shield, Not a Strategy by Sean Albertson
(CMSWire) Most organizations can prove they listened. Far fewer can show what changed when trade-offs got real.
My Comment: I’ve written many times in the past that customer satisfaction surveys or VOC (Voice of the Customer) programs mean nothing if you don’t take action on the information you receive. The author makes an important statement at the top of the article: “Most organizations can prove they listened. Far fewer can show what changed…”
How Discounting Hurts Long-Term Loyalty and Profits by Elery Pfeffer
(Fast Company) What’s often missing from the conversation is the role of experience-led value. Loyalty isn’t built through price alone—it’s built through moments that make a customer feel recognized, appreciated, and confident they made the right choice. When brands compete only on discounts, they sacrifice those moments in favor of short-term volume.
My Comment: When customers keep coming back to you because you offer low – or even the lowest – prices, realize this: Your customers aren’t loyal to you. They are loyal to your price. That means you are vulnerable to the next big sale your competition offers. (In my annual customer experience research , there is plenty of proof that CX trumps price for almost six out of ten customers.) This excellent article makes that point and more. If you want loyalty, you must think beyond that transaction that might be influenced by price.
How to Improve Call Center Customer Service by Amanda Downie and Molly Hayes
(IBM) Today, consumer expectations are at an all-time high and organizations across the globe are transforming their business processes with automation and artificial intelligence. In this environment, thoughtful attention toward the call center customer experience is essential for continued survival and growth.
My Comment: IBM has published an excellent article for contact center leaders. The opportunity customer service agents have to retain and grow customers for their company is incredible, but too often these people are seen as nothing more than complaint and issue resolvers. An interesting finding quoted in the article from Zendesk research is that 83% of consumers believe that the experience should be far better than it is today.
Brands up Loyalty Spend as ROI, Data and Retention Soar by Decision Marketing
(Decision Marketing) Loyalty programmes are now the driving force behind most marketing strategies, with brand owners ploughing more than half of their total budgets (51.5%) into loyalty and CRM, driven by rising returns, stronger customer engagement, and a growing focus on long-term retention over short-term customer acquisition.
My Comment: We wrap up this week’s roundup with an article filled with findings from Antavo’s Global Customer Loyalty Report 2026 , which surveyed 3,000 marketers and 10,000 consumers to understand consumer loyalty. This is an invaluable resource for anyone currently running or considering loyalty programs.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
There’s No Point in Great CX if It Doesn’t Create Revenue by Claire Cunningham
(CX Network) Customer experience is increasingly establishing itself as a priority across most organizations. Or at least organizations are adding a CX function in name. Executives talk about customer centricity. Teams invest in new CX tools. Dashboards track satisfaction scores in real time. We’re seeing the actions and the words of bigger and more prominent CX priorities.
My Comment: We kick off this week’s Top Five roundup with an article about why CX is important. Of course, it is, and there’s plenty of data to prove it. The title of this article is intriguing, and as you read through it, you’ll find the main point is making customer satisfaction a growth engine. In other words, customer experience isn’t about creating happy customers. It’s about creating happy customers who come back and spend more.
When Customer Listening Becomes a Shield, Not a Strategy by Sean Albertson
(CMSWire) Most organizations can prove they listened. Far fewer can show what changed when trade-offs got real.
My Comment: I’ve written many times in the past that customer satisfaction surveys or VOC (Voice of the Customer) programs mean nothing if you don’t take action on the information you receive. The author makes an important statement at the top of the article: “Most organizations can prove they listened. Far fewer can show what changed…”
How Discounting Hurts Long-Term Loyalty and Profits by Elery Pfeffer
(Fast Company) What’s often missing from the conversation is the role of experience-led value. Loyalty isn’t built through price alone—it’s built through moments that make a customer feel recognized, appreciated, and confident they made the right choice. When brands compete only on discounts, they sacrifice those moments in favor of short-term volume.
My Comment: When customers keep coming back to you because you offer low – or even the lowest – prices, realize this: Your customers aren’t loyal to you. They are loyal to your price. That means you are vulnerable to the next big sale your competition offers. (In my annual customer experience research , there is plenty of proof that CX trumps price for almost six out of ten customers.) This excellent article makes that point and more. If you want loyalty, you must think beyond that transaction that might be influenced by price.
How to Improve Call Center Customer Service by Amanda Downie and Molly Hayes
(IBM) Today, consumer expectations are at an all-time high and organizations across the globe are transforming their business processes with automation and artificial intelligence. In this environment, thoughtful attention toward the call center customer experience is essential for continued survival and growth.
My Comment: IBM has published an excellent article for contact center leaders. The opportunity customer service agents have to retain and grow customers for their company is incredible, but too often these people are seen as nothing more than complaint and issue resolvers. An interesting finding quoted in the article from Zendesk research is that 83% of consumers believe that the experience should be far better than it is today.
Brands up Loyalty Spend as ROI, Data and Retention Soar by Decision Marketing
(Decision Marketing) Loyalty programmes are now the driving force behind most marketing strategies, with brand owners ploughing more than half of their total budgets (51.5%) into loyalty and CRM, driven by rising returns, stronger customer engagement, and a growing focus on long-term retention over short-term customer acquisition.
My Comment: We wrap up this week’s roundup with an article filled with findings from Antavo’s Global Customer Loyalty Report 2026 , which surveyed 3,000 marketers and 10,000 consumers to understand consumer loyalty. This is an invaluable resource for anyone currently running or considering loyalty programs.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
February 3, 2026
The Difference Between a Proactive and Reactive Customer Service and CX Strategy
The definition of a proactive customer experience is simple. The company reaches out to the customer before they call about a problem. Sometimes the customer doesn’t even know there is a problem. For example, an Internet provider may experience an outage and send text messages to its customers with ongoing updates. That shows the company is watching out for the customer, and while customers may not love that there is a problem, they love the information and have confidence that the company is doing something about it. I recently interviewed my friend and fellow CX expert Scott McKain for an episode of Amazing Business Radio to discuss his new book, Beyond Distinction: How Leaders Transcend the Turbulence of an AI-Transformed World . He had a different take on proactive customer service and experience.
McKain’s version was to anticipate what a customer might need and act on it before they ask. When it comes to service, that may fall under the general definition of proactive service, but when it comes to the overall experience, it’s much bigger – and more exciting. McKain also includes providing services and products that they don’t yet realize they want. He quoted Henry Ford, who said, “If I asked my customers what they wanted, they would say, ‘faster horses.’”
Both versions of proactive service are important. The overall point is that we are always looking ahead of what our customers want and expect. We anticipate what they need, and we deliver. That results in a higher level of trust and confidence from our customers.
After McKain so eloquently described his nuance on proactive service, he took it to an even higher level, and that had to do with the flaw in a reactive service experience.
Being reactive is the opposite of proactive. Instead of anticipating what your customers want, you’re reacting to their calls, questions, issues, and complaints. And it’s even more than that. If you notice that your market or customers’ expectations are changing, you might react to keep up. Or, if you notice competitors are doing something you’re not, your reaction may be to copy or create something to catch up. Reacting is a losing strategy. McKain sums it up perfectly: “If you are constantly in reaction mode, it means you’ve already lost … you’re already behind.”
It’s impossible to completely eliminate being reactive. Sometimes you don’t know about a customer’s problem unless they tell you. You may not notice a change in the market immediately, but ideally, in a short time, you spot the issue or trend. That response is reactive, but the effort to uncover it is proactive.
So, the choice is simple. You can wait for customers to tell you what’s broken, what’s missing, or what they expect next, or you can design a process or strategy that gets you there first. A proactive customer experience builds confidence. Reactive strategies don’t.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com . Connect with Shep on LinkedIn .
February 2, 2026
Thriving in the Transformation Economy with Joseph Pine
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
What is the transformation economy?
What is the difference between selling a product and creating a transformative customer experience?
How can businesses guide customers to achieve their personal or professional aspirations?
What are the benefits of customizing experiences to meet individual customer needs?
What elements contribute to a robust customer experience?
Top Takeaways:
The transformation economy is about how companies can help customers change. It is about how your business can help them achieve their aspirations.
Businesses create more value when they focus on selling the end rather than the means. Go beyond selling products and services to understanding why customers buy and use that knowledge to help them reach their goals and achieve their aspirations.
Transformation is not a one-size-fits-all. It must begin with truly understanding where the customer is starting (from) and where your customers aspire to end up (to). Carefully identify the customer’s current situation, needs, and aspirations to tailor experiences that produce meaningful outcomes for them.
Sell transformation, not just products. For example, people don’t buy a treadmill because they want the equipment. They want to be healthier, have more stamina, or feel better about themselves. Whether you’re selling a physical product, a service, or something else, shift your mindset to the customer’s desired result.
In both B2B and B2C, businesses should become trusted partners, not just vendors. That means understanding clients’ deeper goals and helping them achieve success, even if it occasionally means recommending solutions outside what you sell. The focus is on the customer’s outcome, not just the transaction.
In the transformation economy, companies should charge for what customers value most: outcomes. Companies are moving away from pricing based on time, materials, or products. It is focused on results.
Transformative change for customers doesn’t come from a single transaction. It spans the entire journey, including the preparation before the event, reflection afterwards, and ongoing integration into daily life.
Plus, Shep and Joe share insights from The Transformation Economy and discuss companies that are putting customer transformations first. Tune in!
Quotes:
“Transformations are built on top of experiences. We change through the experiences that we have. “
“Get down to the core of what your customers are trying to do (achieve) and how your current offering is a means to that end. If you sell the end rather than the means, you will shift from a supplier to a true partner in their ongoing success.”
“Any experience stager can turn their experiences into transformative ones by preparation beforehand, reflection afterward, and integration on an ongoing basis. Preparation primes the experience, reflection increases its value, and integration helps make lasting change happen.”
About:
Joseph Pine is a bestselling author, speaker, and cofounder of Strategic Horizons LLP, celebrated for guiding Fortune 500 companies and innovative startups alike. He is the author of The Experience Economy, Mass Customization, and Infinite Possibility.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
What is the transformation economy?
What is the difference between selling a product and creating a transformative customer experience?
How can businesses guide customers to achieve their personal or professional aspirations?
What are the benefits of customizing experiences to meet individual customer needs?
What elements contribute to a robust customer experience?
Top Takeaways:
The transformation economy is about how companies can help customers change. It is about how your business can help them achieve their aspirations.
Businesses create more value when they focus on selling the end rather than the means. Go beyond selling products and services to understanding why customers buy and use that knowledge to help them reach their goals and achieve their aspirations.
Transformation is not a one-size-fits-all. It must begin with truly understanding where the customer is starting (from) and where your customers aspire to end up (to). Carefully identify the customer’s current situation, needs, and aspirations to tailor experiences that produce meaningful outcomes for them.
Sell transformation, not just products. For example, people don’t buy a treadmill because they want the equipment. They want to be healthier, have more stamina, or feel better about themselves. Whether you’re selling a physical product, a service, or something else, shift your mindset to the customer’s desired result.
In both B2B and B2C, businesses should become trusted partners, not just vendors. That means understanding clients’ deeper goals and helping them achieve success, even if it occasionally means recommending solutions outside what you sell. The focus is on the customer’s outcome, not just the transaction.
In the transformation economy, companies should charge for what customers value most: outcomes. Companies are moving away from pricing based on time, materials, or products. It is focused on results.
Transformative change for customers doesn’t come from a single transaction. It spans the entire journey, including the preparation before the event, reflection afterwards, and ongoing integration into daily life.
Plus, Shep and Joe share insights from The Transformation Economy and discuss companies that are putting customer transformations first. Tune in!
Quotes:
“Transformations are built on top of experiences. We change through the experiences that we have. “
“Get down to the core of what your customers are trying to do (achieve) and how your current offering is a means to that end. If you sell the end rather than the means, you will shift from a supplier to a true partner in their ongoing success.”
“Any experience stager can turn their experiences into transformative ones by preparation beforehand, reflection afterward, and integration on an ongoing basis. Preparation primes the experience, reflection increases its value, and integration helps make lasting change happen.”
About:
Joseph Pine is a bestselling author, speaker, and cofounder of Strategic Horizons LLP, celebrated for guiding Fortune 500 companies and innovative startups alike. He is the author of The Experience Economy, Mass Customization, and Infinite Possibility.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
February 1, 2026
Top 5 Customer Service & CX Articles for Week of February 2, 2026
Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.
When Tipping Becomes a Customer Experience Problem by Mark Bender, Marco Bertini, Oded Koenigsberg and Rob Waiser
(Harvard Business Publishing) Surveys show that a significant portion of Americans feel tipping culture is out of control, with many annoyed by preset tip screens and the pressure to tip in unexpected situations.
My Comment: We kick off this week’s Top Five roundup with a Harvard Business Review article on tipping. I’ve written about tipping and tipflation before. The article mentions a Bankrate survey that found 41% of Americans believe tipping is “out of control.” It makes sense to tip your server, taxi (or Uber or Lyft) driver, the pizza delivery person, and the hotel employee who carries your luggage to your room. But tipping has been seeping into other areas that surprise customers, such as the self-checkout kiosk. The authors of the article write, “If the trend continues unchecked, professionals… such as attorneys, consultants, and hedge fund managers might soon argue that gratuities belong in their line of work, too.”
Customers Are More Likely to Forgive High Prices over a Bad Customer Experience: Study by Jeena Sharma
(Retail Brew) Shoppers may forgive high prices, but poor customer experience…is far less negotiable. Havas CX’s X Index Report suggests consumers are now more likely to walk away over how a brand makes them feel than how much it charges.
My Comment: This very short article emphasizes that customers will “abandon” a brand after one bad experience. On the other hand, more customers are willing to pay more for service for customer service. My annual CX and customer service research confirms that 59% of customers will pay more for better service. This article has some good information about what typical consumers are willing to forgive, pay, and how much they enjoy a personalized experience.
Customer Service under Pressure as Automation, Cost Controls Shape Experience: Report by Teddy Cambosa
(MARKETECH APAC) Customer service continues to be a primary point of contact for consumers seeking help from businesses, playing a central role in shaping customer perceptions and loyalty, a new report from Accenture Song notes. Often described as a “first responder” in customer experience, service interactions can influence whether customers remain loyal or disengage from a brand.
My Comment: The article makes many excellent points, supported by Accenture’s research. One worth paying very close attention to is about automation and customer service. When done well, it works, but as this article points out, customers are noticing that a company’s goal of self-service solutions is preventing them from speaking with a live agent who can help. Furthermore, nearly half of CX executives cited cost control as a top concern, and 64% said they are making trade-offs between cost savings and customer satisfaction.
10 Signs Your CX Strategy Is Broken and How to Fix It by Annette Franz
(MarTech) CX doesn’t stall because teams lack insight, but because the questions they keep asking protect the system from real change.
My Comment: This excellent article includes ten questions that many companies ask themselves about CX. However, even though they end with a question mark, they may not actually be a question, but an excuse. For example, “Are customers just more demanding?” The underlying meaning of that question may be an internal message (excuse) that says, “The problem isn’t us. It’s the customer.”
The 7 Pillars of Advisor Morale by Megan Jones
(Call Centre Helper) Megan Jones – spoke to employee engagement experts Alex McConville, Danny Wareham, Emma Wilson, Maria McCann, Matt Riley, and Shep Hyken to find out what the 7 pillars are and why you need them – all to help you easily pinpoint where there’s room for improvement across your contact centre.
My Comment: Our friends at Callcentre Helper have released another excellent article focused on seven ways to help keep agent morale high. The author interviewed seven CX experts (including me) about what CX leaders can do to create a positive, fulfilling experience for their contact center employees.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
When Tipping Becomes a Customer Experience Problem by Mark Bender, Marco Bertini, Oded Koenigsberg and Rob Waiser
(Harvard Business Publishing) Surveys show that a significant portion of Americans feel tipping culture is out of control, with many annoyed by preset tip screens and the pressure to tip in unexpected situations.
My Comment: We kick off this week’s Top Five roundup with a Harvard Business Review article on tipping. I’ve written about tipping and tipflation before. The article mentions a Bankrate survey that found 41% of Americans believe tipping is “out of control.” It makes sense to tip your server, taxi (or Uber or Lyft) driver, the pizza delivery person, and the hotel employee who carries your luggage to your room. But tipping has been seeping into other areas that surprise customers, such as the self-checkout kiosk. The authors of the article write, “If the trend continues unchecked, professionals… such as attorneys, consultants, and hedge fund managers might soon argue that gratuities belong in their line of work, too.”
Customers Are More Likely to Forgive High Prices over a Bad Customer Experience: Study by Jeena Sharma
(Retail Brew) Shoppers may forgive high prices, but poor customer experience…is far less negotiable. Havas CX’s X Index Report suggests consumers are now more likely to walk away over how a brand makes them feel than how much it charges.
My Comment: This very short article emphasizes that customers will “abandon” a brand after one bad experience. On the other hand, more customers are willing to pay more for service for customer service. My annual CX and customer service research confirms that 59% of customers will pay more for better service. This article has some good information about what typical consumers are willing to forgive, pay, and how much they enjoy a personalized experience.
Customer Service under Pressure as Automation, Cost Controls Shape Experience: Report by Teddy Cambosa
(MARKETECH APAC) Customer service continues to be a primary point of contact for consumers seeking help from businesses, playing a central role in shaping customer perceptions and loyalty, a new report from Accenture Song notes. Often described as a “first responder” in customer experience, service interactions can influence whether customers remain loyal or disengage from a brand.
My Comment: The article makes many excellent points, supported by Accenture’s research. One worth paying very close attention to is about automation and customer service. When done well, it works, but as this article points out, customers are noticing that a company’s goal of self-service solutions is preventing them from speaking with a live agent who can help. Furthermore, nearly half of CX executives cited cost control as a top concern, and 64% said they are making trade-offs between cost savings and customer satisfaction.
10 Signs Your CX Strategy Is Broken and How to Fix It by Annette Franz
(MarTech) CX doesn’t stall because teams lack insight, but because the questions they keep asking protect the system from real change.
My Comment: This excellent article includes ten questions that many companies ask themselves about CX. However, even though they end with a question mark, they may not actually be a question, but an excuse. For example, “Are customers just more demanding?” The underlying meaning of that question may be an internal message (excuse) that says, “The problem isn’t us. It’s the customer.”
The 7 Pillars of Advisor Morale by Megan Jones
(Call Centre Helper) Megan Jones – spoke to employee engagement experts Alex McConville, Danny Wareham, Emma Wilson, Maria McCann, Matt Riley, and Shep Hyken to find out what the 7 pillars are and why you need them – all to help you easily pinpoint where there’s room for improvement across your contact centre.
My Comment: Our friends at Callcentre Helper have released another excellent article focused on seven ways to help keep agent morale high. The author interviewed seven CX experts (including me) about what CX leaders can do to create a positive, fulfilling experience for their contact center employees.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
January 27, 2026
The Customer Service Department Isn’t Broken – The System Is
I’ve been monitoring my customer service experiences with the brands I do business with a little more closely than usual. And I’ve made numerous calls to airlines, mobile phone carriers, electronics companies, and more. I’ve found that people are typically friendly and do their best to support me. To clear my conscience, I admit that my recent call to my cable provider was tense due to my frustration with a faulty router, but that tenuous conversation was my fault, not theirs. I was obviously upset with the product, but my rep remained calm and did everything in her power to resolve the issue. She gets an A for effort, attitude, and knowledge. It’s not the people. It’s the system.
My point is that I hear so many people complaining about customer service, but in many cases, it’s not the people. It’s the system. Some of the reasons customers complain about customer service or experience due to broken or poorly created systems are:
Hard-to-find contact information for customer support – While most websites provide information about customer support, sometimes it’s not clearly visible. When a customer wants to contact you, don’t add to their frustration by making it difficult.
Inability to connect with someone from customer support – Some companies are still betting that a 100% AI-fueled self-service option can replace live agents. In almost every case, they are wrong!
Self-service options are not provided – Just as some companies make the error of going “all in” on digital self-service support, some companies don’t provide any self-service options. There is a percentage of customers who demand the option, or they will choose to do business elsewhere.
Self-service options are provided, but they don’t answer the question or offer a solution – While this alone can be frustrating, imagine if the self-service is not working and the company makes it difficult or impossible to connect to a live person. This is adding fuel to the fire.
Long wait or hold times without the option of a call-back – In this day and age, it is very inexpensive to add a feature that informs the customer how long their hold time will be, with an option for a return call when it’s their turn.
Nobody will return my message – If one option for customer support is to leave a message, the expectation is that the company will respond to the message. And, I’ll add that it should be done in a timely manner.
Poorly trained reps – One might argue that poorly trained reps are a people problem, not a system problem, but I disagree. A lack of training or poor hires is a function of how the company operates, not the fault of customer service agents trying to do their best.
Here’s your assignment:
Sit down with your team. Then use this list to ignite a brainstorming session to discover if your organization is guilty of these or other “system failures.” This first step is about awareness. From there, take action and fix what’s broken. In summary, most bad experiences are caused by internal friction and broken or poorly designed systems, not front-line behavior.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com . Connect with Shep on LinkedIn .
