Outside-In vs. Inside-Out Thinking

In the world of customer experience, what's the difference between outside-in and inside-out?

Inside-out thinking means your focus is on processes, systems, tools, and products that are designed and implemented based on internal thinking and intuition. The customer's needs, jobs, and perspectives do not play a part in this type of thinking; they aren't taken into consideration. You make decisions because you think it's what's best for the business - not for customers. Or you think you know what's best for customers.

On the other hand, outside-in thinking means that you look at your business from the customer's perspective and subsequently design processes, tools, and products and make decisions based on what's best for the customer and what meets the customer's needs. You make decisions because you know it's what's best for your customers. Why? Because you listen to them, and you understand them and the jobs they are trying to do.

It might be inside-out thinking when there's a conscious decision to make process, policy, people, systems, or other changes that:

Don't improve the customer experience at the same time

Are about maximizing shareholder returns, not about benefits for the customer

Improve internal efficiencies but to the detriment of customer interactions

Are cost-cutting measures that also negatively impact the customer experience

Might be the wrong process, policy, people, or systems to change

By contrast, outside-in thinking flips each of those points on its head and looks like this. There's a conscious decision to make process, policy, people, systems, or other changes that:

Improve the customer experience at the same time

Are about maximizing benefits for the customer

Improve internal efficiencies known to be painpoints when executing customer interactions

Are cost-cutting measures that significantly improve the customer experience

Are the right process, policy, people, or systems because you've listened to customer feedback and know how customers are affected

It's clear that outside-in thinking is the way to go. It leads to a number of things, none of which you'll get by making decisions that are not based on what's best for your customers...

reduced complaints

increased satisfaction

increased referrals

increased repeat purchases

improved ease of doing business

fewer lost customers

These then translate to reduced costs and increased revenue for the business.

How can we ensure that we're operating in an outside-in manner? Here are some tips.

Understand customers and what they are trying to do

Use that understanding to develop products for the customer, products that solve their problems and help them do what they are trying to do

Listen to customers at all key touchpoints

Close the loop with customers on their feedback

Act on what you hear

Share the feedback and ensure it's used throughout the organization to make decisions and to design the best experience for your customers

Do right by the customer; ask "Is this decision what's best for the customer?"

Reduce customer effort rather than making the experience convoluted and confusing

Save a seat in the room (a la Jeff Bezos' empty chair ) for the customer/customer's voice

Map customer journeys and ensure all employees - frontline and back office - have a clear line of sight to how they impact the customer experience

Talk about customers and what they are saying

The customer and his voice need to be incorporated into all decisions, design, and development. Weave the customer throughout your organization's DNA and watch what happens.

When you’re trying to make an important decision, and you’re sort of divided on the issue, ask yourself: If the customer were here, what would she say? -Dharmesh Shah, CTO of Hubspot