Forrester believes that we have entered the age of the customer — an age in which customer obsession matters more than any other strategic imperative, requiring firms to focus their strategy, energy, and budget on processes that enhance knowledge of, and engagement with, customers.
It sounds straightforward, right? Which of us doesn’t wish to become more customer-centric? Yet we see few executive teams that treat customer understanding and intelligence as a strategic imperative. Don’t believe me? Look at the agenda or the minutes from your last several executive team meetings or board meetings. How much time was devoted to understanding customers better or to leveraging that customer knowledge in new ways to drive business success?
Our research shows that fewer than fifteen percent of firms operate at a strategic level of Customer Intelligence. These are the firms that have turned customer knowledge into a corporate asset. The vast majority of them drive improvements in customer acquisition, retention, satisfaction, revenue, profitability, and customer value. And they apply CI broadly within the business. Ninety-five percent of strategic intelligence firms use CI to drive corporate strategy, versus 30% of those we categorize as functionally intelligent. And 87% of strategic intelligence firms use CI to drive business operations, versus 19% of those at the functional intelligence level.
But before you switch off and tell me this is someone else’s job, be aware of the role of executive management. Strategically intelligent firms are far more likely to have a senior-level sponsor or champion: 46% of them strongly agree that their company has a C-level evangelist or champion for Customer Intelligence, versus 20% of marketing intelligence firms and 7% of functional intelligence firms.