Executives don't decide how customer-centric their companies are—their customers are the ultimate arbiters. Digital disruptors—a term coined by Forrester describing companies that leverage digital platforms to take advantage of customers' heightened expectations and deliver a more compelling product and service experience at a lower cost—are threatening traditional business models. I will be exploring this challenge and discussing how to establish the right digital agenda on October 18-19 at the upcoming Forrester conference Developing Digital Disruption: A Forum For Application Development & Delivery Professionals.
Our research shows that a good experience impacts customers' behavior in three ways: 1) they are more willing to consider another purchase; 2) they are less likely to switch their business to a competitor; and 3) they are more likely to make a favorable recommendation. But how does that affect a company's bottom line? We estimate that the revenue impact from a 10-percentage-point improvement in a larger service company's performance, as measured by Forrester's Customer Experience Index score, could exceed $1 billion.