Your business model is under attack. And it’s not by your competitors. It’s under attack from your customers. Three years ago, Forrester identified a major shift in the market, ushering in the age of the customer. Power has shifted away from companies and towards digitally savvy, technology-empowered customers. They now decide winners and losers: Our Empowered Customer Segmentation shows that more than a third all US online adults want new and engaging digital experiences. They will switch companies to find these experiences. In this environment, being customer-obsessed can be your only competitive strategy.
In Forrester’s 2017 Prediction Reports, we are tracking firms’ progress on their customer-obsessed journeys. In our annual collection of predictions, we look at business strategy, leadership, customer experience, and technology dynamics to examine progress and predict the key events, changes, and trends that will occur in 2017.
Here are three key findings from our 16 predictions reports:
The next wave of Customer Experience will have a profound impact on firms’ P&L: The shift to a customer-led market represents an immediate and prolonged threat to company survival. Our research shows a clear correlation between the quality of customer experiences and revenue growth; it also affirms that emotion is a core driver of customer loyalty and spending. The next wave of CX will connect these dots, blending analytics, technology, and design to evoke emotions to drive affinity and directly impact revenue.
Happy CX Day! As part of our CX Day celebrations, which include a very special episode of CX Cast, and a comprehensive CX reading list that doubles as a holiday gift buying guide for the CX pro in your life, we are launching a new report: Why CX? Why Now?
In collaboration with my colleague, Sam Stern, we looked at why now is the time for CX pros to convince executives and colleagues at their organizations to double down on improving the customer experience. To make it a lot easier for you to message this across in your firm, we included an infographic that:
Conveys without a doubt how urgent it is to invest in CX because your customers, competitors and employees are changing!
Gives you six tangible business benefits from improving customer experience that will help you make the case for why CX drives business results. For example, Southwest Airlines, a consistent CX leader, has been profitable for 43 consecutive years, in an industry better known for red ink and bankruptcies.
Tells you which challenges most companies (and probably yours) face on the road to better CX. One example: More than half of CX pros said that their organization's culture impedes their success.
Shows the path to improving CX, starting from a CX vision, continuing with building CX competencies and strengthening your business technology foundation.
Some of you may have seen my earlier blog post on why you should attend CX Marketing Singapore 2016! Our annual Forrester Singapore event returns in less than two weeks, and I'm excited to hear from our own Forrester experts as well as esteemed industry speakers on how customer experience is and will continue to be the key differentiator for organizations to succeed in the age of the customer.
I hope to see you at the Marina Mandarin on August 25 — register here if you haven't already! In the meantime, here's a sneak peek of what to expect at the Forum. I had the opportunity to speak with David Peller, Director, Strategic Partnerships, Asia Pacific at Booking.com, who gave us the inside scoop on how Booking.com has organized itself to be customer-obsessed, which it believes gives it an edge today. Here's what he had to say:
How has the age of the customer affected the travel industry? How have you seen your customer needs evolve?
If you think back to the time when travel was essentially an offline shopping experience, the customer used to spend hours deliberating with imperfect information, guided by a travel agent. Today, technology democratizes the travel experience — and you don't just have to take the view of one person for granted. On Booking.com, we have more than 100 million verified reviews of properties, places and activities, which provides engaging content for every potential traveler to explore.
Can you tell us briefly about Booking.com's digital transformation program and the approach that you've taken?
Within 24 hours of its launch, Pokémon Go broke app download records and user numbers began multiplying by the minute. It wasn’t long before mysterious names like “Jigglypuff” and “Squirtle” peppered daily conversation, stampedes of mobile-obsessed gamers became commonplace, and augmented reality approached a tipping point.
As all organizations operating in Singapore and in Southeast Asia understand, CX is fast becoming the only competitive differentiator for their business. The lines between brand, marketing, and CX disciplines are blurring as customers gain access to companies, services, and products on their own terms. How can you thrive in this dynamic environment? Start by effectively coordinating between brand, CX, and marketing teams.
We’ve filled our agenda with senior CX and marketing professionals from leading organizations across Singapore and beyond. Key topics they’ll cover include:
Driving business results, competitive advantage, and growth by delivering the right customer experience.
Identifying the key practices and behaviors that fuel CX innovation.
Building and maintaining a brand in a digital world.
Instilling an understanding of customer emotions into design experiences and branding strategy.
Systematically improving CX through effective measurement.
Leading through change requires that right mix of imagination, inspiration, and gritty execution. And we are in a world of change. Empowered customers and the constant and rapid wave of digital innovation are changing market fundamentals. Leaders are now challenged to respond.
I had the pleasure of hosting a discussion with James McQuivey, Carl Doty, and Sam Stern to talk leadership in the age of the customer. Our conversation covered a range of topics from having the wisdom to see the market for what it is versus how we would like the market to act to putting in motion strategic and operational change that is necessary, new, and risky. Here are the five takeaways:
The customer is in motion. Customers rapidly adopt — and rapidly abandon — technologies, services, and brands. That is wonderful and scary thing. It creates new possibilities. But it also redefines the norms for churn where a decision to shift spend is made by a single experience — good or bad. This dynamic can represent a major threat to growth if companies need to absorb 10%+ churn.
But saying CX is a priority is easy, making it actionable speaks volumes. Frankly, if your firm isn’t taking action to relentlessly pursue CX improvement, to become customer obsessed, you’re making a mistake.
Those actions give CIOs and their teams an incredible opportunity. Technology empowers your customers, members, clients, and buyers today. And your business leaders need you to expand beyond using technology to support or transform internal operations - what we call the IT agenda. Today, business leaders need your help to compete for customer loyalty. Today, business leaders need you and your teams to help them apply technology, systems,and process to win, serve, and retain customers- the business technology (BT) agenda.
Executing on the BT agenda gives you and your team the opportunity to make the biggest, most visible contribution to your firm I can think of - top line growth. Keep three things in mind as you strive to take advantage of this opportunity:
This Forum will help you identify brand new software opportunities and run with them. It will hit on the must-have competencies that will empower application development and delivery leaders to execute on their company’s engagement strategies. This includes accelerating development processes, creating digital experiences, reaching mobile customers, and exploiting analytics and big data. Forrester analysts will deliver forward-thinking content while industry specialists – from companies such as McDonald’s, Mastercard, and GE Capital - will provide insight into some real and revolutionary new business approaches that are relevant to you right now.
I come to Forrester after working in the Solution Marketing and Corporate Marketing groups at a large customer service software provider. That role put me in touch with contact center technology buyers and the overburdened folks responsible for actually making great customer service happen every day. I saw close up the impact of the age of the customer on the thinking, processes, behavior, and technology choices of contact center professionals around the world. They are facing a world in which consumers are much less willing to settle for mediocre and impersonal experiences when dealing with customer service organizations. As consumers we all want effortless service delivered via whatever channel is most convenient at the moment, and we want companies to know just the right amount of information about us, but not too much, at the moment of the interaction.
That is a very tough nut to crack for contact center managers, supervisors, and agents. My research coverage will primarily focus on two areas that can help contact center pros begin to address these issues:
The tide is turning on privacy. Since the earliest days of the World Wide Web, there has been an increasing sense that the Internet would effectively kill privacy – and in the wake of the NSA PRISM program revelations, that sentiment was stronger than ever. However, by using our Forrester’s Technographics 360 methodology, which blends multiple qualitative and quantitative data sources, we found that attitudes on privacy are evolving: Consumers are beginning to shift from a state of apathy and resignation to caution and empowerment.
In our recently published report, we integrate Forrester's Consumer Technographics® survey data, ConsumerVoices Market Research Online Community qualitative insight, and social listening data to provide a holistic view of the changes in consumer perceptions and expectations of data privacy. In the past year, individuals have 1) become much more aware about the ways in which organizations collect, use, and share personal data and 2) have started to change their online behavior in response: