Forrester’s CX Sydney Forum 2017: Deliver Exceptional Digital Customer Experiences…. Or Else!

Michael Barnes

We’ve been busy finalizing the agenda and speakers for the forthcoming CX Forum in Sydney on May 9th. That’s only 8 weeks away!

Our focus this year is on exploring the current and emerging best practices for the design and delivery of exceptional customer experiences in digital channels. Or to put it more simply, we’re going way beyond the why and what to dig deeper into how.

CX and Digital Marketing professionals need to accelerate the pace of change, so for 2017 we’re deep-diving into four key themes:

The future of digital CX. How can you blend new technologies like bots, artificial intelligence, digital assistants, etc. into your existing digital CX strategies? How do these new tools change customer behavior and expectations? And how will the practice of CX be altered as a result?

CX design and delivery. What are the best practices for creating innovative, distinctive customer journeys that cross functions like sales, marketing, and customer service? How can you truly embrace CX as a team sport?

Technology stack and strategy. How can CX and IT collaborate to tackle new thinking about CX technology strategy and management? How can these groups work together to drive the digital transformation of their entire organizations?

Creating and nurturing a CX-driven culture. How can you deliver sustainable, remarkable experiences? What does it really mean to instill a customer-obsessed culture and what are the hallmarks of a CX-driven organization?

Read more

Make Omnichannel A Cornerstone Of Your Digital Transformation – The Telco Angle

Dan Bieler

Source: Forrester, "Make Omnichannel A Cornerstone Of Your Telecom Digital Transformation"

Poor customer experiences remain the Achilles’ heel of telcos’ digital transformation efforts. We live in the age of the customer, and today’s telco customer has expectations that far exceed the traditional standard of telco customer service. A random search on Trustpilot for customer satisfaction with telcos in various countries shows widespread dissatisfaction.

Offering customers seamless omnichannel experiences is critical for telcos’ digital transformation efforts. Today, customers expect to use a variety of digital touchpoints. This omnichannel approach affects telcos’ customer engagement activities at every stage of the customer life cycle, yet many telcos are still struggling to meet their customers’ rising expectations for coherent end-to-end customer engagement. This matters because omnichannel:

  • Is central to telcos’ customer experience initiatives. Customers do not care about channels. They want to have great experiences irrespective of how they engage with telcos.
  • Is more of a cultural transformation than a technology project. Omnichannel solutions require a telco to think about the customer journey from the perspective of the customer. This is a radical break with the past.
  • Opens opportunities for telcos to act as third-party service brokers. Omnichannel will empower telcos to act as service brokers for third parties if they can align their big data, content, and knowledge management strategies.
Read more

The Future of Retail Will Blow Your Mind

Martin Gill

The Future of Retail Will Blow Your Mind. A bold claim? You bet.

 

The retail industry is facing a tectonic shift. Empowered customers are challenging age-old truths every day. New distribution channels, e-commerce impacting physical stores, new payment systems and innovative technical solutions disrupt old operating models. Mobile and wearables connect customers wherever they are. Retailers face new and unprecedented challenges.

 

But you know this, right? You’ve developed a digital strategy. You’re selling online. You’ve got a mobile app. Maybe some digital signage in your stores. You’re sorted.

 

Think again.

Read more

I Want To Know What Love Is

Margaret Rodriguez

Happy Valentine’s Day! You know the feeling of being in love: You want to stay with your significant other forever, love them more each day, and tell everyone how great they are. Your customers know it, too! Many companies have begun tracking how their customers feel as part of their CX measurement program. In the CX Index™, we too track how customers felt during their most recent interaction with a brand. 

What’s Love Got To Do With It?

We find that customers who give high scores on Emotion are more likely stay with the brand, spend more on products or services, and tell others how much they love the brand. And just like in relationships, there’s a big difference once your customers fall in “love” – customers in the CX Index who rate the brand a perfect seven out of seven on Emotion, or “love” the brand, say they are 18% to 40% more likely to enrich their relationship with the brand. For brands in all industries, this means that there is business benefit to helping your customers fall in love with you (whether via greater revenue, lower churn, or both).

Let’s Talk About Love

Brands benefit from higher customer advocacy loyalty when customers love them -- but how can brands benefit if they don’t know what love is? Forrester analyzed the specific emotions felt by customers during their most recent interactions with brands in the CX Index.

●     Baby, don’t hurt me. Brands whose customers score them high on Emotion almost never make customers feel negative emotions like frustrated, angry, or anxious.

Read more

Drive Revenue With Great CX — And Math!

Laura Garvin Tramm

In our Drive Revenue With Great Customer Experience, 2017 report, we describe how great customer experience (CX) drives revenue. After reading the report, you may be wondering, how did we link revenue to CX?

We followed a rigorous, academic approach that started with the premise that improving CX drives customer loyalty. Using our Customer Experience Index (CX Index™) survey questions about customers’ loyalty to and spending with a particular brand and combining them with industry-level numerical assumptions, we answered the following question: How likely is a customer to stay with your brand, or spend more, or recommend you to others — and what would that be worth to your organization in dollars and cents?

For each customer, we calculated a loyalty-based revenue potential and a CX Index score. Calculating these numbers at the individual level allows us to track the relationship between CX and revenue throughout the entire range of CX Index scores and develop models to describe the nuances of how CX drives revenue in a particular industry. With these models, we can predict the revenue associated with a brand’s CX improving — or even deteriorating.

We tested several models to find the “shape” that best describes the data. We found that the relationship between CX and revenue potential tends to follow three main shapes:

  • Linear. CX and revenue move in lockstep. Whether you improve a poor experience, a mediocre experience, or a good experience, the impact on revenue will be the same.
Read more

Context Matters: Functional Or Domain Challenges Cross Industries

Jennifer Belissent, Ph.D.

In a previous blog, I outlined how context matters, and specifically how the industry context in which you are doing business matters to the strategic decisions you make. But there are also commonalities across industries. Some business challenges plague multiple industries such as how to improve customer experience, retain loyal customers, and improve sales whether in the retail or hospitality sector, or how to get the inputs you need to make your products and to get your products to market in a timely manner in  the manufacturing or pharmaceutical sectors. And, everyone these days is increasingly concerned about fraud, risk and security.

 

Read more

The Data Digest: It's The Most Emotional Time Of The Year

Anjali Lai

The holidays have a way of bringing people together in more ways than one – and every holiday season I’m reminded of just how universal the power of human emotion is. Regardless of lifestyle, background, and world view, people everywhere are truly emotional beings, moved by fundamental feelings of joy and sadness, hope and fear, love and loss. And anyone who has observed frantic shoppers careening through store aisles or the unbearable anticipation of children on Christmas morning can see that, at this time of year, emotions are at their peak.

Advertisers know holiday shopper emotions better than anyone; they have perfected the art of tugging at heart strings or prompting tears to spur a purchase. But as consumers wear their hearts on their sleeve, retailers broadly must be in tune with – and responsive to – customer sentiments. For example, when passionate shoppers turn to social channels, retailers mustn’t dismiss their cheering or venting. In fact, Forrester’s Customer Experience Index (CX Index™) data shows that consumers often experience their most positive brand interactions on social media – and remember them more favorably than engagements on websites, over email, through phone conversations, and even in person:

Read more

Connecting The Human Being To The P&L

Victor Milligan

The fact that human beings make affinity and spend decisions based in large part on emotion is not new news. It is the underlying logic of advertising – heartstrings are the early sparks of revenue. But there is a reason that most companies have not baked emotion into experience design and into the day-to-day engagement with customers. It's hard to do.

Emotions are situational, dynamic, and hard to read. Yet the gulf between the science of emotion and the business of emotion is closing, creating a set of new tools to convert great experiences into sustained growth.

Last week during an online event, I brought together thought leaders, Anjali Lai, Harley Manning, and Roxie Strohmenger, to translate the science of emotion to the pragmatic business application of emotion. If you were unable to watch it live, here is the replay – and for good measure, here are key takeaways from our discussion:

  • Emotion is the next step in getting to know your customer.
    The customer is now the center of the universe, and to win in this market, companies need to know – really know – their customer. Beyond satisfaction, advocacy, and journeys, companies must understand what makes customers tick and how to influence affinity and spend. Emotion is not the next thing "just because"; it gets to the heart and soul of operating in a customer-led market.
Read more

The Threat (And Opportunities) Facing Banks Today

Victor Milligan
Banks serve as the bedrock of the economy, and that bedrock is changing. These changes represent a direct attack against the current banking business model and associated P&Ls. Our Empowered Customer and North America Consumer Technographics data tells us:
 
  • Only 50% of bank customers are willing to keep their existing level of business with their bank.
  • Only 59% of bank customers are willing to purchase additional products or services, meaning 41% are not.
  • Almost 50% of Progressive Pioneers – the most progressive of our five customer segments representing 25% of consumers in 2016 – indicate they are likely to switch banks in the next year.
  • 21% of Progressive Pioneers have closed a bank account in the past 3 years.
Read more

UK Brands Have Upped Their CX Game

Joana van den Brink-Quintanilha

We’re pleased to announce that this year’s UK Customer Experience Index report is now live! The report is based on Forrester's Customer Experience Index (CX Index™) methodology, which measures how well a brand's customer experience strengthens the loyalty of its customers.

 
Overall, it’s been a good year for UK brands, with the percentage of good and OK scores increasing thanks to a significant drop in poor scores. We found that:
 
  • Six of the eight industries surveyed improved their average score.
  • Twenty-four of the 56 brands surveyed made significant improvements in their experiences.
Read more