Every year in January, Forrester publishes its Customer Experience Index (CxPi), which reports how customers rate their interactions with major companies. We learn a lot from studying leaders in various industries — like USAA, which was the top credit card provider, top bank, and top insurance provider this year.
Last week, we published a follow-up report, which examined companies that raised their CxPi scores by at least five points year over year. Among others, these brands included Aetna (up six points), Citi’s credit card business (up 12 points), Charter Communications (up 20 points as an ISP and up seven points as a TV service provider), and Office Depot (up nine points). Our goal was to discover what, if anything, these firms did to earn their improvements.
And as it turned out, their big gains came as a result of major efforts.
Our research uncovered customer experience initiatives that fell into two buckets. The first bucket was business process re-engineering. Efforts here included creating or enhancing voice of the customer programs, measuring customer experience consistently across the enterprise, and changing incentive programs to reward customer-centric behavior by employees.
But perhaps the biggest impact came from upgrading the customer experience governance process at the enterprise level. For example, Aetna transformed its decentralized part-time customer experience task force into a full-time enterprise customer experience team. Cox Communications made an even more drastic change, consolidating any function with material customer interactions into one group led by a new senior vice president of customer operations.
Lately I’ve noticed a theme in my conversations with customer experience professionals — they’re feeling a bit overwhelmed as to where to start the enterprise customer experience transformation process. Some aren’t sure what to do first, second, and third. Others have a plan but are struggling to get executives to understand it and lend their support (a.k.a. resources).
To help clients solve that problem, I'm leading a workshop called Transforming Your Firm’s Customer Experience on May 11th at Forrester's New York City office. It’s a one-day workshop that starts with an overview of the state of the practice in customer experience today and then takes attendees through our latest research on how to:
Choose the right customer experience strategy for your company.
Build a world-class voice of the customer program.
Generate active executive participation in customer experience programs.
Transform your company culture to be more customer-centric.
I’ll share what’s working inside real companies and lead a series of exercises designed to help attendees benchmark their own firms against best practices. At the end of the day, we'll put it all together into a set of customized, actionable steps designed to jump-start your customer experience program.
This session will be an educational, interactive, and entertaining way to figure out how to start turning your organization into a customer experience powerhouse. For more information and a detailed agenda, please visit the event page for this workshop. I hope to see you in New York!
Last weekend I used my AAdvantage miles on a plane ticket for my husband. I went to AA.com, it was easy to trade off options based on number of miles used and flight schedule. When I went to book, my name and AAdvantage number were pre-populated into the form. I changed the name and number to his but got an error: “The AAdvantage number for Passenger 1 does not match the name entered. Please verify and re-enter.”*
Problem #1: A design problem stopped me from booking the ticket myself on the site.
Problem #2: An unhelpful error message didn’t help me fix the first problem.
Without any other choice, I called for help. Before I could reach a person – or even a menu, I got this message:
“With the refreshed and redesigned AA.com it’s easy to book, explore, and plan all of your travel needs in one place because we’ve organized things better, made it more intuitive, smarter, simpler, cleaner, all to help bring your next trip closer to reality. This is the first step of more exciting changes we have planned for AA.com. Whether you are looking or booking, a better travel experience awaits with the new, easy to navigate AA.com. Book a trip now and see for yourself. To expedite your call, please have your Advantage number ready.”
Problem #3: I had to spend a full minute hearing about how American’s new site could help me — the same site that had already failed to help me.
When I finally reached an agent and explained my problem, she said: “Well, you just had to think on it harder. You needed to leave the Advantage number blank.”
Problem #4: The agent told me I’m stupid. Who likes that?
Armed with new instructions, I tried to book the ticket. But instead I got an error message saying the site had timed out.
We recently published the results of our annual survey of the members of our customer experience professionals peer research group. The group is interesting in that they’re pros: They all work to improve the customer experience delivered by their organizations.
This year, their responses are encouraging — but also very sobering.
Here are some of the encouraging data points. A whopping 86% said that customer experience is a top strategic priority at their company. More than half work at companies that already have a single set of customer experience metrics in place across the entire company, and another 20% said that their firms are considering this move. What’s more, almost as many respondents said that their companies have a voice of the customer program in place, and another 29% said that their firms are actively considering a voice of the customer (VoC) program.
At this point I’m thinking, “Fantastic! Their companies care about customer experience, and they are implementing mission-critical programs that will help them succeed!”
Plus they’re coming from a good place. When we asked our panelists how they’d describe their executive team’s goal for customer experience, 63% of respondents said that their senior executives want to be the best in their industry, while another 13% said that their execs shoot higher and want to be seen as a customer experience leader across all industries.
The most important finding was that for almost two-thirds of the brands in our study, their customer experience ranges from just “OK” to “very poor”. In fact, 35% of scores fell into the undifferentiated “OK” range — our most heavily populated bracket and not a good place to be if you want your brand to stand out from competitors. Only 6% of firms ended up in the “excellent” category, down from 10% of the brands in last year’s report.
What this tells us is that mediocre-to-bad customer experience is the norm, and great customer experience is really hard to find. But why does this matter? Because the old adage “A customer who gets good service will tell one person, yet a customer who gets bad service will tell 10 people” is very true. Another Forrester study shows that about one in three financial customers with a bad experience tells her friends, about one in five recommends that her friends avoid that given company, and one in 10 reduces their value of her accounts.
There are rare moments in technology when everything changes. When the entire framework defining how we interact with machines (and consequently, each other) shifts perceptibly. That happened when the TV was invented, it happened when the computer mouse was made available commercially. These kinds of changes forever alter our economics, our social life, and our individual experiences.
It's now about to happen again. Only this time, the shift that is coming is on such a large scale that not only will it change things dramatically, it will usher in a new era in human economics (and therefore, everything else).
We call the new era the Era of Experience. I'm working furiously to complete a report detailing all the specifics so you'll understand what this era entails and, importantly, what you can do to anticipate this era rather than follow it.
In fact, at our Customer Experience Forum in New York City during the last two days in June, I gave an exclusive preview to the 600+ attendees of what the Era of Experience was. In my speech, I gave a live demo of the PrimeSense technology that the people at Xbox built on to create the Kinect for Xbox 360 platform. This platform incorporates a full-body gesture control interface, voice control, and face recognition. It's as if all the science fiction we've been reading for decades was really just a how-to manual for Kinect. Oh, and this future-defining platform costs all of $149.99 at Amazon.
If you’re reading this post, you’re someone who cares about customer experience. You might even be one of the professionals who works in the field of customer experience full-time.
So I’m going to go out on a limb here and guess that you occasionally get the question, “What is ‘customer experience?’”
Now maybe when you’re asked that question, it isn’t phrased so directly (or politely). For example, I get asked, “Isn’t customer experience just marketing?” And, “How is customer experience different from customer service?” But the bottom line is that people are looking for a definition that’s crisp, useful, and distinct from the definitions of other things that companies do. They are right and reasonable to ask for this — but collectively those of us who work to improve customer experience have failed to answer them.
I mean no offense to the many people out there who have tried to define “customer experience.” I’ve read many of the attempts that are out there, and the ones I’ve seen tend to be longer and more convoluted than necessary.
Not that customer experience is an easy concept to define. The customer experience team at Forrester has been debating the definition of customer experience for a while now, and it took us until recently to reach consensus. We now define customer experience as:
“How customers perceive their interactions with your company.”
His big takeaway is that consumers are still much more likely to provide feedback directly to companies through more traditional channels (like surveys, phone calls, email, and postal mail) than provide feedback through social channels. More specifically, 71% of US consumers who had unsatisfactory service interactions in the past 12 months provided feedback through at least one traditional channel (including email), while only 16% provided feedback through any of the social channels we asked about.
Despite the buzz around social media, this data shows that the majority of customer feedback comes directly to companies via surveys, phone, and email. Organizations should implement sophisticated voice-of-the-customer programs that use text analytics and other technologies to mine this information to better understand customers' needs and the issues they're dealing with, identify best practices, and come up with improvements whenever possible.
Firms are often challenged to undertake transformation at a grand scale — to sustain and scale BPM programs across the organization. All firms are at subtly different levels of maturity, with different histories, unique cultures — and while there are many commonalities, every organization needs to approach the BPM and transformation agenda in subtly different ways.
Enterprisewide transformation involves a large number of people doing some pretty special things. The reality is that each organization will need its own subtle blend of skills, methods, techniques and tools. In a sense, the organization needs to weave its own proprietary method framework — to create its own fabric — a unique approach that reflects its special needs, the maturity of the different business units, the history of change, culture, and political challenges.
There will be people inside the organization that need to own that framework and set of methods, monitor its efficacy, and improve it over time. And while external resources can complement those employees, the executives at the helm should understand that they cannot abrogate responsibility for change. Too often, I hear the transformational objective stated and then followed by something like " . . . and we are looking for an outsource provider to do it all for us.” That sort of attitude is likely to end up in a courtroom (as things go sour down the line).
Coming back to the weave — populating that framework is always a challenge (since you only know what you know you know). What methods, techniques, and approaches does your organization need? For the organization to answer those questions effectively, it needs to understand the likely challenges it will encounter and assess the skills and capabilities required to overcome them.
We just finished judging the entries for Forrester's Voice of the Customer Awards 2010. Announcing the winners will have to wait until we’re onstage at the Customer Experience Forum in New York on June 29. But there is something I want to announce right now: I am really impressed by the entries! :-)
Because I was also a judge last year, I couldn’t help but notice some big changes from last year. Here they are in no particular order: