It’s that great time of year when I finally get to talk publicly about Forrester's Forum For Customer Experience Professionals in New York at the end of June. If you’ve ever been to one of our events, you know that we always have a theme, and this year that theme is “Why Good Is Not Good Enough.”
We picked our theme because of the good news/bad news story told by our Customer Experience Index (CXi) results this year. First, here’s the good news: The number of brands in the “very poor” category of the CXi is down to one out of 175 brands we studied. What’s more, only a handful of brands — 10% — are in the “poor” category. Together, those findings show that as customer experience improvement efforts got traction over the past year, the number of truly awful experiences dropped like a rock.
Now for the bad news: Just 11% of brands in the CXi made it into the “excellent” category.
Taken together, those two pieces of news mean that most brands are bunched up in the middle of the curve — not awful in the eyes of their customers but not differentiated either. I think of this situation as “okay is the new poor” or, in my darker moments, “the year of ‘meh.’” Regardless, it adds up to the same thing: A merely good customer experience is no longer good enough if you want incremental sales, positive word of mouth, and better customer retention.
Roughly half of companies on the path to customer experience maturity say that they’re in the repair phase today — and that’s probably a conservative estimate. But there are companies at more advanced stages of CX maturity, including a few in the most advanced phase, differentiate. That’s where firms reframe business challenges in the context of unmet customer needs, connect innovation ideas to their customer experience ecosystem, and infuse innovations with the brand.
We had two speakers at our event who represented companies in the differentiate phase: Dean Marshall, director of Lego brand retail store operations Europe, and Declan Collier, CEO, London City Airport. What is it that their organizations do that’s so different?
Lego stores goes beyond even the typical design best practices used by companies in less advanced (but still pretty advanced!) phases of CX maturity, practices like ethnographic research and co-creation. How? By combining the two.
A few months ago in my blog about Drake and Service Management, I hinted twice that I would talk later about how to measure success and how to change from a culture of speed. In the report “This Isn’t Your Grandfather’s Service Desk”, we have taken the research from our team that supports Customer Experience Professionals and applied it to the IT Service Desk. Forrester recommends that all IT service desks determine the Customer Experience Index (CXi) by taking a survey of business customers to test how effective (met the needs), easy, and enjoyable their interactions have been with the IT Service Desk over the past three months. By measuring the customer experience and coupling it with the metrics of speed traditionally collected, a true picture emerges of the success of an IT Service Desk. However, we found that only 1/3 of business customers are surveyed about their experience with the Service Desk whether it’s random surveys or surveys after each ticket. We can do better!!
If you haven’t started measuring the customer experience at your IT Service Desk, make a New Year’s resolution to start now (and I don’t mean one of those New Year’s resolutions that peter out about 2 weeks into the New Year!!!). Starting with a baseline will help you understand how you are progressing at customer experience and give you an understanding of what needs to be fixed in order to make the customer experience at the IT Service Desk even better.
With 2013 coming to an end, it’s time to bring out the crystal ball and make some predictions about 2014. Those who follow Forrester’s research will know that we’re living in the age of the customer, a period in which customer obsession will be the key to winning in all markets. Computing is a critical technology element in the age of the customer: The use of tablets by sales professionals creates richer experiences for prospects and customers, even as the use of wearable technologies by health professionals helps phlebotomists find the vein in a patient’s arm more quickly. Computing is a front-line, customer facing experience that helps companies win and serve customers more effectively.
With that context in mind, I present six meta-trends that will be critical for computing in 2014:
Earlier this year, I spoke with Kathleen Cattrall, interim chief experience officer at VCA Animal Hospitals about the company’s customer experience transformation efforts. VCA is a publicly traded company (fittingly, its NASDAQ ticker symbol is WOOF) that owns and operates more than 600 pet hospitals in the US and Canada. Its work to create more customer-centric hiring processes features in my latest report, "How To Hire And Onboard Customer-Centric Employees."
Kathleen and her colleague Aaron Frazier were gracious enough to answer a few more questions about their progress in building a more customer-centric culture and what they’ve learned about creating great pet-owner experiences. Here are some of their insights.
Q. How did VCA know it needed to improve customer experience? Was there a “burning platform,” or did someone senior at the organization decide it was time to make a change?
A. Art Antin, co-founder and COO, was the real visionary here. VCA was approaching its 25th anniversary, and Art was frustrated with clients visiting less frequently. Our customer retention rate was lower than VCA wanted to see. Complaints were escalating, and they all pointed to a poor customer experience. Art said, “We’ve spent 25 years becoming the leader in veterinary health services. We’ve accomplished more than any other company in that regard. We need to focus the next 25 months on improving our customers’ experiences with us.”
What is “customer experience maturity”? We define it as the extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way. In other words, does the organization apply the same level of business discipline to customer experience as it does to well-established business practices like marketing, logistics, and accounting?
In our study of how companies become mature at the practices in the customer experience discipline, we’ve discovered that successful firms all follow the same path, which passes through four phases:
Repair. Companies find broken experiences, fix them, and measure the results.
Elevate. Firms start to adopt practices that lead them to deliver sound experiences in the first place.
Optimize. Companies become systematic at customer experience practices.
Differentiate. Firms reframe business challenges in the context of unmet customer needs, connect innovation ideas to their customer experience ecosystem, and infuse innovations with the brand.
I regularly hear CIOs and IT suppliers discussing the “four pillars” of cloud, social, mobile, and big data as if they’re an end in themselves, creating plenty of buzz around all four. But really, they’re just a means to an end: Cloud, social, mobile, and big data are the tools we use to reach the ultimate goal of providing a great customer experience. Most CIOs in Australia do understand that digital disruption and customer obsession are the factors that are changing their world, and that the only way to succeed is to embrace this change.
Businesses that thrive and grow in the age of the customer are obsessed with customer delight: the most successful companies are reinventing themselves to systematically understand and serve increasingly powerful customers. This business reality creates new imperatives for everyone inside an organization, and infrastructure & operations (I&O) professionals are not immune. So the question becomes, how does I&O participate in the transformation of the enterprise toward customer obsession?
The answer to this question is important, because technology's role in business is rapidly changing -- from a world in which Information Technology (IT) enabled a company to function more efficiently, to a world of Business Technology (BT), which we define as technology, systems, and processes to win, serve, and retain customers. Yet customer-facing technologies aren't always (or even often) the traditional role of I&O. So how can I&O participate?
How about starting with a simple dictum? Spend more time on technologies that will inspire and delight customers, either directly or indirectly. To start this journey, I'd like you to watch this short video of how a digital billboard has gone viral:
In my new report, "How To Hire And Onboard Customer-Centric Employees," I describe how companies can transform their hiring processes to ensure new employees are customer-centric. CX professionals must partner with their HR department and hiring manager colleagues to change the way they screen, interview and onboard new employees. The report describes specific ways to make each step in the hiring process more customer-centric. For example:
Get customer-centric applicants into the hiring funnel. A customer-centric hiring process starts by attracting the right kind of applicants and filtering out the wrong kind. The careers section of a website provides an opportunity for companies to tell applicants what they value in employees. For example, The Container Store's website describes the company's commitment to putting employees first and draws a clear distinction from other companies that focus on shareholders first. Contrast that first impression with the careers landing page on Bed Bath & Beyond's site, where the opening sentence talks about stock performance and its expansion.