Telstra's Creative Use Of Bandwidth Raises Its Customer Experience Game

Clement Teo

Have you ever wondered if your home broadband is being effectively utilized? What if you could squeeze more out of your data allowance when outside your home? Telstra may have cracked this problem in Australia: It will invest more than A$100 million to build a nationwide Wi-Fi network as part of a strategy to increase connectivity in the places Australians live, work, and visit, including cafes, shops, sports grounds, and transport hubs.

The strategy aims to offer all Australians — whether or not they’re Telstra customers — access to 2 million Wi-Fi hotspots across the nation within five years. Telstra home broadband customers can install new gateways that allow them to securely share a portion of their bandwidth with other Telstra Wi-Fi customers in exchange for broadband access at Telstra hotspots across the nation. Non-Telstra customers can purchase daily hotspot access. The network, scheduled to launch in early 2015, will also reach overseas; an exclusive deal recently concluded between Telstra and global Wi-Fi provider Fon will allow people to connect at more than 12 million hotspots worldwide.

What It Means

Telstra has been at the forefront of improving the telco customer experience; its CEO, David Thodey, has been a major driving force behind that. This has put Telstra’s local competitors on notice and provides valuable lessons in how to raise the customer experience game:

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Introduction

Craig Menzies

My name is Craig Menzies, and I am what Forrester calls a "boomerang." Forrester has a long tradition of welcoming back former employees who have gone off and done something a bit different for a while. In my case, I left Forrester at the end of 2008 in London and rejoined in August 2013 here in Sydney, Australia. In my previous role, I was a member of the global customer experience (CX) team and the lead CX analyst for Europe. While away from Forrester, I held several senior user experience and experience design leadership roles with agencies in the UK and Australia as well as ran my own independent customer experience and digital strategy consulting practice.

However, I am thrilled to be back as a principal analyst serving customer experience professionals and excited to be not only launching a dedicated customer experience research stream based out of Australia but also focusing on the rest of the Asia Pacific region. Most specifically, I will be spending a significant amount of time focusing on regions like Singapore, Hong Kong, New Zealand, etc. Forrester believes strongly in both the need for more research in marketing and strategy disciplines in this region and these regions' demand for real relevant regional research.

My core remit is to provide world-class user experience and customer experience strategy services and research streams to this region, which I now call home. I am also very proud to be again a member of the global customer experience team and to have the privilege to represent our industry-leading thinking in the customer experience space. This includes our host of methodologies and frameworks that have helped customer-experience-obsessed companies transform the customer experiences they deliver. These include our frameworks for:

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CX And An Ex-CIO

Nigel Fenwick

This week's Customer Experience Forum was far more than just an event for customer experience (CX) professionals. It was an event for any business leader who truly cares about customers. And this includes many CIOs.

Attendees gather at the 2013 NYC Forrester CX Forum

As far as I'm concerned, the best CX presentation by a guest speaker was given this morning by a former CIO, Paul Heller. Paul is now Managing Director of the Retail Investor Group at Vanguard. While his session was energetic and full of humor, it also conveyed his message about the business of delighting clients very clearly. Paul suggests we all need to get in touch with the why, how and who of our business: 

  • Why are customers doing what they do? To answer this question we really need to get to know the reasons for customers doing business with us. Vanguard took the time to ask their customers why they invest and they discovered people want to have more time to do the things they enjoy, they want less stress and to avoid being bored. Trust me, it's way funnier the way Paul describes it.
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Want Better Customer Experiences? Adopt The Six Disciplines Of CX Maturity

Megan Burns

This morning we released the latest version of an annual client favorite: “How Companies Improved Their CXi Scores, 2013.”

As we do each year, we compiled a list of brands whose scores went up five or more points in our Customer Experience Index over the past year (in this case, between 2012 and 2013). We asked CX leaders from those brands if they’d be willing to tell us what they did to drive those improvements. Finally, we synthesized their answers into a list of best practices that others can learn from.

As you’d expect, we heard about a host of projects designed to boost the three aspects of customer experience quality. Here’s just a sampling of what we uncovered:

  • Meets needs. Marriott used one of my favorite qualitative research techniques — diary studies — to understand exactly when its guests would need a mobile device during their travels. The firm identified roughly 300 user needs that a mobile device could fill, prioritized them, and is using the resulting hierarchy as a road map for future investment.
  • Easy. Vanguard and Progressive were just two of the brands that said they upgraded website designs to make it easier for customers to get the information they need online.
  • Enjoyable. Days Inns trained more than 20,000 employees on how to make hotel guests feel welcomed.
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Q&A From Last Week's Customer Experience Index Webinar

Megan Burns

Last week, I did a webinar on Forrester’s Customer Experience Index, 2013. We didn’t have time to answer everyone’s questions, so I thought I’d post answers to those we didn't get to.  

"Can consumers respond to having an experience with multiple companies?"

In some cases, yes, and in some cases, no. In the bank, credit card provider, insurance, consumer electronics manufacturer, airline, hotel, and rental car categories, they can pick up to two brands they’ve done business with most in the past 90 days. For retailers, they can pick up to four. For the other six industries, they are limited to one.

"What is the threshold to determine if the person is a customer? Interactions one time, over time? A recent experience?"

We don’t strictly require the person to be a customer. The person could be a prospect or a former customer. All we ask is that this person has done business with the company in the past 90 days.

"Why don't you track high tech?"

We do, actually. Two years ago, we added the consumer electronics manufacturer industry, which covers most of the latest high-tech gadgetry. We don’t include software in part because there are just so many types of software and so many brands. It would be hard to narrow them down to something manageable.

"How does CXi map to NPS?"

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The Customer Experience Index, 2013

Megan Burns

Just moments ago we released the sixth annual Forrester Customer Experience Index (CXi), our yearly benchmark of customer experience quality as judged by the only people whose opinion matters — customers.

The 2013 CXi is based on research we did in Q4 2012. It reflects how consumers perceived their experiences with 154 brands across 14 industries. If you’re not familiar with the methodology, or just want a refresher, check out “Executive Q&A: Forrester’s Customer Experience Index, 2013.” We put all the nitty-gritty details in there.  

But what about the big picture? Of course, there are winners and losers (we name them in the report.) There is a tale of two banks — one whose score jumped up by 11 points versus last year, and another whose score plummeted by 24 points.

Through it all, though, one common theme leapt out: 

In 2013, it’s all about value.

Many of the top brands this year, including high-scorer Marshalls, deliver solid customer experience at a manageable price. We saw this dynamic in the hotel space, where Marriott’s Courtyard brand beat out all other hotel brands. And we saw it in the airline industry, where perennial favorites Southwest Airlines and JetBlue Airways once again swept the competition with their combination of great experience at a great price.

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Introducing The Experience-Driven Organization Playbook

Megan Burns

If you are trolling around our website, you may have seen that we’ve introduced a new way to organize our research, something that we call playbooks.

We made this change because for years we’ve been producing reports that connect to each other in many ways. The connections are obvious to those of us who create the research, but until now, they may not have been as obvious to our many readers.

Playbooks make it easier for you to find the research we have about every one of your customer experience challenges. What’s more, playbooks suggest related research on topics that you might not have even thought to look for. For example, if you’re looking for best practices for how to improve your Customer Experience Index Score, you’ll also see advice on how to sustain continuous improvement once you take the first step.

The first playbook for customer experience professionals is called The Experience-Driven Organization Playbook. It lays out our vision for what it takes to deliver a consistently good customer experience. You can get an overview of all of the research in the playbook by reading “Transform To An Experience-Driven Organization” by my colleague, Harley Manning. Or dive right in with my report that sets the vision for what it takes to build a mature customer experience practice, “Customer Experience Maturity Defined.”  

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Three Ways To Use CXi Data To Inform Customer Experience Improvement Efforts

Megan Burns

In the two months since I published "The Customer Experience Index, 2012," the number of companies requesting a deeper look at the data has been quite high. Many have asked me to suggest ways to use the information that’s available, so I thought I’d share the analyses I've found most interesting so far:

  1. Compare Customer Experience Index (CXi) respondents to your company’s target customer profile. As part of the CXi survey, we collect a range of demographic data including age, gender, marital status, household income, employment status, parental status, and location. Clients find it helpful to see if differences between our scores and their internal data stem from the fact that we’re surveying different populations. They’re also using it to think through why scores on a given criteria are what they are — for example, if most respondents for a TV service provider have small kids, the firm’s parental controls may have a bigger impact on the “meets needs” score than they would if most respondents had grown children.
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Enjoyable Experiences Are The First Step To Creating Emotional Connections With Customers

Megan Burns

The Holy Grail of customer experience for many firms goes beyond useful and easy to interactions that create an emotional connection with the customer. That’s not easy to do, but step 1 is creating an experience that is at least enjoyable. Now, before you object . . . I’m not talking Disney-level enjoyable here — just generally pleasant and maybe even a little fun. Two brands that proved it’s possible with high scores on the CXi’s “enjoyable” criteria are:

  • USAA (bank): 84%.
  • Courtyard by Marriott: 83%.
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It's Not Easy Being Easy

Megan Burns

Thanks for all your thoughtful responses to last week’s post about why companies fail to meet customer needs. Clearly there’s more work to be done in that department, but for now, I want to move on to the next Customer Experience Index (CXi) criteria: “easy.” Many firms claim to be easy to do business with, but which ones got the highest rating from customers?

This year, USAA (bank) and Kohl’s both earned a score of 92% in this category.

For USAA, there is definitely some overlap between its ability to identify latent customer needs and its level of easiness. For example, depositing a check via mobile phone makes the deposit process easier for everyone, not just the most geographically dispersed parts of the customer base. Strong customer understanding also led to creation of the Auto Circle experience, which is designed to make the entire car buying process easier for customers, not just the parts that a financial institution like USAA would typically have been involved in.

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