Why Customer Experience Will Become The #1 CIO Priority

Nigel Fenwick

Customer experience isn’t typically at the top of the CIO’s priority list but it was certainly front and center in New York this week.

I believe things are about to change for CIOs. In the new era of always-connected consumers – what Forrester calls The Age Of The Customer – customer experience is so critical that I predict it will become the #1 priority for CIOs. In part because unhappy customers have the power to alter the course of any organization, as Netflix CEO Reed Hastings discovered in 2011, when his US customers forced him into an about-turn on his strategy to split movies-by-mail from online streaming.

But investing in customer experience is tricky because it’s often seen as an abstract thing with little tangible ROI. Companies like USAA, a US insurance company with a strategic focus on customer experience, have spent years re-shaping their entire organizations to think from the outside-in, focusing on the end customer. USAA did this because they believed it was the right thing to do, not because of some compelling business case.

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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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Winning The Customer Experience Game (Part 2)

Nigel Fenwick

It may come as a surprise to some to hear that technology teams play an important role in the implementation of an effective customer experience strategy, but that's the conclusion from our latest research.

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Winning The Customer Experience Game

Nigel Fenwick

We all hear and read stories of terrible customer experiences; like me, you probably have had your own share of bad experiences. And social media has made it possible for these bad experiences to be shared instantly with millions of people. But in our journey through life, we also experience service that exceeds our expectations. And as we read reviews online, we're more likely to see a mixture of both good and bad experiences. For example, I recently posted a glowing review for a B&B in Bethel, ME, even though a few things about my stay would have typically caused me to deduct points. My five-star review was extremely positive because the proprietor had blown away my expectations on service, delivering an experience way beyond any I've had in a five-star hotel.

But excelling at the personal touch in a small-town B&B is far easier than doing it at scale in a multibillion-dollar business. Yet there are companies that consistently deliver great customer experiences. (My colleagues even wrote a book on them). They aren't perfect all the time, but, on average, they are better than their competitors. At Forrester, we identify these companies through our annual Customer Experience Index (CXi) research. Toward the top of the 2013 index, we find companies like Marshalls, Courtyard by Marriott, USAA, TD Bank, Southwest Airlines, Vanguard, Home Depot, Kohl's, Fidelity Investments, and FedEx.

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Seeking The Elusive Zone Of Disruption

Nigel Fenwick

As I analyzed examples of digital disruption I’ll be highlighting at the upcoming CIO Forum — “Leading Digital Disruption” — I was struck by the way in which every example could be tied to a shift in customer experience along two dimensions: pleasure and time.

Along the pleasure dimension, disruptive technologies significantly increase the pleasure (or reduce the frustration) derived from the customer experience. For example the iPad significantly increased my pleasure in browsing the web and engaging with brands I like through tailored apps.

And on the time dimension, disruptive technologies save customers significant amounts of time; time being the most precious commodity in the world. My iPad allows me to do many things much faster than I could before because it is easy-to-use and contains many apps which connect my lifestyle together.

So I began to explore how CIOs might use this understanding to help shape the analysis of prospective disruptive strategies. What I came up with is the customer experience zone of disruption (or CxZOD for short — see illustration).

In the zone of disruption, the impact on pleasure and/or time is so great as to cause a disruptive force in the marketplace. When coupled with an assessment of potential market impact, this becomes an easy-to-understand visual model for comparing potential disruptive initiatives.

In my session at the forum, I’ll be exploring this model and showing how to use it to better understand existing technologies, such as mobile apps, and their potential to become disruptive.

What disruptive digital technologies would you place in the CxZOD? Post your comments below or Tweet #CXZOD

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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The Revival Of Digital Asset Management

Stephen Powers

 

This is a guest post from Anjali Yakkundi, a Researcher at Forrester Research. It originally appeared on destinationCRM
 
By now, everyone knows that engaging and dynamic customer experiences are a key competitive advantage, and “business as usual” will no longer suffice to support these engaging digital experiences. Organizations that don’t embrace this customer-focused thinking will risk missing out on important opportunities and will lose strategic advantages.
 
From a technology standpoint, the key to success will be integrated, best-of-breed customer experience management (CXM) solutions. This includes technologies such as Web content management (WCM), CRM, eCommerce, digital asset management (DAM), site search, and Web analytics.
 
We recently completed an evaluation of the DAM market. DAM is a key process-based solution that focuses on managing rich media content (e.g., videos, images, graphics, and audio). Despite the well-documented importance of rich media in cross-channel customer experiences (consider the amount of video and images on the Web or in marketing content now versus just five years ago), DAM solutions have long been overshadowed by other CXM technologies. These solutions have traditionally been relegated to niche, rich-media-heavy industries such as media, publishing, and entertainment. But as more and more organizations understand the importance of a cross-channel rich-media strategy to improve customer experiences, DAM for customer experience is experiencing a revival in interest across verticals.
 
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