Drive revenue with great customer experience – Our 2017 analysis will help you make the case for CX investments

Maxie Schmidt-Subramanian

If you are like other CX pros, at some point in your CX career you’ll encounter the “money question.” Your CEO will ask you: “What's an improvement in our customers’ experience worth in dollars and cents?” And it’s likely that you won’t have a (good enough) answer. I say that because I know that 50% of CX pros we surveyed have not modeled how CX quality influences customer behavior.

We know great CX drives revenue. But to make the case, you need a more nuanced and sophisticated understanding. So we used data from our Customer Experience Index (CX Index™) and modeled the revenue impact of improving CX. To do that, we asked three questions:

  1. What is a customer’s loyalty (retention, enrichment and advocacy) worth in revenue dollars?
  2. Is there a relationship between CX quality and loyalty-based revenue?
  3. How does the relationship between CX and revenue potential differ by industry?
Read more

Forget Amazon — Kmart Has Already Disrupted Australian Retail

Tom Champion

In the lead-up to Mount Vesuvius’ catastrophic eruption — as foreshocks became more frequent and the air grew tainted — the citizens of Pompeii gossiped about a celestial force set to punish them for their sins. Around 2,000 years later, and there’s the same apocalyptic mood around Amazon’s looming impact on retail in Australia.

But while Amazon’s eventual launch will certainly disrupt incumbents, don’t overlook the impact of another silent assassin: Kmart.

Kmart has been gracefully reinventing itself while its peers are getting squeezed out of the picture. Last year, Kmart achieved a market-leading 14% increase in revenue while also achieving the top increase nationwide in its Customer Experience Index (CX Index™) score
 
This is no coincidence. Forrester has confirmed the link between customer experience improvement and revenue growth. It leads to customers who spend more, recommend you to others more, and stick with you. But what is really surprising is the hypnotic way Kmart achieved this.
 
Read more

Categories:

Physical Spaces Find A New Purpose In A Digital World

Riccardo Pasto

China is set overtake the US as the largest retail market by the end of 2016, with retail sales approaching $4.9 trillion. In the Customer Experience Takes Center Stage In The Future Of Retail report, we outline the forces that are reshaping China's retail landscape and driving this massive growth. A handful of Chinese internet giants — Alibaba, JD.com, Baidu, and Tencent — are battling to gain dominance in online-to-offline (O2O) commerce and local services, logistics infrastructure and last-mile delivery, fresh food eCommerce, and cross-border eCommerce. Consumers in metro China have quickly grown more sophisticated, demanding consistent, high-quality interactions with brands. To further improve customer experiences and grow sustainably in China's retail market, successful retailers:

  • Fuse the online and offline worlds. O2O strategies draw customers from online channels to physical ones and vice versa. The ultimate goal is to blur channels and create seamless omnichannel CX. Customers don't think in terms of channels, and you shouldn't either. CX pros must work closely with enterprise architecture pros to break down data silos and build agility across systems, processes, and organizations in their company.
Read more

Categories:

New Benchmarking Data: State Of VoC Programs, CX Research And Journey Mapping…

Maxie Schmidt-Subramanian

… in the making. Do you want to know...

  • How future-proof is our VoC program?
  • Are we doing enough to gain deep customer understanding?
  • Are we maximizing our use of journey mapping and should we be doing journey analytics?

Take our benchmarking survey to get the answers and benchmark your and your company's efforts!

As a thank you for your contribution, you’ll receive an exclusive report on the data - highlighting the state of CX research, journey mapping and VoC programs at some of today’s leading firms.

Our survey shouldn’t take more than 10 minutes to complete. It will be open until November 30th.

We know you are busy and appreciate the time you take to share your experiences with us. If you have any questions, please reach out to Kelly Price (kprice@forrester.com).

Can’t wait to hear from you!

Thank you,

Maxie

The India Customer Experience Index 2016, Part 2: These Industries Performed Well

Amit Bhatia

In my previous blog post last week I introduced the India Customer Experience Index 2016 report, and spoke briefly about over-all trends in this year’s results compared to last year. In this post I’ll explore more industry-level findings.

In this year’s CX Index results, we found that:

  • Financial services (Banks & Credit Cards) performed well. In fact, along with PC Manufacturers, they topped the CX Index in terms of industry-averages. Financial firms recognize that the lifetime value of each customer relationship can be significantly higher than in other industries, so they strive to deliver better-quality experiences to their clients. In contrast, Auto & Home Insurance companies were found lacking in the experiences they delivered to clients, and brought up the rear of the industry-average rankings.
  • Traditional and Digital-only retailers improved their CX significantly. Digital-only retailers are realizing that deep discounting can only take them so far, and are now focusing on delivering differentiated CX instead. Feeling the heat from digital players, traditional retailers made great strides to improve their CX too. Despite these efforts, both traditional and digital-only retailers moved from delivering ‘poor’ CX last year to just ‘OK’ CX this time around.
Read more

India Inc.: Here's What Indian Customers Think Of Their Experiences With You (The India Customer Experience Index 2016, Part 1)

Amit Bhatia

When it comes to their customers, Indian organizations are an ambitous lot. In a Forrester survey of Indian business and technology decision-makers, 70% of respondents said CX was going to be high or critical priority for their companies. But that is just one part of the story. CX is about what customers perceive, not what companies claim. What do Indian customers think about the experiences they have with companies in India?

To find out, in 2016, Forrester used its Customer Experience Index (CX IndexTM) methodology to measure and benchmark the CX of 72 India brands across eight industries. 

Forrester’s CX Index score measures how successfully a company delivers customer experiences that create and sustain loyalty. CX Index scores were based on an online survey (fielded in May through July 2016) of 18,033 individuals ages 18 and older in nine metropolitan areas in India.

The India CX Index 2016 report containing the highlights of the 2016 survey results is out.  Here’s a sneak peek into the report.

Compared with 2015, we saw few interesting improvements. For example,

  • Most industry average scores went up. Each year, we rank industries by the mean scores of their brands. This year, some industry averages increased as much as six points over last year. But last year’s leaders — banks and mobile manufacturers — found it tougher to do, and made only modest gains overall.
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

Lots To Learn From Pokémon GO

Ryan Hart

The Pokémon GO phenomenon washed across the globe like a tsunami — and while the pace at which it subsided was almost as sudden as its inundation, the customer experience (CX) lessons that it has left behind are invaluable. The game’s success reveals key elements that any company can borrow to create its own powerfully engaging multisensory experiences. By simultaneously activating multiple neural systems and chemicals, a larger, multiplier effect is observed. Consider how Pokémon GO:

  • Stokes the anticipatory-reward system with constant yet unpredictable rewards. The euphoric “high”  that we feel when we anticipate a future reward, especially as it gets closer, motivates people to continue pushing for the reward in order to receive more intense and stimulating dopamine-driven pleasure sensations. However, an additional component in Pokémon GO’s success is the unpredictability of discovery. Whether it’s a shadow of a rare monster in the vicinity, the anticipation of what’ll be hatched from a 10-km egg or the Pokémon that just appears out of nowhere; the potential-reward scenario increases levels of dopamine like no other.
Read more

A Few Good CX-related Book Recommendations For CX Day

Tony Costa

As analysts, we frequently get asked by clients and practitioners to recommend books they can read on various CX topics. So, in the spirit of CX Day, we (the CX analysts at Forrester)  assembles a list of some of our favorite CX-related books to share with the A fewCX community. We hope you find them as inspiring and helpful as we have. Enjoy!

General CX

Read more

Customer Experience Q&A with Scott Jones, VP, Global User Experience Design, Expedia Worldwide

Harley Manning

In its early days, the online travel industry focused on speed, ease-of-use, and cost-effectiveness. That was a great start but it didn't go far enough:  Travel is a complex and often daunting purchase decision -- one layered with conflicting emotions like aspiration, excitement, and even fear. How has the industry evolved to deal with the emotional aspects of the travel experience? 

Scott Jones is head of user experience design for online travel giant Expedia.  Scott will be one of our featured presenters at our CXSF 2016, October 20-21. In advance of the event, we sat down with Scott to explore some key aspects of his role and Expedia’s CX strategies.

How has Expedia evolved its user experience to address the complex multidimensional context of travel planning?

Jones: Several years ago, in the wake of a rapidly changing consumer tech landscape, we recognized the critical need to make heavy investments in new technology and intelligence to stay innovative, relevant and nimble.

Since then we implemented a “test-and-learn” approach, which allows our teams to propose an idea, build the hypothesis behind it and implement a small test to understand the customer response. This approach, coupled with our expanded user experience research capabilities, has allowed us to learn faster and better understand the “why” behind our customers’ behaviors.

We have also built an innovation research lab on our property to conduct tests directly with customers. Using eye-tracking and facial-movement technology, we can now measure what and where people look at and why. This allows us to get a more nuanced understanding of what customers want and how to move them from browsing to booking.

Read more