I Want To Know What Love Is

Margaret Rodriguez

Happy Valentine’s Day! You know the feeling of being in love: You want to stay with your significant other forever, love them more each day, and tell everyone how great they are. Your customers know it, too! Many companies have begun tracking how their customers feel as part of their CX measurement program. In the CX Index™, we too track how customers felt during their most recent interaction with a brand. 

What’s Love Got To Do With It?

We find that customers who give high scores on Emotion are more likely stay with the brand, spend more on products or services, and tell others how much they love the brand. And just like in relationships, there’s a big difference once your customers fall in “love” – customers in the CX Index who rate the brand a perfect seven out of seven on Emotion, or “love” the brand, say they are 18% to 40% more likely to enrich their relationship with the brand. For brands in all industries, this means that there is business benefit to helping your customers fall in love with you (whether via greater revenue, lower churn, or both).

Let’s Talk About Love

Brands benefit from higher customer advocacy loyalty when customers love them -- but how can brands benefit if they don’t know what love is? Forrester analyzed the specific emotions felt by customers during their most recent interactions with brands in the CX Index.

●     Baby, don’t hurt me. Brands whose customers score them high on Emotion almost never make customers feel negative emotions like frustrated, angry, or anxious.

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There’s More To Service Design Than You Think You Know

Ryan Hart

TSA, America’s infamous airport security organization, made headlines last year when it placed the blame on passengers for long lines at airport security, claiming that individuals were at fault for showing up to checkpoints unprepared.

Any time an organization puts the onus back onto the user for not being able to properly navigate a service should raise a huge red flag.

Now if the TSA scenario doesn’t scream service design misalignment to an informed CX pro, then it’s important to clarify what we mean when we talk in terms in “service design.” By Forrester’s definition:

“Service design is a creative, collaborative process that draws from the tools of human-centered design to holistically improve and innovate new value for users as they move through sequential service interactions.”

As CX pros continue to build out their CX design tool kits, they will have an advantage if they can discern that service design allows them to:

  • Scale a human-centered mindset through processes and tools. Design-led organizations such as Apple, Tesla, Airbnb, and Slack won’t go to market with a new service until they carefully analyze and understand the impact it will have on customers as they move along the service journey.
  • Take the pulse of the broader CX ecosystem. The holistic, end-to-end nature of service design gives CX pros multiple opportunities to appraise the health of a broader user journey. Logically, process reengineering around the needs of the customer thus forms a critical component of service design. 
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Drive Revenue With Great CX — And Math!

Laura Garvin Tramm

In our Drive Revenue With Great Customer Experience, 2017 report, we describe how great customer experience (CX) drives revenue. After reading the report, you may be wondering, how did we link revenue to CX?

We followed a rigorous, academic approach that started with the premise that improving CX drives customer loyalty. Using our Customer Experience Index (CX Index™) survey questions about customers’ loyalty to and spending with a particular brand and combining them with industry-level numerical assumptions, we answered the following question: How likely is a customer to stay with your brand, or spend more, or recommend you to others — and what would that be worth to your organization in dollars and cents?

For each customer, we calculated a loyalty-based revenue potential and a CX Index score. Calculating these numbers at the individual level allows us to track the relationship between CX and revenue throughout the entire range of CX Index scores and develop models to describe the nuances of how CX drives revenue in a particular industry. With these models, we can predict the revenue associated with a brand’s CX improving — or even deteriorating.

We tested several models to find the “shape” that best describes the data. We found that the relationship between CX and revenue potential tends to follow three main shapes:

  • Linear. CX and revenue move in lockstep. Whether you improve a poor experience, a mediocre experience, or a good experience, the impact on revenue will be the same.
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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?
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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.
 
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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.
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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.
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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.
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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.
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