*New* Forrester Wave: Customer Feedback Management (CFM) Platforms Q2, 2017

Maxie Schmidt-Subramanian

The new Forrester WaveTM: Customer Feedback Management Platforms, Q2, 2017 (paywall) is live! CFM platforms are part of a larger VoC vendor landscape and help CX professionals manage complexity by centralizing and automating essential VoC activities. This Wave scores 10 vendors that matter based on offering, revenue and interest by Forrester clients: Clarabridge, Confirmit, InMoment, MaritzCX, Medallia, NICE, Qualtrics, Satmetrix Systems, SMG, and Verint Systems.

To score these vendors, we developed a comprehensive set of evaluation criteria in three high-level buckets: Current offering, strategy, and market presence. The criteria and their weighting is based on past research and conversations with vendor and CFM users. Client references played a large role in our evaluation: We conducted 30 hours of client reference calls and fielded a survey among 60 client references.

This Forrester Wave evaluation uncovered a market in which four providers emerged as leaders — though their strengths differ: InMoment, Medallia, Qualtrics, and Confirmit. Another three providers – Clarabridge, MaritzCX, and SMG – are Strong Performers. And Satmetrix Systems, NICE, and Verint Systems are Contenders.

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Learn How Your CX Practices Measure Up By Completing Forrester’s New Survey

Maxie Schmidt-Subramanian

We identified 12 essential CX practices every organization must master to create and sustain experiences that drive customer loyalty. An exceptional customer experience (CX) doesn’t happen by accident!

Take our simple new Customer Experience Practices Survey to learn how well your organization is performing in the essential 12 practices.

You’ll see these key practices and how we evaluate them. We’ll keep your response confidential, anonymize all responses, and use them in a benchmark study – and we'll send you a copy of the final report as our thanks for participating.

Learn How Your CX Practices Measure Up By Completing Forrester’s New Survey

Rick Parrish

An exceptional customer experience (CX) doesn’t happen by accident. There are 12 essential practices every organization must master to create and sustain experiences that drive customer loyalty.

To learn how well your organization is performing in these 12 practices, take our simple new Customer Experience Practices Survey. You’ll see these key practices and how we evaluate them. We’ll keep your response confidential, anonymize all responses, and use them in a benchmark study – then send you a copy of the final report as our thanks for participating.

The Case For Coverage Clarity: Why Health Insurance Providers Need To Make Things Clear

Danielle Travaglini

Have you ever thought about going to the doctor and questioned, even momentarily, “Hmm, I wonder if my insurance will cover this?” Or have you ever received a medical bill that was higher than expected? If so, you know these situations don’t elicit a great feeling — and you’re not alone.

The fear of not being covered or the disappointing surprise of finding out you owe more than expected are all-too-common and unpleasant feelings that customers face when it comes to dealing with health insurance companies.

We used Forrester’s Customer Experience Index (CX Index™) Consumer Perspective Online Community to understand specifically what consumers feel when there is lack of clarity surrounding policy coverage details. They say: 

But the key question you are probably asking yourself is, “Do these negative emotional experiences matter — do they affect the bottom line?” We find that the answer is a resounding “Yes.” Lack of clarity or fear of not being covered impacts the overall emotion a customer has about their health insurance provider, which in turn significantly impacts their likelihood to recommend their health insurer to others.

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CX Sydney Forum 2017: Guest Q&A With Australia Post’s Christine Corbett

Michael Barnes

Successful business leaders drive their organizations to create experiences that continually meet or exceed customer expectations. At our CX Forum in Sydney on May 9, Forrester thought leaders and a world-class roster of industry innovators will come together to explore the current and emerging best practices for the design and delivery of exceptional customer experiences in digital channels.

I recently caught up with one of our keynote speakers — Christine Corbett, chief customer officer at Australia Post — to discuss the importance of creating and nurturing a CX-driven culture. Here’s what she had to say:

How has the age of the customer affected the postal service? How have your customers’ needs evolved?

While the rise of the digital economy has created challenges for our traditional letters business, it has opened up exciting new opportunities for Australia Post in parcels. With the rapid growth in online shopping, our customers are looking for greater access, convenience, and choice in the way they transact with us. They are looking for omnichannel experiences: digital for simple transactions, with the option of face-to-face when they need more assistance. More than 50% of our customer interactions are now digital.

Our customers are also looking for more personalised experiences, particularly with parcel deliveries where they can elect to have their parcel left in a safe location of their choosing if they know they’re not going to be home.

What has Australia Post done to improve its customer experience?

We have four key customer focus areas that we have aligned our teams around: creating seamless experiences across channels; listening to customers and taking action; knowing our customers; and empowering our people.

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Forrester's CX Sydney Forum 2017: Deliver Exceptional Digital Customer Experiences . . . Or Else!

Michael Barnes

We’ve been busy finalizing the agenda and speakers for the forthcoming CX Forum in Sydney on May 9. That’s only eight weeks away!

Our focus this year is on exploring the current and emerging best practices for the design and delivery of exceptional customer experiences in digital channels. To put it more simply, we’re going way beyond the why and what to dig deeper into how.

CX and digital marketing professionals need to accelerate the pace of change, so for 2017 we’re deep-diving into four key themes:

  • The future of digital CX. How can you blend new technologies like bots, artificial intelligence, and digital assistants into your existing digital CX strategies? How do these new tools change customer behavior and expectations? And how will the practice of CX be altered as a result?
  • CX design and delivery. What are the best practices for creating innovative, distinctive customer journeys that cross functions like sales, marketing, and customer service? How can you truly embrace CX as a team sport?
  • Technology stack and strategy. How can CX and IT collaborate to tackle new thinking about CX technology strategy and management? How can these groups work together to drive the digital transformation of their entire organizations?
  • Creating and nurturing a CX-driven culture. How can you deliver sustainable, remarkable experiences? What does it really mean to instill a customer-obsessed culture and what are the hallmarks of a CX-driven organization?
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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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