The Business Impact Of An Outside-In Perspective At Sprint

Harley Manning

Sometimes a CEO takes the reins at a company that’s in such great shape, I can’t help thinking, “Wow, it must be great to be that guy!”

And then there’s Dan Hesse, CEO at Sprint. Given the shape that Sprint was in when he got the top job in 2008, I was thinking more along the lines of, “Wow, he must be working off a karmic burden!” That’s because back then, the company had the lowest customer satisfaction ratings of any of the major wireless carriers. As a result, it was bleeding cash from high customer care costs and lost subscribers.

Faced with this mess, Dan decided to focus on systematically improving the quality of Sprint’s customer experience as a way of improving Sprint’s bottom line. We were so impressed by his efforts that we included a case study about Dan in Chapter 2 of our upcoming book, Outside In: The Power Of Putting Customers At The Center Of Your Business.

The book won’t be out until August 28th, but you don’t have to wait until then to get a sense of how effective Dan’s efforts have been. That’s because on May 15th, Hesse gave an address at Sprint’s shareholder meeting, and he had this news:

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Rx: Four Days Of Inspiration At The Cleveland Clinic Patient Experience Summit

Harley Manning

Earlier this week, I had the privilege of speaking at the Patient Experience Empathy And Innovation Summit. The event was sponsored by the Cleveland Clinic Office of Patient Experience, which is led by Dr. Jim Merlino, the chief experience officer at the Clinic.

To be candid, I originally agreed to give the speech as a favor to Jim, whose inspirational story kicks off the chapter on chief customer officers in our upcoming book. I didn’t know what to expect of the event and somehow imagined that when I joined hundreds of doctors, nurses, and other caregivers in a big auditorium, I’d get trapped inside an episode of House — and I’d be the only one who didn’t know what the other cast members were talking about.

Was I ever wrong. The event was an extraordinary experience from beginning to end, and the content was accessible to anyone who works to improve customer experience, regardless of industry. As someone who helps put on Forrester's Customer Experience Forum, I even got a little envious.

A few things leapt out at me from the sessions I attended:

  • Executive-level commitment to customer experience as a business strategy. Dr. Delos “Toby” Cosgrove, CEO of Cleveland Clinic, and Dr. Kurt Newman, CEO of Children’s National Medical Center, appeared together on a panel. It was clear from their answers to moderator and audience questions that both of them connect the dots between high-quality patient experience and the bottom line.
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Outside In: The Power Of Putting Customers At The Center Of Your Business

Kerry Bodine

Customer experience is, quite simply, how your customers perceive their interactions with your company. In Forrester’s soon-to-publish book, Outside In, Harley Manning and I show that customer experience is a fundamental business driver and — in an age when customers have access to vast amounts of data about your company and its competitors — it’s also the only sustainable source of competitive advantage.

In most industries, customer experience is the greatest untapped source of decreased costs. Fidelity Investments recently spent a modest $20,000 to fix a problem that made it difficult for customers to log into their accounts through the company’s automated phone system. This single fix saves Fidelity $4 million a year by averting calls to customer service. And it’s just one of more than 160 projects that came through Fidelity’s experience improvement system in 2011. Together those projects account for more than $24 million in annual savings.

Customer experience also drives increased revenue. Several years ago, B2B technology reseller and service provider CDW added a question to the customer survey it fields: “What additional things would you like to talk to your sales team about?” The company funneled the answers to this new question to the appropriate account managers. The account managers, in turn, closed the loop by getting back to the customers with a simple message: You told us that you have a need, we’d like to offer you something that could meet that need. And guess what? Customers took the CDW sales reps up on it. This seemingly simple innovation drove more than $200 million in incremental revenue in just one year.

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Announcing Outside In, The Latest Book From Forrester And The Topic Of Our Upcoming Forum In New York

Harley Manning

Since October, I've been heads down on a big project. We're all delighted that the project is now at a point where we can talk about it publicly.

It's Forrester's next book, titled Outside In: The Power of Putting Customers at the Center of Your Business. You'll be hearing a lot about it in the coming weeks, both from me and from my co-author Kerry Bodine. And if you want to see what the cover looks like, it's already online here and here.

Although the book won't be available to the general public until August 28th, attendees of our Customer Experience Forum at the end of June will get digital copies of the manuscript.  They'll also hear keynote speeches from some of the people who appear in the book, like Kevin Peters, the president of Office Depot North America; Laura Evans, chief experience officer at The Washington Post; and Laurie Tucker, senior vice president of corporate marketing at FedEx.

If you'd like to get a preview of some of the concepts in the book, check out the video below — and then stay tuned for more announcements!


Boom! Wow, Wow, Wow, BOOM!! Does Your Customer Experience Have A Dramatic Arc?

Kerry Bodine

Think about your favorite action movie. Raiders Of The Lost Ark. The Matrix. Any James Bond flick. What do they have in common? A storyline that goes something like this: In the first few minutes, you’re drawn into a short chase or adventure — something that immediately gets your heart pounding. It builds up quickly and then resolves with a big boom! You’re hooked. And at that point, the main narrative begins. Over the course of the next 90 minutes or so, the storyline twists and turns as the main characters fight off bands of aliens, spies, mummies, and the like. The action crescendos with a series of increasingly exciting events that make you say, “Wow . . . wow. . . WOW!” as you scoot to the edge of your seat. Finally the action-packed finale delivers one last thrilling and explosive BOOM!! As a movie-goer, you’re left breathless.

You’ve no doubt experienced this type of storytelling countless times. And if you paid attention in literature or drama class, you might recognize this narrative structure as a classic dramatic arc dating back to Aristotle. But I bet you haven’t thought about it in the context of your company’s customer experience. Or, at least I hadn’t — not until I attended the Service Design Network conference last fall and attended a workshop led by Adam Lawrence of Work•Play•Experience, a design firm that helps companies design customer experiences using theatrical methods.

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Voice Of The Customer Awards 2012 — Deadline Extended To Friday, April 6th!

Adele Sage

Good news for those of you requesting extensions: We heard you, and we're extending the deadline for Forrester's Voice Of The Customer Award submissions to Friday, April 6th at 5:00 p.m. ET.

While I have you, here are answers to some of the questions I've been getting about the awards:

  • I'm a vendor. Can I still apply? Yes — but only if your submission is about your own VoC program. We don't accept submissions from vendors on behalf of their clients.
  • Does my company have to be headquartered in North America? No! This year we've gone global! We'll accept any submission, as long as it's written in English.
  • Will you honor confidentiality? Yes! No matter what, we'll publish the names of the 10 finalists and three winners. But any specifics that we want to publish beyond that, we'll fact-check with you first.
  • Do I have to be a Forrester client? No! We'd love to hear from you whether you're a client or not.
  • Does the cover page count toward the page limit? No, we're only asking you to limit the content of the submission to seven pages.
  • Can I get an extension? You already did! And no, we won't be offering any extensions beyond Friday, April 6th.

Get more details on the Forrester VOC Awards on our site.

Good luck!

Interactive Design Agencies In Europe — Please Report Your Capabilities In Forrester's 2012 Online Survey

Jonathan Browne

Once again, I'm going to write an overview of the European interactive design agency market to help Forrester clients identify design agencies to help them with their projects in Europe. The report title will be "2012: Where To Get Help For Interactive Design Projects In Europe." Participants will receive a copy of the research and their details will be included in the report.

I would like to invite interactive design agencies in Europe to participate. Please complete the agency survey at the following location:

The survey is designed to gather data from European firms that have significant experience in designing and developing digital experiences (web, mobile, etc.). Survey questions cover interactive agency size, practice areas, industry expertise, locations, and a range of costs for typical engagements. If you know any agencies that should be included in my report, please forward the survey link to them or show them this blog post.

Thank you!

P.S. If you want a preview of the survey, you can see all the questions on the following site:


UPDATE (10/May/2012): Survey deadline extension. This survey will be open until 15/May.


Lessons Learned From 1,500 Website User Experience Reviews

Adele Sage

After more than 12 years of evaluating website user experience, Forrester reached a major milestone — completing 1,500 Website User Experience Reviews. That's more than 100 reviews per year or more than 10 per month. Whew! We've been busy.

These reviews (using an expert/scenario/heuristic review methodology) span B2C and B2B sites, intranets, and employee portals across many industries and countries. What we do: We identify target users and attempt to accomplish realistic user goals for those users, and then we evaluate the experience on a set of 25 criteria graded across possible scores of -2 (severe failure), -1 (fail), +1 (pass), or +2 (best practice) for each criterion.

So what did we find?

  • Many poor experiences. Since scores for each of the 25 criteria range from a -2 to +2, total scores could range from -50 to +50, and passing all tests would result in a grade of +25 or higher. But the average score across all of our reviews was only +1.1, and only 3% of the sites earned a passing score (that's a total of 45 sites out of the 1,500. Yes, you read that right: 45).
  • Fluctuations in scores over time. The average score rises and falls when we look across versions of the methodology and over time. But, finally, in the latest version, there was a significant increase in the average score over the years just prior — a trend we hope to see continue. There's a similar pattern when we compare B2C and B2B sites. B2B sites have consistently lagged behind B2C sites in user experience scores, but we're finally seeing that gap narrow.
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Forrester’s Voice Of The Customer Awards 2012 — Nomination Period Begins March 5th

Adele Sage

It’s that time of year again. We’re already in the midst of planning our annual Customer Experience Forum, and now we’re gearing up to collect and evaluate nominations for our Voice Of The Customer Awards — which we’ll present at the Forum.

If you’re new to the awards, here’s some background: Forrester's annual Voice Of The Customer Awards recognize organizations that excel in collecting, analyzing, and acting on feedback from their customers, incorporating customer insights into everyday decisions. We conduct the awards for three basic reasons: 1) to emphasize the importance of voice of the customer (VoC) programs; 2) to celebrate organizations that are leading the way; and 3) to highlight best practices.

If you (or, if you’re a vendor, your clients) have a strong VoC program, we encourage you to participate. It's free and it offers a great opportunity to earn some solid PR while sharing your wisdom with other customer experience pros. Also, we only reveal the names of the finalists and winners, so the potential downside is limited.  

You can find all of the information you need on our VoC Award home page. The 2012 nomination form will become available there on March 5th. In the meantime, you can review this year's timeline, get answers to FAQs, and check out information about past winners.

Improve, Transform, Or Sustain: What’s Your Path To A Better Customer Experience?

Kerry Bodine

If you’re reading this post, there’s probably at least one person in your company (you) who’s already working to improve your customer experience in some way.  That means your company’s CX efforts fall somewhere on the curve below.

Improve:  This is where most companies start their customer experience initiatives.  Typically, a small group implements a voice of the customer program, prioritizes customer feedback, and routes it to different parts of the organization so that they can make changes.  Some employees might adopt new customer-focused work practices, but these efforts remain ad-hoc or siloed.  The net result is incremental customer experience improvements.

Transform:  At a certain point, some companies decide that they want to leverage customer experience in order to create a jump in customer loyalty, accelerate growth, and differentiate themselves from competitors.  When that happens, incremental customer experience improvements are no longer sufficient.  The company begins to change just about every part of the business — including processes, policies, technologies, and incentives — to focus on the needs of customers.

Sustain: For companies that decide to take the path towards transformation, this is the end goal.  Once a company puts customers at the center of all business operations, employees need to figure out how to sustain the new ways of working so that they can continue to deliver a great customer experience indefinitely.

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