Help Forrester Predict The Top 2011 Customer Experience Trends!

Kerry Bodine

Our team is pretty floored by everything that’s happening in the customer experience space right now. We’re seeing massive changes in technology, which are enabling personal and social experiences unlike any we’ve ever seen. In addition, customer experience is gaining unprecedented importance across the enterprise. We think the combination of these influences is going to make for a pretty spectacular 2011.

Ron Rogowski and I are collaborating on a report that will outline Forrester’s thoughts on what 2011 has in store for customer experience professionals. Among our predictions:

  • Customer experience will (finally) connect with marketing. If you read my last blog post, it’ll be no surprise that I think there’s a pretty strong connection between customer experience and marketing. For CCOs and CMOs, 2011 will come in like a lion (with tension between their two groups) and go out like a lamb (with true collaboration).
  • Brands will (wrongfully) rush to abandon their Web sites. With the skyrocketing market for mobile phones and tablets, firms will look to engage users through differentiated experiences on these devices. But in the process, many will neglect a critical touchpoint — the Web — in favor of apps that have less reach.
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Customer Experience Improvements Can Be Worth Billions — Yeah, “Billions” With A “B”

Harley Manning

Forrester just published Megan Burns’ new report that models the business impact of an improved customer experience. I’m proud of this report because it:

  • Quantifies the correlation between a rise in a company’s Customer Experience Index score and the corresponding increase in three loyalty metrics that every company cares about: purchase intent, likelihood to switch business to a competitor, and likelihood to recommend.
  • Makes conservative but realistic assumptions about the business fundamentals of companies in 13 different industries.
  • Produces eyepopping projections of increased annual revenue as a result of realistically attainable improvements in customer experience — by industry.
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Customer Experience Defined

Harley Manning

If you’re reading this post, you’re someone who cares about customer experience. You might even be one of the professionals who works in the field of customer experience full-time.

So I’m going to go out on a limb here and guess that you occasionally get the question, “What is ‘customer experience?’”

Now maybe when you’re asked that question, it isn’t phrased so directly (or politely). For example, I get asked, “Isn’t customer experience just marketing?” And, “How is customer experience different from customer service?” But the bottom line is that people are looking for a definition that’s crisp, useful, and distinct from the definitions of other things that companies do. They are right and reasonable to ask for this — but collectively those of us who work to improve customer experience have failed to answer them.

I mean no offense to the many people out there who have tried to define “customer experience.” I’ve read many of the attempts that are out there, and the ones I’ve seen tend to be longer and more convoluted than necessary.

Not that customer experience is an easy concept to define. The customer experience team at Forrester has been debating the definition of customer experience for a while now, and it took us until recently to reach consensus. We now define customer experience as:

“How customers perceive their interactions with your company.”

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Customer Experience And Marketing: Can’t We All Just Get Along?

Kerry Bodine

In my last post, I promised I might have a thing or two to say about marketing. I just didn’t realize it would be so soon!

Last week, Peter Merholz from Adaptive Path posted a rant entitled, "The Pernicious Effects of Advertising and Marketing Agencies Trying To Deliver User Experience Design." In it, he calls ad agencies unethical, poisonous, and “soulless holes” and extols the virtues of user experience (UX) design firms. (Go have a read — you don’t see polarizing tirades like this every day.)

On the surface, this argument pits agency against agency. But I think the issue goes much deeper: the growing intersection — and tension — between customer experience and marketing. Here’s how I see the landscape:

  • Neither customer experience nor marketing are going away. Customer experience is gaining importance in companies — we can see this in the rise of the chief customer officer (CCO) role, which several years ago was virtually nonexistent. But the rise of one discipline doesn’t mean the complete and utter downfall of the other. Even companies like Apple and Zappos — the poster children for great customer experiences — advertise.
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Suits On The Floor, Call Center Disconnect, And Boarding Idiots

Paul Hagen

Most companies have the intention of providing excellent customer experiences. However, most find it difficult to translate those intentions into the cultural fabric of their companies. I like to give companies feedback on how they’re doing — and to see how customer service people deal with feedback. Three recent incidents with employees made me question how well these firms were making this translation:

  • Suits sitting on the floor. Finding an available electrical outlet in O’Hare Airport is a hassle. While looking, I couldn’t help but notice the number of United Airlines customers sitting on the floor, because the outlets in the main thoroughfare were the only ones available . . . some of those people were even in suits. One would imagine that an employee in a truly customer-centric company would be mortified by seeing their customers sitting on the floor like that. When I approached the United Airlines customer service employee to pass a message on to her superiors about it, instead of seeing the problem, she merely gave me a litany of reasons why it wasn’t United’s issue.
     
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Top 10 Web Design Fixes For Improving Business Results Workshop (December 7th, San Francisco, CA)

Ronald Rogowski

Even the best Web sites have usability flaws that stop customers from buying products or services, finding information, and getting help. Yet many of these problems are easy to find and not much harder to fix — if you know what to look for. And the benefits of fixing these common usability problems can be huge.

If you are looking for a fast, objective way to spot the common — but serious — design problems that hurt online business performance, please join me in San Francisco on Tuesday, December 7th, for Forrester’s Top 10 Web Design Fixes For Improving Business Results Workshop.

This one-day intensive session helps participants uncover 10 Web design problems that afflict more than half of the 1,200+ sites tested by Forrester, are easy to spot, and produce ROI when fixed. During this Workshop, participants will learn and apply the same objective techniques Forrester analysts use to find well-known usability problems for research and for clients. These methods apply to any type of site, including B2C or B2B Web sites, extranets, and intranets.

This promises to be an educational, interactive, and entertaining way to learn the tools that will help you find and fix problems that frustrate your customers and limit your business performance. For more information, and a detailed agenda, please visit the event page.

How Zappos Brought Me Back To Forrester

Kerry Bodine

In 2008, after nearly four years as an analyst on Forrester’s Customer Experience team, I left to explore the world of the Mad Men. I led the interaction design team at a top-20 advertising agency in Boston and, after a move to San Francisco, advised marketing agencies on things like their corporate strategies and go-to-marketing messaging.

While it was an exciting time for me, I kept coming back to a belief that I’ve held for years: A great customer experience is truly the best marketing.

And then I read Tony Hsieh’s Delivering Happiness, the story of Zappos’ rise to one of the best-known (and, some could argue, most successful) customer-centric companies. I devoured the entire book, cover to cover, on a flight from JFK to SFO. I dog-eared pages and highlighted passages. I even ignored a really great in-flight episode of 30 Rock in order to keep reading. And as we pulled into the gate in San Francisco, I realized that I needed to return to my passion: customer experience. Ultimately, what really makes me happy is helping companies make their customers happy.

And so here I am. (Thanks, Tony!)

I’m thrilled to be back on Harley’s team and doing a job I love. Here are the types of things I’ll be exploring through my research:

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Brand-Building Web Site Best Practices From 2010

Ronald Rogowski

During 2010, my colleagues on the Customer Experience team at Forrester and I evaluated the Brand Experience at the Web sites of 14 companies across three industries (and wrote individual reports for each industry). Specifically, we reviewed five auto manufacturers (Chevrolet, Ford, Honda, Nissan, and Toyota), four hotels (Crowne Plaza, Hilton, Marriott, and Sheraton), and five skin care brands (Dove, L’Oreal Paris, Neutrogena, Nivea, and Olay). We’ve summarized our findings in my latest report, “The Best Of Web Site Brand Experiences 2010.”

Using our Web Site Brand Experience Review methodology, we set out to test 1) how well the sites supported their key brand attributes in a manner consistent with other channels (Brand Image), and 2) how well the site supported user goals (Brand Action). While none of the 14 sites Forrester reviewed with our Web Site Brand Experience Review methodology passed both dimensions of our tests (Brand Image and Brand Action), there were some good practices that companies across industries can learn from.

Results of Web Site Brand Reivews of 14 Sites Across Three Industries

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Strategy Should Guide Learning From Voice Of The Customer Programs

Paul Hagen

Listening to customers through a well-established voice of the customer (VOC) program is critical. However, without a customer experience strategy rooted in a company strategy, it’s easy for a firm to lose track of its core value proposition to key target customers.

Don Norman tells a wonderful story about a conversation he had with Southwest Airlines chairman Herbert Kelleher that speaks directly to my latest report on customer experience strategy:

"Use Southwest Airlines as the model. When customers demanded reserved seating, inter-line baggage transfer, and food service, they refused (and only now, are reluctantly providing semi-reserved seating). Why? It is not because they ignore their customers. On the contrary, it is because they understood that their customers had a much more critical need. Southwest realized that what the customers really wanted was low fares and on-time service, and these other things would have interfered with those goals.

 I once had a lively, entertaining dinner with Herbert Kelleher, Chairman and co-founder of Southwest Airlines. I asked him why they had ignored the requests of their customers. Herb looked me up and down sternly, sighed, took another sip of his drink, uttered a few obscenities, and patiently explained. His marketing people asked the wrong question. They should have asked, would you pay $100 more for inter-airline baggage transfers? $50 more for reserved seating? No, the customers wouldn't have. They valued on-time, low-cost flights, and that is what Southwest delivers.

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iPhone Versus Droid: A Personal Perspective

Harley Manning

I’ve been meaning to write about this topic for a while. What got me past the tipping point was receiving yet another in the series of hilarious videos in the iPhone versus Evo wars. (I love those, no matter which side they come down on.)

Let me first disclaim that I do not cover mobile devices for Forrester so I am speaking strictly as an end user. Okay, I have disclaimed! Now for the story . . .

Way back in the spring, I was visiting my sister and brother-in-law in Ohio. My sister had recently gotten herself a Droid and was not very happy with it. She let me play with it for a while, and I have to say that I did not like its weight, the sharp corners, and the little vibratory “thunk” of physical feedback that probably seemed like a good idea to the designers but came off as annoying after about the third time it happened. The GUI was okay but didn’t strike me as an improvement over my iPhone — in fact, I thought it was a little worse.

My sister had come to similar conclusions. She had purchased the phone so she could stay with Verizon as her wireless service provider. Her biggest complaint, though, was the lack of a decent app store. And when I say “decent,” I mean that literally. When she called up her app store, she got a really bad interface that didn’t help her find relevant apps without a struggle. Worse, about every third listing was a porno app. (I guess that’s what happens when you don’t curate content.)

Anyway, she regretted her choice but felt locked in by her contract.

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