Customer Experience Predictions For 2014

My colleague John Dalton and I recently published a report outlining our major predictions for customer experience in the coming year. What we envision is perhaps best summed up by the old William Gibson quote: “The future is already here, it’s just not evenly distributed.”

Here’s why: As I wrote in a recent post, roughly half of the attendees at Forrester’s three customer experience forums in 2013 said that their organizations are in the first phase of the path to CX maturity (repair). Their priority is — and for the immediate future will remain — finding and fixing broken experiences.

A much smaller group of companies — no more than 10% — say that their organizations are in the ultimate phase of CX maturity (differentiate). In contrast with companies in the repair phase, they'll build on their past success with well-funded efforts that leverage their skills in strategy, customer understanding, and design.

With that as background, we predict that two major themes will deserve the most attention in the coming year.

Companies in the repair phase will fight to advance along the path to customer experience maturity. Companies just starting to fix their broken experiences will find themselves in a struggle that's hard, slow, and increasingly costly. They'll focus on getting key infrastructure in place to assess what's broken, manage a portfolio of repair projects, and measure the results they need to build enterprisewide support for CX.

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The Path To Customer Experience Differentiation

In a previous post, I wrote about speakers at Forrester’s Forum For Customer Experience Professionals EMEA who represented companies in the repair phase of customer experience (CX) maturity. Their mission: find broken experiences, fix them, and measure the results.

Roughly half of companies on the path to customer experience maturity say that they’re in the repair phase today — and that’s probably a conservative estimate. But there are companies at more advanced stages of CX maturity, including a few in the most advanced phase, differentiate. That’s where firms reframe business challenges in the context of unmet customer needs, connect innovation ideas to their customer experience ecosystem, and infuse innovations with the brand.

We had two speakers at our event who represented companies in the differentiate phase: Dean Marshall, director of Lego brand retail store operations Europe, and Declan Collier, CEO, London City Airport. What is it that their organizations do that’s so different?

Lego stores  goes beyond even the typical design best practices used by companies in less advanced (but still pretty advanced!) phases of CX maturity, practices like ethnographic research and co-creation. How? By combining the two.

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Speakers At Forrester’s Customer Experience Forum EMEA Show That They’re On The Path To Customer Experience Maturity

Last month it was my pleasure to host Forrester’s Forum For Customer Experience Professionals EMEA in London. The theme for the event was “boost your customer experience to the next level,” which we picked because we know that attendees of our events are at widely (sometimes wildly!) different levels of customer experience maturity.

What is “customer experience maturity”? We define it as the extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way. In other words, does the organization apply the same level of business discipline to customer experience as it does to well-established business practices like marketing, logistics, and accounting?

In our study of how companies become mature at the practices in the customer experience discipline, we’ve discovered that successful firms all follow the same path, which passes through four phases:

  • Repair. Companies find broken experiences, fix them, and measure the results.
  • Elevate. Firms start to adopt practices that lead them to deliver sound experiences in the first place.
  • Optimize. Companies become systematic at customer experience practices.
  • Differentiate. Firms reframe business challenges in the context of unmet customer needs, connect innovation ideas to their customer experience ecosystem, and infuse innovations with the brand.
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Q&A With Darren Bentham, Chief Customer Officer, Southern Water

Design is, without a doubt, the sexiest of the six customer experience (CX) disciplines. So when we talk about CX design at Forrester, our favorite example comes from a really sexy industry: water utilities.

That’s right — water utilities. And one in particular: Southern Water, located in the southeast of the UK.

We like the Southern Water example because it shows that CX design is not about what shade of blue your logo should be, and it’s not just for people who wear black turtlenecks. No, CX design is about a repeatable problem-solving process that incorporates the needs of customers, employees, and other business stakeholders.

And that’s why we invited Darren Bentham, chief customer officer at Southern Water, to speak at our SOLD OUT Forum For Customer Experience Professionals EMEA in London on November 19th and 20th. Darren has taken on one of the biggest, toughest CX challenges we know of: installing thousands of water meters for customers who have never had them before, didn’t ask for them, and in many cases don’t want them. And yet, by applying CX design principles, he’s making this a positive experience for all parties involved.

In the run-up to the event, Darren took the time to respond to a series of questions about what he’s been doing to improve customer experience and what advice he’d give to others in his shoes. His answers appear below.

I hope you enjoy his insights, and I look forward to seeing many of you in London on November 19th and 20th!

Q. When did your company first begin focusing on customer experience? Why?

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Forrester’s Customer Experience Forum Is Coming To London November 19th and 20th!

Although it seems like Forrester’s Forum For Customer Experience Professionals West in Los Angeles just happened, we’re now just three weeks away from Forrester's Forum For Customer Experience Professionals EMEA in London.

I can’t tell you how excited I am about how the London event is shaping up.

On second thought, I can tell you. Read on!

This year’s theme is “Boost Your Customer Experience To The Next Level.” What’s that about? Well, we know from our research that companies are at wildly varying levels of customer experience maturity, ranging from not having gotten started yet to pulling even further ahead of competitors through CX differentiation. That’s why we’ve tailored this event to show attendees the one sure path to CX maturity and provide detailed guidance on how to advance along that path.

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Q&A With Declan Collier, CEO, London City Airport

I have to admit that I’m a little intimidated at the thought of sharing a stage with Declan Collier, the CEO of London City Airport, at Forrester’s Forum For Customer Experience Professionals EMEA on November 19th and 20th in London

For one thing, if you’ve ever been to London City Airport, it’s an experience that’s far superior to what you’ll get at bigger and better-known airports that I won’t name.* So even though I like to think that I know a bit about customer experience, Declan clearly has something special going on.

For another thing, Declan is charming. Taken together, that combination of content and presentation is, well, intimidating for your humble forum host.

In the run-up to the event, Declan took the time to write some great detailed answers to our questions about what he’s been doing, how his efforts have evolved, and what advice he’d give to others on the journey to customer experience maturity.

I hope you enjoy his answers, and I look forward to seeing many of you in London on November 19th and 20th!


 

Q. When did London City Airport first begin focusing on customer experience? Why? 

A. London City Airport (LCY) has been focused on customer experience since its doors opened in 1987 — it’s a niche player, serving the travel needs of the business communities of Canary Wharf and the City and the political establishment of Westminster, and our passengers expect a consistent, best-in-class experience.

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Q&A With Jo Moran, Head Of Customer Service, Marks And Spencer

Ever since Forrester began conducting its Customer Experience Index study, retailers have topped all other industries. They not only have the highest average scores (as rated by their own customers), they comprise the majority of the companies in the “excellent” category. In fact, the only other industry that comes close to retailers is hotels.

That’s one reason why we’re delighted to have Jo Moran, head of customer service for iconic retailer Marks and Spencer, speak at our Customer Experience Forum EMEA in London on November 19th and 20th.

The other reason is that Jo has been on a journey to boost Marks and Spencer to a higher level of customer experience maturity — which is exactly what our forum is about.

In the run-up to the event, Jo graciously agreed to answer our questions about what she’s done so far and what she’d do differently if she had it to do over again. Her answers appear below.

I hope you enjoy her responses as much as I did, and I look forward to seeing many of you in London on November 19th and 20th!

Q. When Marks and Spencer (M&S) first begin focusing on customer experience? Why?

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Q&A With Clyde Guinn, President, Days Inn Worldwide, Wyndham Hotel Group

How’s this for a challenge? Imagine you’re the president of one of the largest economy hotel chains in America. Your goal: deliver a consistent, high-quality on-brand customer experience across all of your properties.

Now add in that the brand is more than 40 years old, you have 15 major direct competitors, and the behavior of your customer base is changing rapidly. And oh, yeah, you have to work through franchisees.

If you can imagine all that, then you might have a rough idea of what it’s like to be Clyde Guinn. I love talking to Clyde because he’s both grounded in the traditional hotel business and on top of how that business is rapidly changing. In the run-up to Forrester’s Forum For Customer Experience Professionals West in Los Angeles on October 9th and 10th, Clyde was kind enough to answer some questions that we posed to him.

I hope you enjoy his responses as much as I do, and I look forward to seeing many of you in Los Angeles!

Q: When did your company first begin focusing on customer experience? Why?

A: As a hospitality company, customer service is something that we, as well as our industry in general, have always focused on to some degree. It’s a vital part of ensuring success. I think what’s changed, or perhaps evolved, is how we measure the customer experience. 

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Q&A With Tony Ezell, Vice President, Chief Customer Officer, Eli Lilly And Company

Interest in customer experience at pharmaceutical companies has shot up in the past few years. This came home to me more than a year ago at our 2012 Forum For Customer Experience Professionals East, where every meeting I took was with one or more decision-makers at pharma companies.

That’s one reason why I’m so excited that Tony Ezell, the chief customer officer at Eli Lilly, will be speaking at Forrester’s Forum For Customer Experience Professionals West in Los Angeles on October 9th and 10th (he’ll be on the first day, right after the opening Forrester keynote by Megan Burns).

But there’s another reason why I’m looking forward to Tony’s speech. In talking to him during the run-up to our event, I’ve gotten a good look at what he’s doing and why it matters to so many people. Because let’s face it: The prescription drugs we take go right to the most important experience in most of our lives — our health.  

Why does customer experience matter to a life-sciences company like Lilly, and what is it doing to make it better? We recently put some of these questions to Tony, and you can read his answers below. I hope you enjoy them and that I get to see you in Los Angeles where we can all hear Tony in person.

Q. When did your company first begin focusing on customer experience? Why?

A. Lilly’s focus on customer experience actually can be traced back to the company’s beginning in 1876 when Colonel Eli Lilly went against the trend of the time and focused on developing products of the highest quality to provide the best experience for his customers.

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Q&A with Harit Talwar, President, US Cards, Discover Financial Services

We all felt extremely lucky to score Harit Talwar as a speaker for Forrester's Forum For Customer Experience Professionals West, which is coming up on October 9th and 10th in Los Angeles. Why lucky? It’s for two main reasons.

First, Discover has been a consistently strong performer in our Customer Experience Index, in a virtual dead heat with American Express. Yet Discover’s customer experience story is not nearly as well known as the American Express story, so we’ve been dying to bring it to a Forrester stage.

Second, Harit blew me away in our first forum prep call. Not only does he really get the concept of a customer experience journey, but also he’s been living it. What’s more, he brings results in terms of metrics like customer loyalty scores, wallet share, and J.D. Power scores as proof that what Discover has been doing actually works.

In the run-up to the forum, Harit recently took the time to answer questions about what Discover is doing and why it's doing it. It’s my pleasure to be able to share his answers with you, and I hope to see you in Los Angeles where we’ll all get to meet Harit in person.

Q. When did your company first begin focusing on customer experience? Why? 

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