Customer Experience Defined

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.”

Read more

iPhone Versus Droid: A Personal Perspective

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.

Read more

Ease Of Use Is Now “A Federal Case” For Mortgage Paperwork

When I was kid, when we thought someone was overreacting, we used to say “don’t make a Federal case out of it!” Maybe people still say this, but I haven’t heard it in a while. I suspect that it went into the Museum of Way-Historical Sayings. Still, I’m sure you get the idea: If the Federal Government is involved, it’s a big deal.

I thought of this expression this morning when I read an article in The Wall Street Journal. There is quite a battle going on over an attempt to make mortgage-disclosure documents easier to understand. On the one side, we find our Federal Government in the persons of Elizabeth Warren and Treasury Secretary Timothy Geithner. On the other side, you find the mortgage industry (or at least a big chunk of it — the article could have offered some more details IMHO).

Now if you’ve ever taken out a mortgage, you know that the documentation you received was close to the polar opposite of “easy to understand.” You may have thought (as I did) that the difficulty stemmed from a failed attempt by lawyers and bankers to communicate effectively. But apparently not! (Or at least that’s not the only reason — I’m pretty sure that most lawyers don’t have John Grisham potential).

Read more

Live Streaming From Forrester Customer Experience Forum 2010 — Day Two

It’s Day 2 of Forrester’s Customer Experience Forum 2010, and I'm incredibly excited to see this morning’s opening speech by our own James McQuivey. He's going to demo Microsoft’s new interface that uses gestures and natural language commands with help from the company that built it, PrimeSense. You may have heard of this as Project Natal or Kinect — but hearing about it does not do the trick. You have to see it and then hear James’ take on what it means for e-tailers, financial planners, media companies . . . wow. Forgive me if I seem a little blown away, but I’ve been watching the rehearsals, and all I can say is that I have to have one of these! Check back throughout the day for more about this speech and others.

Today's Live Stream

8:30-8:35 a.m.
Day 2 Opening Remarks
Harley Manning
, Vice President, Research Director, Forrester

8:35-8:45 a.m.
What Our Ethnographic Research Tells Us About . . . You!

Victoria Bough
, Vice President, Practice Leader — Customer Experience & Customer Intelligence, Forrester

8:45-9:30 a.m.
How Radical New Interfaces Will Transform Consumer Product Experiences

James McQuivey, Ph.D.
, Vice President, Principal Analyst, Forrester

Sponsored by RightNow

Live Streaming From Forrester Customer Experience Forum 2010 — Day One

Welcome to all of you at Forrester’s second annual Customer Experience Forum in New York City! And to all of you who can’t be here — we’ll miss you. Sales for the event were so far beyond our goals and expectations that we are flat out amazed. There are about 900 people here from many industries, especially financial services. Attendees come from many professional roles: We’re seeing a good mix of people who work in marketing, eBusiness, customer intelligence, and customer experience (of course), including a strong contingent of senior managers and executives. So please keep checking in here for the latest updates and discussions around our theme of customer experience breakthroughs!

Today's Live Stream

8:30-8:50 a.m.
Welcome And Setting The Stage 
Harley Manning
, Vice President, Research Director, Forrester

8:50-9:35 a.m.
Engage Online Customers With Emotional Experience Design

Ron Rogowski
, Principal Analyst, Forrester

Sponsored by Rightnow

Entries For Forrester's Voice Of The Customer Awards 2010 — Wow!

We just finished judging the entries for Forrester's Voice of the Customer Awards 2010. Announcing the winners will have to wait until we’re onstage at the Customer Experience Forum in New York on June 29. But there is something I want to announce right now: I am really impressed by the entries! :-)

Because I was also a judge last year, I couldn’t help but notice some big changes from last year. Here they are in no particular order:

Read more

CEO As Chief Customer Officer

In preparation for our upcoming Customer Experience Forum in New York at the end of June, I’ve been having phone discussions with our speakers and their people. Yesterday Robinette Dixon from Sprint pointed out something I hadn’t quite realized. Two of the companies that are speaking have a lot in common despite the fact that they could hardly be in more different industries.

First there’s Sprint. Dan Hesse took over as CEO of Sprint, which is headquartered in Kansas, in December of 2007.  He immediately made customer experience a priority and set out to ingrain customer experience into the company’s culture and processes. You can see evidence of the results in the 15 percentage point rise Sprint made this year in our Customer Experience Index.

Then there’s H&R Block. Our Day Two speaker, Sabrina Wiewel, is Chief Tax Network Officer at that company, which is also based in Kansas. But the bigger coincidence (no, this isn’t a post about Kansas) is that H&R Block also got a new CEO recently: Russ Smyth, who took over in August of 2008. Like Hesse, Smyth made customer experience a priority. Among other changes he literally flipped the corporate org chart upside down to put customers at the top, and re-engineered how the field offices interact with customers.

Read more

US Banks And Canadian Banks Under The Web Site User Experience Review Microscope

I’m quite pleased to announce that we just published two reports that grade the user experience at major US banks and major Canadian banks, respectively.  What makes these reports special is that our colleagues who serve the eBusiness role published their own complementary reports on the same day. You can see their US report here and their Canadian report here.

Here’s some background: For several years Forrester has published annual reports that ranked public-facing bank sites from the perspective of an eBusiness professional. This year our customer experience research team collaborated with our eBusiness research team to create our own grading reports tailored to the unique needs of customer experience professionals. The result is a stereoscopic view of 12 banks (six in each country) from the different perspectives of two professional roles that work closely together in real life.

The reports from the customer experience team dive deep into user experience issues. They grade how well customers can accomplish their goals on bank sites. The reports from the eBusiness team summarize some of these findings and add in a competitive benchmark of bank content and functionality.

Read more

CxPi vs. Stock Performance

We recently posted the results of a Watermark Consulting study that showed a correlation between Forrester’s Customer Experience Index (CxPi) rankings and stock market performance.

We asked our researcher Andrew McInnes to run the numbers again and see whether they held up to close scrutiny. Here’s what he did:

  • Reviewed the 2007 CxPi rankings.
  • Identified the 10 highest-ranked public companies (CXP Leaders) and the 10 lowest-ranked public companies (CXP Laggards). 
  • Calculated the average annual total returns of the Leader group and the Laggard group
  • Compared the results for each group to the  S&P 500 index for years 2007 – 2009.


Andrew’s  analysis confirmed Watermark’s findings: The customer experience leaders consistently outperformed the other two groups; the customer experience laggards consistently fell short.

Does this prove that good customer experience leads to good stock performance (or that the CxPi picks hot stocks)? No. Stock performance relies on many factors, including human irrationality.

However, the correlation does highlight a relationship we all intuitively understand: Companies that treat their customers well perform better than companies that don’t.  (And it sure looks like treating your customers poorly is a very bad idea, especially in an economic downturn.)

Read more

Categories:

What do you think of our new blogging platform?

As of 3/10 our new blogging platform is live. It offers many advantages over our older platform including our new "Recommend This Post" functionality.

But I'm not posting in order to sell it to you. I'm lots more interested in hearing what you think! Is it an improvement, more or less the same, or a step backwards? Let us know by clicking the "Add A New Comment" link below.