The Holy Grail of customer experience for many firms goes beyond useful and easy to interactions that create an emotional connection with the customer. That’s not easy to do, but step 1 is creating an experience that is at least enjoyable. Now, before you object . . . I’m not talking Disney-level enjoyable here — just generally pleasant and maybe even a little fun. Two brands that proved it’s possible with high scores on the CXi’s “enjoyable” criteria are:
Thanks for all your thoughtful responses to last week’s post about why companies fail to meet customer needs. Clearly there’s more work to be done in that department, but for now, I want to move on to the next Customer Experience Index (CXi) criteria: “easy.” Many firms claim to be easy to do business with, but which ones got the highest rating from customers?
This year, USAA (bank) and Kohl’s both earned a score of 92% in this category.
For USAA, there is definitely some overlap between its ability to identify latent customer needs and its level of easiness. For example, depositing a check via mobile phone makes the deposit process easier for everyone, not just the most geographically dispersed parts of the customer base. Strong customer understanding also led to creation of the Auto Circle experience, which is designed to make the entire car buying process easier for customers, not just the parts that a financial institution like USAA would typically have been involved in.
I scanned the list of industry high scores and wasn’t surprised to see names like USAA (banks, credit card providers, insurance providers), Apple (consumer electronics manufacturers), and Southwest Airlines. But there were names we don’t hear about as much in customer experience like Morgan Stanley Smith Barney (investment firms), Bright House Networks (ISPs), US Cellular (Wireless service providers), and Dish Network/EchoStar (TV service providers)*.
To me this says that brands trying to differentiate on the basis of customer experience need to look in a variety of places for possible competitive threats and standard-setters, not just the most obvious ones. History is full of examples of small firms that could transform more quickly than their larger competitors or introduce a disruptive innovation that no one saw coming. I expect both those scenarios to play out in customer experience over the next few years. The question is just where and when.
As part of our research in 2012 you can be sure we’re going to look into what these lesser talked about brands are doing to raise the bar in their industries, but in the meantime here are two of my favorite examples of CX innovations that came from places I would have never thought to look:
Since publishing our Customer Experience Index, 2012 last week, we've gotten a flood of questions about the research, methodology, and results. I'm putting the finishing touches on a full Forrester report that answers the ten most common questions but thought I'd give everyone a sneak preview with a blog post summarizing a few of the answers.
1. Who are the people rating the brands in Forrester's Customer Experience Index?
To produce the CXi each year, Forrester conducts an online survey of US individuals ages 18 to 88. This year, there were 7,638 such folks who answered the survey during October 2011. We weighted the data by age, gender, income, broadband adoption, and region to demographically represent the adult US online population. The sample was drawn from members of MarketTools' online panel, and respondents were motivated by receiving points that can be redeemed for a reward.
2. Which touchpoints are consumers rating when they answer the CXi questions?
The short answer to this question is "any touchpoints they used to interact with the brand." We don't direct consumers to think about any specific touchpoints as they rate their interactions. Instead, we want them to consider all of their interactions with that brand over the past 90 days, regardless of how they happened.
Today we published Forrester’s 2012 Customer Experience Index (CXi). It’s our fifth annual benchmark of customer experience quality as judged by the only people whose opinion matters — customers. The CXi is based on research conducted at the end of 2011 and reflects how consumers perceived their experiences with 160 brands across 13 industries to be.
For those new to the index, let me explain how it works. The process has three steps:
We ask more than 7,600 consumers to identify companies they do business with in 13 different industries.
We ask them to tell us how well each firm met their needs, how easy the firm was to work with, and how enjoyable it was to work with. We ask these questions at the brand level to get a sense of their overall experience with the company regardless of channel.
For all three questions, we calculate each firm’s CXi score by subtracting the percentage of its customers who reported a bad experience from the percentage who reported a good experience. The overall CXi is an average of those three results.
Your company’s goals and objectives for customer experience in 2012.
How your organization manages customer experience on a daily basis.
The customer experience categories you plan to funnel budget into for 2012.
Once the survey closes in mid-December, we’ll analyze the data and write a summary report titled “The State Of Customer Experience, 2012.” We’ll send you a copy of that report when it publishes in January — even if you’re not a Forrester client.
Thanks in advance for helping with our research. This data will fuel not only this report but also much of our other research throughout the coming year.
(By the way, this survey is for customer experience professionals who are working to improve customer interactions with their own companies. Agency employees, technology vendors, and consultants should take a pass on this one. There will be surveys for you later in the year.)
(This post was co-authored by Megan Burns and Andrew McInnes so appears on both of their personal blogs.)
Customer experience management (CEM) has become a marketing buzzword for technology vendors as of late. While this isn’t surprising given the current energy around customer experience in general, it is a problem. Here’s why:
Customer experience management is a discipline, not a technology. To truly manage customers’ experiences, an organization must understand its customers’ needs, how it intends to meet those needs, and how it is currently performing. It must also have people, processes, and tools in place to use that insight in order to design and deliver the right experiences and continuously improve them over time. Vendors that currently claim the CEM name (Adobe, Medallia, RightNow, Tealeaf, and others) help clients with various aspects of the management process like experience insight and delivery. But they can’t replace the overall discipline and activities required for a company to get customer experience right.
For the past five years, I’ve been leading Forrester’s research on measuring customer experience. With the recent explosion of interest in customer experience overall and the perennial popularity of metrics as a topic within that space, we’ve decided to expand the team that covers it.
I’ll continue to write reports about general measurement best practices and how to apply them in an enterprise-level experience measurement program. My colleague Adele Sage is adding to that body of work by exploring how the latest experience measurement theory applies in digital channels like Web, mobile, tablets, and whatever new channel they dream up next. And in fact, she just published her first two reports in this research stream:
Earlier this year, I ran a workshop designed to help customer experience professionals get a jumpstart on the process of transforming their organizations to be more customer-centric. We got great feedback from that session, so we've decided to run it again on September 20 at Forrester's brand new headquarters in Cambridge, Massachusetts.
As before, this will be a one-day workshop that starts with an overview of the state of the practice in customer experience today and then takes attendees through our latest research on how to:
Choose the right customer experience strategy for your company.
Build a world-class voice of the customer program.
Generate active executive participation in customer experience programs.
Transform your company culture to be more customer-centric.
I’ll share what’s working inside real companies and lead a series of exercises designed to help attendees benchmark their own firms against best practices. At the end of the day, we'll put it all together into a set of customized, actionable steps designed to jump-start your customer experience program.
This session will be an educational, interactive, and entertaining way to figure out how to start turning your organization into a customer experience powerhouse. For more information and a detailed agenda, please visit the event page for this workshop. I hope to see you in Cambridge!