The State Of Customer Experience, 2010

  • Published on
    13-Sep-2014

  • View
    1.718

  • Download
    0

Embed Size (px)

DESCRIPTION

Lots Of Action, Especially In Companies With Customer Experience Leaders

Transcript

  • Making Leaders Successful Every Day

    February 19, 2010

    The State Of Customer Experience, 2010by Bruce D. Temkinfor Customer Experience Professionals

  • 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

    For Customer Experience Professionals

    ExECuTivE SummaryWe surveyed 141 executives from large North American firms to find out about their customer experience endeavors. It turns out that 90% of respondents think that customer experience is very important for their companies and 80% are trying to use it as an area of differentiation. While the lack of funding was the top problem last year, the lack of a clear strategy has emerged as this years No. 1 obstacle. Theres a lot of activity underway: 62% of companies have a voice of the customer (VoC) program, and nearly half have an executive in charge of their overall customer experience efforts. Our data shows that companies with this type of leadership have fewer obstacles and are more mature in their customer experience efforts.

    TaBlE OF COnTEnTSCustomer Experience Is Active In 2010

    Customer Experience Leadership Makes A Difference

    rECOmmEnDaTiOnS

    Get The Entire Company Thinking Outside-In

    Supplemental Material

    nOTES & rESOurCESin Q4 2009, Forrester surveyed 141 decision-makers from north american companies with annual revenues of $500 million or more.

    Related Research DocumentsThe Customer Experience index, 2010January 11, 2010

    The State Of Customer Experience, 2009april 24, 2009

    Obstacles To Customer Experience Success, 2009 February 20, 2009

    February 19, 2010

    The State Of Customer Experience, 2010lots Of action, Especially in Companies With Customer Experience leadersby Bruce D. Temkinwith William Chu and rachel Zinser

    2

    10

    16

    16

  • 2010, Forrester research, inc. reproduction ProhibitedFebruary 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    2

    CuSTOMER ExpERIEnCE IS ACTIvE In 2010

    To understand what companies are up to in their customer experience endeavors, we surveyed 141 executives from large North American firms. Their feedback highlighted that:

    Customer experience is critical. When we asked respondents how important customer experience was to their 2010 plans, 90% told us that it was very important or critical (see Figure 1-1). But firms arent aiming to just keep up with their peers: 80% of the firms want to use customer experience as a form of differentiation (see Figure 1-2).

    Most companies have some customer experience discipline. Nearly two-thirds of respondents say that their companies have a disciplined approach to customer experience management although only 11% see their efforts as being very disciplined (see Figure 2).

    Theres a lot of effort underway. We asked about the customer experience activities that companies are working on. More than six out of 10 companies have a voice of the customer program and use a single set of customer feedback scores (see Figure 3). Nearly half of the respondents have an executive in charge of their cross-channel customer experience efforts.

    Missing strategy has replaced funding as the key problem. About half of the respondents identified three areas as key issues to their customer experience efforts: lack of a strategy, lack of processes, and lack of cooperation across the organization (see Figure 4). When we compared the problems from last year, funding has become less of an issue while the lack of a strategy has become a bigger concern (see Figure 5).1

    Firms need more customer experience maturity. We asked the executives whether they agreed with 12 statements that represent key competencies for Experience-Based Differentiation (EBD). Only three items got the nod from a majority of respondents (see Figure 6). Unfortunately, less than one-third of these companies have employees who share a common view of the customer, make decisions that take the customer into consideration, and reward employees for improving customer experience.

    Brands are getting more of the attention they deserve. We compared the results from our competency evaluations between Q4 2009 and Q4 2008 (see Figure 7). The two areas with the largest improvements both had to do with brands: employees fully understanding the brand attributes and infusing the brand in customer experience design.

    All interactions fail to deliver, especially online. Our 2010 Customer Experience Index (CxPi) shows that customers arent being treated well (see Figure 8).2 But how do these executives think their companies are doing? Not so well either. For five of the nine interactions that we asked them to rate, less than half of the respondents thought they satisfied customers at least 75% of the time (see Figure 9). The online channel received the lowest marks, especially when it came to customer service.

  • 2010, Forrester research, inc. reproduction Prohibited February 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    3

    Figure 1 Customer Experience is Critical

    Source: Forrester Research, Inc.56316

    Base: 141 North American companies with annual revenues of $500 million or more

    Not at all important (1)

    (2)

    (3)

    (4)

    Critical (5) 62%

    28%

    7%

    2%

    0%

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more

    Stay slightly behind themainstream in our industry

    Stay in the mainstreamin our industry

    Keep from falling too far behindleaders in our industry

    Maintain parity with otherleaders in our industry

    Dierentiate ourselves fromcompetitors in our industry

    Dierentiate ourselves from allrms across any industry 13%

    67%

    13%

    4%

    3%

    0%

    80% want todierentiate withcustomer experience.

    How important will customer experience be in your companys strategy in 2010? 1-1

    How would you describe your executive teams goal for customer experience?1-2

    90% think it isvery importantor critical.

  • 2010, Forrester research, inc. reproduction ProhibitedFebruary 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    4

    Figure 2 most Companies Have Some Customer Experience Discipline

    Source: Forrester Research, Inc. 56316

    How would you describe your companys overall approach to customer experience management?

    Very undisciplined

    Somewhat undisciplined

    Somewhat disciplined

    Very disciplined

    64% have a disciplinedapproach to customerexperience.

    11%

    53%

    25%

    11%

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more

    Figure 3 Customer Experience activity is underway

    Source: Forrester Research, Inc. 56316

    To what extent has your company put in place the following items?

    Been doing for sixmonths or more

    Been doing for lessthan six months

    Not doing but activelyconsidering

    Not doing Dont know

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more(percentages may not total 100 because of rounding)

    52% 10% 14% 16% 8%

    35% 18% 17% 23% 7%

    36% 13% 11% 33% 7%

    53% 10% 19% 10% 8%

    53% already have this

    62% already have this

    49% already have this

    63% already have this

    A companywide program focusedon improving customer

    experience across channels

    An executive in charge ofimproving customer experience

    across products and channels

    A single set of customer feedbackscores (e.g., satisfaction,

    Net Promoter Score) that are usedacross the company

    A voice of the customer program

  • 2010, Forrester research, inc. reproduction Prohibited February 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    5

    Figure 4 Obstacles To Customer Experience Success

    Source: Forrester Research, Inc. 56316

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more

    Percentage of respondents who identified the following as significant obstacles toimproving their companies customer experience

    None of the above

    Lack of urgency

    Lack of understandingabout customers

    Lack of executiveinvolvement

    Lack of clear customerexperience strategy

    Lack of customer experiencemanagement processes

    Lack of cooperationacross organizations

    Lack of budget

    53%

    50%

    49%

    43%

    32%

    16%

    15%

    11%

  • 2010, Forrester research, inc. reproduction ProhibitedFebruary 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    6

    Figure 5 Obstacles To Customer Experience Success are Shifting

    Source: Forrester Research, Inc. 56316

    Source: Q4 2006, Q4 2007, Q4 2008, and Q4 2009 Customer Experience Peer Research Panel Surveys

    Base: North American companies with annual revenues of $500 million or more

    Percentage of respondents who identified the following as significant obstaclesto improving their companies customer experience

    2006

    73%

    59%

    53%

    58%

    2007

    56%

    47%

    55%

    40%

    2008

    42%

    44%

    53%

    54%

    2009

    53%

    50%

    49%

    43%

    Lack of a clear customerexperience strategy

    Lack of customer experiencemanagement processes

    Lack of budget Lack of cooperationacross organizations

    35%

    40%

    45%

    50%

    55%

    60%

    65%

    70%

    75%

    Lack of a clear customerexperience strategy

    Lack of customer experiencemanagement processes

    Lack of cooperationacross organizations

    Lack of budget

  • 2010, Forrester research, inc. reproduction Prohibited February 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    7

    Figure 6 Companies arent Focused On Target Customers

    Source: Forrester Research, Inc. 56316Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more

    Percentage of respondents who agree with the following statements about their companies

    Employees across the company share a consistentand vivid image of target customers

    Decision-making processes systematicallyincorporate the needs of target customers

    The quality of interactions with target customersis closely monitored

    Employees across the company are recognizedand rewarded for improving the experience

    Our companys brand drives how we designcustomer experiences

    Primary research is used to fully understand theneeds and behaviors of target customers

    Employees fully understand the key attributesof our brand

    Senior executives regularly interact with targetcustomers

    Our company has a clearly dened set of targetcustomer segments

    The attributes of our companys brand are welldened

    Senior executives consistently communicate theimportance of serving target customers

    We translate brand attributes into specicpromises we make to customers

    60%

    59%

    53%

    46%

    45%

    43%

    41%

    40%

    31%

    31%

    30%

    24%

  • 2010, Forrester research, inc. reproduction ProhibitedFebruary 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    8

    Figure 7 Companies are Focusing more On Their Brands

    Source: Forrester Research, Inc. 56316

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: North American companies with annual revenues of $500 million or more

    20082009

    Percentage of respondents who agree with the following statements about their companies

    Employees across the company are recognizedand rewarded for improving the experience

    Decision-making processes systematicallyincorporate the needs of target customers

    Our company has a clearly dened set of targetcustomer segments

    Primary research is used to fully understand theneeds and behaviors of target customers

    The quality of interactions with target customersis closely monitored

    Senior executives consistently communicate theimportance of serving target customers

    Employees across the company share a consistentand vivid image of target customers

    Senior executives regularly interact with targetcustomers

    Employees fully understand the key attributesof our brand

    The attributes of our companys brand are welldened

    Our companys brand drives how we designcustomer experiences

    We translate brand attributes into specicpromises we make to customers

    31%41%

    45%

    59%

    46%

    53%

    24%

    40%

    31%

    60%

    43%

    30%

    31%

    36%

    53%

    41%

    50%

    21%

    39%

    31%

    63%

    47%

    36%

    38%

  • 2010, Forrester research, inc. reproduction Prohibited February 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    9

    Figure 8 Forresters 2010 Customer Experience index

    Source: Forrester Research, Inc.56316

    20% 100%30% 40% 50% 60% 70% 80% 90%

    Very poor Poor Okay Good Excellent

    Retailers (82%) 73% 91%

    = Average industry score

    Hotels (80%) 69% 90%

    Insurance providers (72%) 63% 82%

    Banks (66%) 51% 85%

    Credit card providers (65%) 46% 78%

    Wireless service providers (65%) 60% 67%

    PC manufacturers (66%) 61% 78%

    Internet service providers (57%) 29% 68%

    TV service providers (57%) 38% 66%

    Health insurance plans (51%) 41% 67%

    Industry (average)

    Airlines (68%) 50% 80%

    Parcel delivery/shipping rms (78%) 78% 80%

    Utility providers (63%) 57% 69%

    Investment rms (73%) 68% 83%

    Base: US online consumers who have interacted with rms in these industries(numbers have been rounded)

    Source: North American Technographics Customer Experience Online Survey, Q4 2009 (US)

  • 2010, Forrester research, inc. reproduction ProhibitedFebruary 19, 2010

    The State Of Customer Experience, 2010 For Customer Experience Professionals

    10

    Figure 9 Companies Dont Satisfy Customers

    Source: Forrester Research, Inc. 56316

    Percentage of respondents who satisfy customers at least 75% of the timeduring the following interactions in these channels.

    Online

    On the phone

    In person or in thestore/branch 55%

    47%

    43%

    Source: Q4 2009 Customer Experience Peer Research Panel Survey

    Base: 141 North American companies with annual revenues of $500 million or more

    60%

    49%

    38%

    56%

    62%

    33%

    Researching aproduct

    Buying aproduct

    Getting customerservice help

    CuSTOMER ExpERIEnCE LEADERShIp MAkES A DIFFEREnCE

    Companies are definitely making a push to improve their customer experience. And why shouldnt they? Our data shows that customer experience correlates to loyalty (see Figure 10).3 To understand what role a customer experience leader serves inside of these companies, we compared responses from the 69 companies that had an executive in charge of customer experience with the 62 companies that did not have someone in that position. This analysis uncovered that the companies with executives in charge of their customer experience efforts are:

    More ambitious. Eighty-four percent of companies with customer experience leaders say that they want to differentiate their companies with customer experience, compared with 75% of the other firms (see Figure 11).

    More disciplined. Eig...

Recommended

View more >