A Great Customer Experience
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- Dylan Greer
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2 A Great Customer Experience Tom McCann, Senior Analyst June 3 rd, 2015
3 We work with business and technology leaders to develop customer-obsessed strategies that drive growth Forrester Research, Inc. Reproduction Prohibited 3
4 Clients who had a good experience invested 4.5 times more than those who said they had a poor experience. Those investment added up to several billion incremental dollars per year Forrester Research, Inc. Reproduction Prohibited
5 Great customer experiences lead to great financial results examine the impact of changes in customer experience quality on revenue growth. Used Forrester s Customer Experience Index results on US Brands to measure changes in CX and Annual Reports to establish changes in revenue. Source: West Monroe Parnters, Improve Your Customer Experience and Grow Revenue?, August 15, 2014, Mary Tehrani, Dave Nash and Tim Fox 2015 Forrester Research, Inc. Reproduction Prohibited 5 (
6 Great customer experiences lead to great financial results. Name CX 13 CX 14 Rev 12 Rev 13 % change CX % change Rev 2015 Forrester Research, Inc. Reproduction Prohibited 6
7 % Change Revenue Great customer experiences lead to great financial results. 0.3 It can be 0.25 empirically proven that an improvement in customer experience is statistically correlated to better 0.2 revenue growth. West Monroe Partners % Change CX Index 2015 Forrester Research, Inc. Reproduction Prohibited 7
8 Great customer experiences lead to great financial results Forrester Research, Inc. Reproduction Prohibited 8
9 Great customer experiences lead to great financial results. Companies that deliver great customer experiences are reward by consumers and investors alike. Watermark Consulting 2015 Forrester Research, Inc. Reproduction Prohibited 9
10 What s the connection between customer experience, revenues, and corporate value? 2015 Forrester Research, Inc. Reproduction Prohibited 10
11 Enrichment loyalty The likelihood that a customer will buy additional products and services from the company Retention loyalty The likelihood that a customer will keep existing business with the company Advocacy loyalty The likelihood that a customer will recommend the company to others 2015 Forrester Research, Inc. Reproduction Prohibited 11
12 Correlation between CX quality and loyalty Source: Forrester report The Business Impact of Customer Experience, These numbers represent the Pearson correlation coefficient between consumers' Cxi Index score for companies and their rating for each of the three loyalty variables Forrester Research, Inc. Reproduction Prohibited 12
13 Customer Experience How customers perceive their interactions with a company 2012 Forrester Research, Inc. Reproduction Prohibited
14 Three core dimensions of CX quality Effectiveness Ease Emotion Customers get value from the experience. Customers get that value without difficulty. Customers feel good about the experience Forrester Research, Inc. Reproduction Prohibited 14
15 Popular Theory Emotion Ease Effectiveness 2014 Forrester Research, Inc. Reproduction Prohibited 15
16 Popular Theory Emotion Ease Effectiveness 2014 Forrester Research, Inc. Reproduction Prohibited 16
17 Emotion Effectiveness Effectiveness Ease Emotion Ease 2014 Forrester Research, Inc. Reproduction Prohibited 17
18 Airline Automotive Retail Banking Government Car Rental Insurance Credit Cards Internet Service Investment Firms Parcel Shipping 2014 Forrester Research, Inc. Reproduction Prohibited 18
19 People will forget what you said. They ll forget what you did. But they will never forget how you made them feel Forrester Research, Inc. Reproduction Prohibited 19
20 Universal Drivers 2014 Forrester Research, Inc. Reproduction Prohibited 20
21 1. Make customers feel valued 2015 Forrester Research, Inc. Reproduction Prohibited 21
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23 Recognition
24 2. Resolve customer problems or issues quickly 2015 Forrester Research, Inc. Reproduction Prohibited 24
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26 Flight cancellation notice Next available flights Flight details New flight booking Source: Delta Air Lines iphone app 2013 Forrester Research, Inc. Reproduction Prohibited 26
27 3. Talk to customers in plain language 2015 Forrester Research, Inc. Reproduction Prohibited 27
28 2014 Forrester Research, Inc. Reproduction Prohibited 28
29 2014 Forrester Research, Inc. Reproduction Prohibited 29
30 Industry Specific Universal What delivers a great customer experience? GREAT CX Dimensions Effectiveness Ease Emotion Drivers 1. Make customers feel valued 2. Resolve problems quickly 3. Talk in plain Language 4. Driver 4 5. Driver 5 6. Driver Forrester Research, Inc. Reproduction Prohibited 30
31 Thank you Join Us At Forrester s Summit For Marketing Leaders 15 September 2015 Four Seasons Sydney Learn from thought leaders Hear from your peers Engage with Forrester Analysts Tom McCann tmccann@forrester.com forrester.com
Outside In The Power of Putting Customers at the Center of Your Business. Harley Manning VP & Research Director, Customer Experience
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