Strategies for Improving Customer Experience. Summary Results May, 2012
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1 Strategies for Improving Customer Experience Summary Results May, 2012
2 Observa(ons and Conclusions Virtually all responders rate earning customer loyalty as central to their organization s core values. In measuring customers experiences, responders rely most on online customer surveys, followed by face-to-face discussions. Half of responders report that closing the loop with customers, followed by tracking across multiple channels are their most significant challenges with measuring customer experience. While Facebook and Twitter dominate social media, nearly half of responders use individual blogs & online communities to monitor and track customers experiences. 65% of the responders have a customer experience initiative in place or in implementation, and nearly a third of responders are in the planning phase or are exploring options for a customer experience initiative. More than a fifth of responders are unable to calculate the ROI on their customer experience initiatives however 13% do show significant ROI returns, and 2% have achieved transformative ROI. NPS dominates as the preferred customer loyalty index; responders choose NPS twice as often as all others combined. 69% of responders prefer licensed 3rd party solutions for implementing a customer experience management system, rating it 3 or above on a 5 point scale. Of those who chose 3rd party solutions, 58% also chose cloud solutions; of those strongly preferring third party solutions, 72% also showed a preference for cloud-based solutions. Slide 2
3 Program Overview In April 2012, Gatepoint Research invited selected executives to participate in a survey themed Strategies for Improving Customer Experience. Candidates were invited via and 48 executives have participated to date. 80% of responders are at the Director Level or above. 87% of responders are executives working for organizations generating at least $1.5 billion annual revenue. 100% of responders participated voluntarily; none were engaged using telemarketing. Slide 3
4 How would you assess the level to which earning customer loyalty is a core value throughout your organiza(on? (Rate 1 to 5, 1 = completely disagree, 5 = completely agree) 70% 60% 58% 50% 40% 30% 31% 20% 4% 6% 0% 0% Not a core value (1) Most important core value (5) Most responders rate earning customer loyalty as central to their organization s core values. Slide 4
5 How do you use surveys to measure your customers experiences? (Responders can choose more than one answer) Online 79% Face- to- face discussions 63% By phone 52% Postal mail 25% We do not do surveying 4% 0% 20% 30% 40% 50% 60% 70% 80% 90% In measuring customers experiences, responders rely most on online customer surveys followed by face-to-face discussions. Slide 5
6 Where do you monitor/track your customers experiences using unsolicited responses via social media? (Responders can choose more than one answer) Facebook 60% TwiUer 58% Customer Industry online communi(es 46% Customer company blogs 46% LinkedIn 29% 0% 20% 30% 40% 50% 60% 70% While Facebook and Twitter dominate social media, nearly half of responders use individual blogs & online communities to monitor and track customers experiences. Slide 6
7 Which of the following represent the most significant challenges for your company when measuring customer experience? Closing the loop with customers 50% Tracking across mul(ple channels 44% Tracking customer comments across social media 35% GeYng buy- in on value of customer experience metrics Employee engagement Lack of agreement on what metrics to use 27% 27% 27% 0% 20% 30% 40% 50% 60% Half of responders report that closing the loop with customers, followed by tracking across multiple channels, are their most significant challenges with measuring customer experience. Slide 7
8 How would you and your execu(ve team rate your company s customer experience for your industry/market segment? (Rate 1 to 5, 1 = lagging all compe(tors, 5 = beuer than all compe(tors) 60% 50% 48% 40% 30% 29% 23% 20% 0% Lagging all compe(tors (1) 0% BeUer than all compe(tors (5) Responders report that they rate their customer experience as mostly better than their competitors within their industry or market segment. Slide 8
9 Are you planning or currently execu(ng a customer experience ini(a(ve? Ini(a(ve is up and running 42% In implementa(on phase 23% In planning phase 19% Exploring op(ons Neither planning nor execu(ng 6% We started, but put it on hold 0% 0% 5% 15% 20% 25% 30% 35% 40% 45% 65% of the responders have a customer experience initiative in place or in implementation, and nearly a third of responders are in the planning phase or are exploring options for a customer experience initiative. Slide 9
10 What level of ROI have you achieved with your customer experience ini(a(ves? Too soon to tell 29% Unable to calculate ROI 23% Modest has paid for itself 21% Strong, with significant returns 13% Have not had an ini(a(ve Below expecta(ons Transforma(ve (>25% increase) 2% 2% 0% 5% 15% 20% 25% 30% 35% More than a fifth of responders are unable to calculate the ROI on their customer experience initiatives however 13% show significant ROI returns, and 2% have achieved transformative ROI. Slide 10
11 Is your company using Net Promoter Score (NPS ) or a similar index to measure customer loyalty? Using NPS for more than 12 months 33% Using different measurement index 17% Using NPS for less than 12 months 15% Not familiar with NPS 15% Familiar with but not using 13% Ac(vely considering using NPS 8% 0% 5% 15% 20% 25% 30% 35% NPS dominates as the preferred customer loyalty index; responders choose NPS twice as often as all others combined. Slide 11
12 What are your preferences for implemen(ng a customer experience management system? (Rate 1 to 5, 1 = least desirable; 5 = most desirable) Least Desirable (1) Most Desirable (5) 40% 35% 30% 25% 20% 15% 5% 0% 31% 33% 33% 31% 25% 23% 21% 19% 17% 17% 15% 15% 13% 13% 8% 6% 6% 0% Licensed 3rd party solu(on Outsource development Build in- house Use cloud- based solu(on 69% of responders prefer licensed 3 rd party solution, and 50% prefer a cloud-based solution for implementing a customer experience management system. Slide 12
13 If you use 3 rd party solu(ons for a customer experience management system, would you also use cloud based solu(ons? (Rate 1 to 5, 1 = least desirable; 5 = most desirable) Rated 3 or above on both 3rd party solu(ons & cloud 58% Rated 4 or 5 on both 3rd party solu(ons & cloud 72% 0% 20% 30% 40% 50% 60% 70% 80% Of those who chose 3rd party solutions, 58% also chose cloud solutions. Of those strongly preferring third party solutions, 72% also showed a preference for cloudbased solutions. Slide 13
14 What department/func(on is responsible for driving customer experience ini(a(ves? Marke(ng 38% Customer Experience organiza(on 27% Opera(ons 13% Other Sales Execu(ve champion 2% 0% 5% 15% 20% 25% 30% 35% 40% 65% of responders organizations rely on either their marketing department or a customer experience organization to drive and own customer experience initiatives. Slide 14
15 Profile of Responders: Job Level VP 43% Director 33% CxO 4% Manager 20% 80% of responders are Director level or above. Slide 15
16 Profile of Responders: Organiza(on Revenue >$1.5 Billion 87% $500-1,500 Million 13% 87% of responders have revenue of more than $1.5 billion Slide 16
17 About Satmetrix, provides cloud-based customer experience software that helps organizations engage with their customers and take action on their feedback to build stronger customer loyalty. In this way, Satmetrix focuses on helping companies build profitable, sustainable growth through more loyal customer relationships. As co-developer of the industry-leading Net Promoter methodology, Satmetrix has hundreds of successful deployments spanning a wide range of industries and operating in many countries. For more information, visit
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