CUSTOMER EXPERIENCE IN THE DIGITAL ... - … organizations say CX is one of the top two factors...

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A H A RVA R D B U S I N E S S R E V I E W A N A LY T I C S E RV I C E S R E P O RT

CUSTOMER EXPERIENCE IN THE DIGITAL AGE THE NEW COMPETITIVE EDGE

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SPONSOR PERSPECTIVE

At Verizon, we’ve seen firsthand how expectations are changing. Today customers expect to be able to engage with businesses at any time, from anywhere and from any device. Furthermore, they expect a seamless omnichannel experience. They expect it from us, and they expect it from you.

Few Organizations Think Their CX Is Up to ScratchThis research explores the importance of customer experience (CX) to business success, and its conclusion is clear: offering exceptional CX is a top differentiator no matter what your business. As you’ll read, both B2C and B2B organizations say CX is one of the top two factors contributing to their success—second only to delivering quality products as a business priority.

But this report shows that few organizations are successfully meeting these customer expectations—even those that are making CX a priority. Harvard Business Review Analytic Services found that less than half of the organizations that rate CX as a top-two differentiator say they’re performing very well in this area.

Technology Is Key to Excelling at CXSo how can you deliver the extraordinary CX that people now expect? This research shows that technology is key. Those organizations that aren’t making these investments are those that say they’re performing badly at CX. The majority of best-in-class organizations say technology is as important to delivering extraordinary CX as having the right people with the right skills.

CX Can Be Your Competitive AdvantageWe know transformation projects can be challenging. Harvard Business Review Analytic Services found that even the best in class say they’re struggling to keep up with the fast-moving digital landscape. But the benefits of doing so can be far-reaching.

Less than a quarter (23 percent) of respondents have integrated customer data across channels to give them a single customer view. Achieving this isn’t just vital to improving CX; it can help improve processes across the business and give great insight to shape business strategy.

Every step that you take to make your IT infrastructure more manageable, flexible and scalable can help your whole business. Partners can help you achieve this digital transformation and bring IT and the business closer together. This is critical not only to improving CX, but also to attracting and retaining new talent, and to building a sustainable competitive advantage.

JANET SCHIJNS

CHIEF MARKETING TECHNOLOGIST AND VICE PRESIDENT

VERIZON

SCOT ALLEN

DIRECTOR OF BUSINESS COMMUNICATION, CUSTOMER EXPERIENCE

VERIZON

C U S TO M E R E X P E R I E N C E I N T H E D I G I TA L AG E : T H E N E W C O M P E T I T I V E E D G E 1

CUSTOMER EXPERIENCE IN THE DIGITAL AGE THE NEW COMPETITIVE EDGECustomer experience (CX) has become a remarkably sophisticated discipline, according to new research from Harvard Business Review Analytic Services. Driven by tech-savvy customers, it requires new processes and organizational structures, and often the reorientation of an entire organization’s culture. Creating an extraordinary cus-tomer experience depends on having the right people and skills in place to deliver. But people on their own are not enough. In the digi-tal age, great technology—from the analytics that provide customer insight to the applications consumers “touch” to the networks that support them—is just as important to success.

The nearly 500 business leaders who responded to the global sur-vey named customer experience one of the top two differentiators for their businesses, second only to the quality of their products and services. These respondents represent a wide range of industries, geographies and functions within their organizations. Customers expect to engage and transact the way they want to, and exactly what that means changes daily. And while consumer businesses are most affected by this, B2B enterprises and government/nonprofit entities are feeling the effects of this as well.

The near-universal ability of consumers to access information, products and services is changing the mix of customers many orga-nizations serve, the research found. Learning how these new cus-tomers behave and what they want is incredibly important, and few organizations are very good at it. Those that excel are combining the efficiency of customer self-service with a more personalized and engaging experience informed by advanced analytics.

The payoff for delivering a great customer experience is significant. Those that are performing well in CX have gained market share over their competitors. And these best-in-class organizations are almost five times as likely to say they have increased their market share

HIGHLIGHTS

47% say CX is a top-two differentiator for their business—but only half of those perform well in CX

56% of best-in-class organizations have gained market share because of excellent CX

Only 15% of all respondents are confident in their ability to quickly adapt their CX to emerging technology trends

2 H A RVA R D B U S I N E S S R E V I E W A N A LY T I C S E RV I C E S

because of excellent CX as are organizations that rate their CX performance low or that have yet to make it a priority. Best-in-class organizations are seeing significant improvement in all key CX metrics—including sophisticated metrics such as likelihood to recommend or repurchase—and tend to approach CX as a continuous improvement effort rather than a “once and done” project.

Delivering exceptional customer experience in the digital age requires very different capabili-ties than in the past. The effectiveness of an organization’s information and communications technologies is as important as the effectiveness of its people, and according to the research, best-in-class organizations are much more likely to recognize this. Things are changing so fast that even best-in-class organizations struggle to keep up. Still, what matters is that they manage to stay ahead of the competition—including in adopting new engagement channels and deliver-ing a consistent experience across all channels—and best-in-class organizations are doing that.

Organizations face a variety of barriers to improving CX, and the most frequently cited are also extremely challenging to address. These include organizational silos; cultural resistance; and inflexible, outdated technology. Best-in-class organizations are making headway on breaking down silos with new structures, teams and incentives. They imbue their organizations with a “customer culture,” and they invest to standardize and simplify their technology infrastructure so they can more easily build new capabilities on top of that foundation.

Organizations lagging in CX performance have a lot to learn from their best-in-class competitors. The stakes are high, and speed is of the essence.

CUSTOMER EXPERIENCE: A TOP DIFFERENTIATOR When asked to name the most important factors contributing to their organization’s success, 47 percent of respondents placed customer experience in first or second place. This put it second only to product and service quality as a business differentiator. Respondents from business-to-con-sumer (B2C) organizations were equally likely to name CX and product/service quality in their top two, with each appearing 49 percent of the time. But customer experience is not just about con-sumers. Over a third of B2B respondents (38 percent) named it in their top two—though product/service quality rated significantly higher for B2B than for B2C organizations, at 67 percent versus 49 percent. A large global manufacturing organization is finding a lot more of their “customer journey” taking place online, and they’re investing heavily in creating their own digital presence and capabilities. They’ve recruited consumer business leaders with digital business experience to their board of directors to help them navigate the transition.

But saying it’s important and living up to that are two different things. Only half (48 percent) of respondents who named CX a top-two differentiator claim their organization is performing

“Power has shifted to the consumer because of access. They choose the experience that they want to have with us. It has to be both compelling and efficient.” INTERNATIONAL DIRECTOR OF SALES, MARKETING AND PRODUCT SYSTEMS FOR A GLOBAL PUBLISHING ORGANIZATION


very well in this critical area. The others that prioritize CX but say they are not performing well are the underachievers. figure 1 Interestingly, pure-play B2C and B2B are much more likely to perform very well (64 percent and 53 percent, respectively) than are organization with blended business models. Only 39 percent of organizations that have an equal mix of both B2B and B2C said they had high performance in CX, and organizations that are primarily B2B with some B2C do even worse at 34 percent. Given the complexities of what goes into creating a great cus-tomer experience today, it may be that serving such different customer bases makes it more challenging to focus CX improvement efforts.

Yet most organizations don’t have a choice as markets shift and consumers take more control. For example, pharmaceutical organizations have traditionally focused their customer efforts on physicians. Today, patients have access to a wealth of information about their diseases and

treatment protocols, according to the busi-ness support and loyalty manager for a large European pharmaceutical organization. The organizations must now provide infor-mation to patients (without being able to directly engage with them, for regulatory reasons). As a result, they’re reducing the role of the sales force and increasing the role of the digital team, using social media and working with patient advocacy groups. All of this requires changes in skills, culture and tools, and that can be a slow process, which creates risk.

“Every day there’s some new way to interact with customers,” said the loyalty manager. “If we’re too slow, we’ll lose advantage—even if we have the best drug.” Exacerbating the problem is a new globalization initia-tive launched by the CEO. Because of the

FIGURE 1

A FIFTH OF ORGANIZATIONS ARE “BEST IN CLASS”Right click on pie chart to edit data

22% BEST IN CLASSCX is a top-two business success factor and they are performing well

24% UNDERACHIEVERSCX is a top-two business success factor but they are not performing well

54% NON-PRIORITIZERSCX is a not a top-two business success factor

“BEST IN CLASS” CHARACTERISTICS

• Able to overcome silos

• Have more CX knowledge and skills in the lines of business

• Better at data dissemination

• Focus on CX personalization

• Increase speed, responsiveness of digital channels

• View effective technology as important to CX as effective people

• Have greater CX consistency across channels

• Maintain strong CIO/CMO partnership


pending organizational changes (with alignment with products rather than regions), HR is wait-ing to see what happens before filling some key positions. “We’re losing time while the world is changing,” the loyalty manager said. “All pharmaceutical companies are changing their models.”

U.S.-based health insurers are experiencing a similar shift as two industry trends converge: the entry of more individuals into the marketplace (versus employer-provided insurance) and dig-ital. “It’s more of a B2C model,” said the vice president of contact-center technology for a large health plan provider. “We have to become much easier to do business with; we have to use sim-pler, more accessible language.”

7247

53

7251

54

7246

56

683940

6842

44

● BEST IN CLASS ● UNDERACHIEVERS ● NON-PRIORITIZERS

FIGURE 2

SUBSTANTIAL IMPROVEMENT IN CX METRICSPercentage of respondents saying satisfaction scores in these areas have improved in the past two years. ALL SAYING METRICS HAVE IMPROVED

Likelihood to recommend

Product/service attribute satisfaction

Overall customer satisfaction

Retention/repeat purchase rates

Likelihood to repurchase


Even when the customer base is relatively stable, their expectations are not. “Power has shifted to the consumer because of access,” said the international director of sales, marketing and prod-uct systems for a global publishing organization. “They choose the experience that they want to have with us. It has to be both compelling and efficient. They don’t want to spend a lot of time. They want to know they can get the product in a timely fashion at the cheapest price from some-one likely to deliver the actual goods.”

To compete effectively in this changing landscape requires the use of more and better CX met-rics. The ability to stratify data in different ways has driven more analytical behavior at a large drug distribution organization, according to the senior vice president of distribution services. This has been essential as they’ve made the shift to a more customer-centric model. Best-in-class organizations tend to use more sophisticated metrics (for instance, 80 percent measure customer retention/repeat purchase rates, while only 61 percent of the other respondents do; and 71 percent measure likelihood to recommend [NPS], compared with 61 percent of under-achievers and only 51 percent of non-prioritizers). Moreover, the best in class have seen signifi-cantly greater improvement across all measures of performance. figure 2 They are also well ahead of other respondents in meeting customers’ expectations online. figure 3

Performing well at customer experience can produce some very tangible results. Best in class are easily the most confident of being ahead of their competitors in terms of market posi-tion; 60 percent say they are ahead, with a full quarter (25 percent) saying they are signifi-cantly ahead. figure 4 While this on its own does not prove cause and effect, respondents at

FIGURE 3

MOVING CUSTOMER CAPABILITIES ONLINE

IMPORTANCE

PERF

ORM

AN

CE

5.5 6.0 6.5 7.0 7.5 8.0 8.5

8.5

8.0

7.5

7.0

6.5

6.0

5.5

5.0

customize products

● BEST IN CLASS ● ALL RESPONDENTS

purchase

manage product delivery

evaluate products, read others’ reviews

receive after-sales service/support

post-purchase communication

find products


best-in-class organizations explicitly link this advantage to their CX efforts; more than half (56 percent) of best in class say that delivering excellent customer experience has directly contributed to gains in market share, compared with only 22 percent of non-prioritizers and 12 percent of underachievers. In fact, more than a quarter of underachievers (27 percent) say they have lost market share due to poor CX; they are in a notably worse situation than their counterparts in this regard.

TECHNOLOGY FOR SPEED AND CHANGEWhen it comes to delivering CX, the majority of best-in-class organizations (64 percent) strongly believe that the effectiveness of their technology is as important as the effectiveness of their people. Less than half of underachievers and non-prioritizers say the same thing. figure 5 But given the rapid pace of change—especially in the consumer technology space—even the best in class can struggle to keep up.

There are three primary areas of focus for technology in CX:

1. To enable new channels (social media, mobile, etc.) and create a unified experience across all channels

2. To support customer service reps and other employees who work directly with customers

3. To generate greater insight about what customers want and how they behave through customer analytics

All three are essential at the health insurer as it transforms. It has added mobile and web chan-nels and is changing the role of its more traditional interactive voice response system (IVR). “In

FIGURE 4

BEST IN CLASS AHEAD OF COMPETITORSPercentage saying what their organization’s market position is relative to competitors.

56% 12%

Behind

3

24

16

About the same

20

2822

Ahead

3644

60

MARKET POSITION GAINED MARKET SHARE BECAUSE OF CX

Best in class Underachievers



the past, our IVR strategy was focused on how to prevent a call from getting to an agent,” said the vice president. They now use mobile and the web to eliminate a lot of calls in the first place; then when they do get a call, “we know that customer needs to talk to someone.” The challenge then is “How do we get them to the agent best equipped to help them on that first call?” This creates a win for both the customer and the organization.

But skills-based routing is a much more complex proposition than the traditional queue-based routing, calling for the use of sophisticated analytics around the initial interaction, whether it takes place through mobile, the web or IVR. One of the new technologies the organization is test-ing is speech analytics to provide real-time insight into customer emotions and the challenges an agent might be facing. All of this information is being brought together in a new agent desktop.

BEST IN CLASS

FIGURE 5

BEST IN CLASS RECOGNIZES THE IMPORTANCE OF TECH’S ROLE IN CXPercentage agreeing that the effectiveness of their technology is as important to customerexperience as the effectiveness of their people. TOP BOX SCORES (ALL STRONGLY AGREEING, 8-10)

64%

UNDERACHIEVERS

46%

NON-PRIORITIZERS

47%

BEST IN CLASS

21%

UNDERACHIEVERS

8%

NON-PRIORITIZERS

15%

BUT EVEN THEY STRUGGLE TO ADAPT TO EMERGING TECH TRENDSPercentage saying they are able to quickly adapt their customer experience to emergingtechnology trends. TOP BOX SCORES (ALL STRONGLY AGREEING, 8-10)


5935

32

584344

4758

36


FIGURE 6

BEST IN CLASS: PERSONALIZATION, RESPONSIVENESS ENHANCE DIGITAL CXPercentage who have done the following to improve digital customer experience.

Personalization

Increased responsiveness (network speeds/response times)

Customer self-service options

BEST IN CLASS

FIGURE 7

BEST IN CLASS ARE MORE CONSISTENT ACROSS PLATFORMSPercentage agreeing that the quality of their customer experience is consistent across all platforms. TOP BOX SCORES (ALL STRONGLY AGREEING, 8-10)

43%

UNDERACHIEVERS

10%

NON-PRIORITIZERS

21%


Most organizations engage with customers through a variety of channels today. Best in class are more likely to embrace new channels such as mobile apps and providing service to customers directly through tech-enabled products and wearable devices. They’re also more likely to focus on creating a more personalized customer experience, while underachievers are much more focused on customer self-service. figure 6

The more channels there are, the harder it can be to deliver a consistent experience across them. Only 10 percent of underachievers are confident in their organization’s ability to do that. Even best in class have room for improvement, with only 43 percent saying the quality of their CX is consistent across all platforms. figure 7 And only 23 percent of best in class have integrated cus-tomer data across their various channels for a single customer view. Others are in an even worse position, with only 12 percent of underachievers and 11 percent of non-prioritizers having a sin-gle customer view. Organizations that attain this single view are able to serve customers better and increase loyalty. And they’re able to get more value from those loyal customers by cross-sell-ing across different lines of business. As important as this capability is, however, it can be incred-ibly difficult to achieve, particularly for organizations that have grown through M&A or that have a lot of disparate legacy systems.

When it comes to technology, best-in-class organizations are investing in two areas simultaneously:

• Simplifying and standardizing their technology and networking infrastructure to be more adapt-able and to deliver a faster, more responsive customer experience. Inflexible, outdated technol-ogy was named as one of the top three barriers to improving customer experience.

• New innovations in customer engagement that sit on top of that infrastructure. Most organiza-tions struggle to keep up with new technology developments. Even best-in-class organizations find this to be a problem, with only around a fifth (21 percent) saying they are confident that they can quickly adapt to emerging technology trends. That’s still light-years ahead of under-achievers, only 8 percent of whom are confident in their ability to adapt.

The health insurer is halfway through a three-year effort to simplify and standardize its infra-structure and then layer customer engagement onto that. Some of this has to be done concur-rently. “We’re under pressure to do this fast, but we’ve got to get it right,” said the vice president.

THE INTERNET OF THINGSWe’ve all read the exciting stories about how the Internet of Things (IoT) is transforming CX. But it seems that this is still in its infancy. Less than a quarter of all respondents (22 percent) currently engage with customers through IoT. And less than a third of those that don’t use it now have plans to do so in the next two years.

Organizations are missing a huge opportunity here. In a survey conducted almost a year ago, over half of respondents using IoT said it had enhanced their customer service, and 62 percent said that it increased their responsiveness to customers.

Those who think IoT is relevant only for organizations with physical products are missing a point. Executives at one of the world’s biggest banks are already planning for when customers want to do their banking through their cars. IoT is about connecting people as much as things.


Executives in treasury management and innovation at one of the world’s largest banks believe that to stay ahead of their competition, they have to do things differently. They use cloud to experiment and roll out new capabilities quickly, but when it comes to features they think will be differentiating, they build their own.

“We have lots of things pushing against us,” said the head of innovation for the bank. “We have these big old systems of records.” They’re separating the back end from the front end as much as possible in order to focus on rapidly changing customer needs and roll out new capabilities every 90 days. They use rapid prototyping tools and APIs to deliver new products quickly.

“In banking, you can’t separate the products from the experience,” he said. “How we deliver is becoming more important than what we deliver.” For instance, he said, lots of banks do wire transfers. The differentiation comes in the experience of how the wire is delivered. “That is now embedded in the product.”

Organizational silos

Cultural resistance

Inflexible, outdated tech

LOB lack of knowledge/skills

Lack of leadership

37

50

38

44

32

34

11

28

17

26

FIGURE 8

BEST IN CLASS OVERCOMING BARRIERS TO CX IMPROVEMENTPercentage indicating the greatest barrier to improving customer experience at their organization. TOP FIVE BARRIERS

● BEST IN CLASS ● UNDERACHIEVERS


With technological advances likely to continue to evolve rapidly, firms need to work quickly to understand the potential benefits of new technology, upskill their people and develop their sys-tems so that their CX is able to keep pace with expectations.

IMPROVING CX REQUIRES CHANGING THE HARD THINGSThe top three barriers to improving customer experience are the same for best in class and under-achievers alike: organizational silos; cultural resistance to change; and inflexible, outdated tech-nology. figure 8 None of these are easy to change, and many organizations are investing significant time and money to overcome them. Best-in-class organizations are making headway; only 37 per-cent of them named silos a top-three barrier, compared with 50 percent of underachievers, but there’s still a way to go.

This was a challenge for the large drug distribution organization. A few years ago it moved from a heavily matrixed structure to a more vertical one and lost much of its built-in cross-functional collaboration in the process. That proved to be a problem when the organization made customer experience a priority.

“Customer experience is not just about sales and customer service; it touches all aspects of what we do,” said the SVP of distribution services. “How the company handles invoices and what the invoices look like—[they’re] part of the customer experience too.” To reclaim that cross-func-tional aspect, the organization has created “insight action teams,” with representation from sales, finance, operations and IT, at each of its dozens of distribution centers as well as in the corporate office.

The organization hired an outside firm to help redesign the customer experience and change the way leaders think about it. “We’ve always prided ourselves on our culture of efficiency,” said the distribution services SVP. “We reveled in that. Now we’re all about continuous improvement and customer experience. We have to institutionalize that.” That kind of change doesn’t happen overnight. “We spent the first six months just learning the language [of customer experience] and defining what that means for us.”

Customer experience has become a key differentiator for a U.K. bank in an increasingly com-moditized market. The organization has a unique business model in that it provides the banking engine for some very large consumer-facing partners. In the past, it had no framework for what it meant to be customer-focused because it had prioritized its partner relationships to the exclu-sion of end customers. Today, end customers matter a lot.

“In the past, our IVR strategy was focused on how to prevent a call from getting to an agent. Now our goal is to get them to the agent best equipped to help them on that first call.” CIO AT A U.S.-BASED HEALTH INSURANCE ORGANIZATION


In recognition of this, the bank recently initiated a major effort to define what “customer focus” means for them. The process started with a session with the organization’s eight top executives, followed by a convocation of the bank’s broader 70-member leadership team. Each of the eight executives led sections of the program, with the outcome being a shared sense of purpose across the organization. A new head of customer advocacy is responsible for driving cross-channel, cross-product customer focus.

Formal change management programs can help as well. That is a key component of the health insurance organization’s transformation effort—particularly as it rolls out a new agent desktop. “We’ve identified the right SMEs to make them part of the process, and we’re being very deliber-ate in how we communicate this in order to emphasize the positive.”

And because nothing drives behavior like a good incentive, one of the big logistics organizations has added customer experience to its management incentives, making it one of the criteria for managers’ profit-sharing bonuses.

Chief marketing officer (CMO)

Chief information officer (CIO)

Chief executive officer (CEO)

None of these/not a C-level responsibility

Division president or LOB leader

Chief digital officer (CDO)

Two or more leaders share responsibility

21

13

11

9

7

6

FIGURE 9

WHO LEADS DIGITAL CX STRATEGY?Percentage who say the following role is primarily responsible for digital customer experience strategy in their organization.

9

■ Best-in-class CEOs are morelikely to lead, at 15 percent

■ In organizations with sharedleadership, the most likely pair is CIO and CMO


THE CMO/CIO PARTNERSHIPDigital business and customer experience have brought two executive roles very much to the forefront—the CMO and the CIO. In most organizations today, the CMO leads digital strategy, at 21 percent, followed by the CIO, at 13 percent. figure 9 The CIO, on the other hand, is most likely to be responsible for choosing the technologies that enable it (27 percent), followed by the CMO (10 percent). In organizations where either strategy or execution is shared equally by two execu-tives, it is most likely to be this pair.

How these two leaders and their teams work together is a key determinant of success for digital CX. While many organizations are on the hunt for a chief digital officer to lead this charge (exec-utive recruiting firm Korn Ferry named the chief digital officer the third most in-demand execu-tive position of 2015), the fact is, people with the combined skills and aptitudes required are few and far between—only 7 percent of respondents had a CDO leading their digital strategy. In the absence of that, it is essential that CMOs and CIOs work closely and well together. Unfortunately, in far too many organizations, they are either reluctant allies, forced to work together and strug-gling to figure out how and why to best do that, or they have little to do with one another at all—the CMO works with outside providers for digital CX, while the CIO sticks to the back-office tech-nology and integration. figure 10 Only the best-in-class organizations are likely to say their CMO and CIO are well-matched partners who collaborate productively for a common goal.

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34

1822

21

1321

17


FIGURE 10

BEST IN CLASS HAVE STRONG CMO/CIO PARTNERSHIPSPercentage who characterize the relationship between the CIO and the CMO at their organization as one of the following.

Well-matched partners who collaborate productively for a common goal

Distant relations—CMO works with outside providers on digital CX; CIO runs back-office systems/helps with integrations

Reluctant allies, forced together and still figuring out how and why to work together


This sense of partnering with IT extends down into the organization at best-in-class organiza-tions, which have higher levels of collaboration between IT and both marketing and customer service. Best in class are also more likely to say their IT department understands customer needs (72 percent versus 57 percent for underachievers) and is a central driving force in delivering great CX (59 percent versus 38 percent).

CONCLUSIONDelivering a great customer experience in the digital age means combining a simple, intuitive self-service model with a personal and engaging experience made possible by sophisticated ana-lytics and new systems of engagement. This requires underlying technology and networks that are fast, stable, reliable and integrated—and flexible enough to accommodate the next new thing. Making the commitment to a customer focus means change, and change is hard. Becoming best in class calls for commitment from the top, breaking down organizational silos, investment in new technology and, in many cases, a change in the fundamental culture of the organization. But the payoffs for organizations that make this a priority are substantial, starting with increased market share and including improvements in all key customer metrics such as likelihood to recommend and retention/repeat purchase—things vital to achieving growth. The most profound change required might be to realize that this is all a moving target. “CX isn’t a ‘once and done,’” said the publishing organization’s international director. “The move to digital is constantly evolving.” The SVP at the drug distribution organization agreed. “This is about continuous improvement. It’s not a project—we won’t ever be done.”

“ In banking, you can’t separate the products from the experience. How we deliver is becoming more important than what we deliver.” HEAD OF INNOVATION AT A LARGE BANK


METHODOLOGY AND PARTICIPANT PROFILEA total of 494 respondents completed the survey, including 314 who are members of the Harvard Business Review Advisory Council.

SIZE OF ORGANIZATION

Only organizations with 500 or more employees (International) or 1,000 or more (U.S.) took part in the survey. Forty-six percent were in organizations with more than 10,000 employees, 46 percent were in organizations with 1,000 to 10,000 employees, and 9 percent were in organizations with 500 to 1,000 employees. A third (33 percent) had 2014 revenues of $5 billion or more, 21 percent had revenues between $1 billion and $5 billion, and 36 percent generated less than $1 billion.

SENIORITY

Fourteen percent were executive management or board members, 17 percent were senior management, and about a third came from middle management (32 percent) or other levels (37 percent).

KEY INDUSTRY SECTORS

Technology provided 16 percent of respondents, followed by 15 percent from financial services. Ten percent worked in manufacturing, followed by education (9 percent), healthcare (8 percent), government/not-for-profit (7 percent) and energy/utilities (6 percent). Other industries were represented by 5 percent or less.

JOB FUNCTION

Sixteen percent of respondents worked in IT, 14 percent in operations/product management, 9 percent in sales/business development, 8 percent in HR/training, 7 percent in marketing/communications and 7 percent in general management. Other functions represented 6 percent or less of the total respondent base.

REGIONS

Forty-five percent of respondents were from North America; a quarter (25 percent) were from Asia and Europe, respectively; and 5 percent were from South or Central America.


NOTES

hbr.org/hbr-analytic-services

CUSTOMER EXPERIENCE IN THE DIGITAL ... - … organizations say CX is one of the top two factors...

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