First Look At Forrester’s Customer Experience Index, Europe 2014

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First Look At Forrester’s Customer Experience Index, Europe 2014Jonathan Browne, Senior AnalystFebruary 18, 2014

Today’s presentation is a first look …

… an appetizer

© 2013 Forrester Research, Inc. Reproduction Prohibited 4

Agenda

›What is the Customer Experience Index (CXi), Europe?

›Who’s leading in the UK, France, and Germany CXi rankings?

›What are the stories behind the data? And what's coming next?

›Recommendations


Forrester’s Customer Experience Index

› An annual benchmark of the quality of the customer experience delivered by large companies

• Conducted annually in the USA since 2008

• Expanding in 2014:

› Europe (7 countries)

› Urban Russia

› China

How customers perceive their interactions with your company


How was the data collected?

› Online survey – conducted in December, 2013

› Consumers rated experiences with brands in Retail, Banking, Insurance, Mobile Telecoms, TV Service, Consumer Electronics, Hotels, Airlines

› 15,000 responses from consumers in seven countries:

• UK

• France

• Germany

• Spain

• Italy

• Netherlands

• Sweden


How effective were they at meeting your needs?

How easy were they to do business with?

How enjoyable were they to do business with?

Meets needs

Easy

Enjoyable

Forrester’s Customer Experience IndexThinking of your interactions with these firms over the last 90 days . . .


Customers rate Customer Experience Index questions on a five-point scale

Source: January 4, 2013, “Executive Q&A: Forrester’s Customer Experience Index” Forrester report

Didn’t meet any of my needs (1)

Met all of my needs (5)

Very difficult (1) Very easy (5)

Not at all enjoyable (1) Very enjoyable (5)


How is the index calculated?

› At least 100 consumer respondents per brand

› Percentage 4s and 5s — percentage 1s and 2s

› Average of the three individual scores


How is the index calculated? (cont.)

Thinking about your recent interactions with these firms, how effective were they at meeting your needs?(“Meets needs” criteria)

Chose4 or 5

Chose1 or 2

Net score

82% 4% 78%

Chose4 or 5

Chose1 or 2

Net score

81% 1% 80%

Chose4 or 5

Chose1 or 2

Net score

75% 1% 74%

Thinking about your recent interactions with these firms, how easy was it to work with these firms?(“Easy to do business with” criteria)

Thinking about your recent interactions with these firms, how enjoyable were the interactions?(“Enjoyability” criteria)

CXi score:

77

Example: ACME Corporation


We break the landscape into five buckets

Excellent(85 and above)

Good(75 to 84)

Okay(65 to 74)

Poor(55 to 64)

Very poor(Below 55)


Agenda




›Recommendations


Most brands rate “Okay” or worse

Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

Distribution of scores in Forrester’s CXi 2014 in the UK, France, Germany

Excellent

Good

Okay

Poor

Very poor

- 10 20 30

3

19

29

23

1785%

Base: 81 Brands


UK – CXi (Good and Okay)

Travelodge

Samsung

HSBC Bank

Premier Inn

Argos

Next

John Lewis

Amazon

- 10 20 30 40 50 60 70 80 90 656767676970727374757677787981

Good

Okay

Source: 2014, “The Customer Experience Index, UK, 2014” Forrester report

UK Top 8 are all retailers

Top banks


UK – CXi (Poor and Very Poor)

Orange

Vodafone

BT (TV service)

Virgin Media

O2

Virgin Mobile

Sky

Santander

EasyJet

Lloyds TSB

B&Q

Nationwide Building Society

NatWest

0 10 20 30 40 50 60 70 80 90100

38

41

48

52

55

55

55

57

58

63

64

64

64

Source: 2014, “The Customer Experience Index, UK, 2014” Forrester report

Poor

V. Poor

13 points behind Halifax


France – CXi (Good and Okay)

Société Générale Ibis Hotels

Vente-privee.com Decathlon

Crédit Mutuel Kiabi Fnac

MAAF Assurances La Banque Postale

MAIF GMF

Yves Rocher Leclerc

Amazon

-

10

20

30

40

50

60

70

80

90

100

696969717171727273757676

7981

Source: 2014, “The Customer Experience Index, France, 2014” Forrester report

Good

Okay

Insurance and bank brands can be CX leaders!

Amazon tops the chart again …


France – CXi (Okay and Poor)

3 SuissesAir France

Free (TV service)Macif

Banque Populaire Apple

Carrefour Cdiscount.com Crédit Agricole

eBay La Redoute

PriceMinister Free Mobile

Auchan

-

10

20

30

40

50

60

70

80

90

100

5757

60606060616262

6567676868


Okay

Poor

Free Mobile is leading wireless


France – CXi (Very poor)

Canal+

Orange (FT/Wanadoo) *

Bouygues Telecom

AXA Assurances

Orange

LCL (Le Crédit Lyonnais)

Caisse d’Epargne

BNP Paribas

Samsung

SFR

0 10 20 30 40 50 60 70 80 90 100

32

44

45

46

48

49

52

52

53

53


30 point gap separates AXA and GMF


Germany – CXi (Excellent & Good)

H&M

Samsung

Tchibo

Sparda-Bank

eBay

Volksbanken *

Rossmann

Otto

ING DiBa

Amazon

DM

- 20 40 60 80 100

75

75

78

78

78

79

83

84

85

86

90

Volksbanken und Raiffeisenbanken

Source: 2014, “The Customer Experience Index, Germany, 2014” Forrester report

Excellent

Good

Amazon in 2nd place!

ING DiBa makes it into the top tier!


Germany – CXi (Okay, Poor & Very Poor)

Unity Media Kabel Deutschland

Vodafone D2 O2

Deutsche Telekom Media Markt

Air Berlin Allianz

T-Mobile (D1) Apple

Postbank Commerzbank

C&ASparkasse

-

10

20

30

40

50

60

70

80

90

100

47 48 49

57 57

62 63 63

67 68 70 70 72 74

Source: 2014, “The Customer Experience Index, Germany, 2014” Forrester report

Okay

Poor

V. PoorTV servcices trail


Agenda




›Recommendations


Amazon is doing well all around

› Amazon topped the CXi chart in UK, France, and Germany (almost)

› Looking at UK data Amazon performs well across customer segments:

Overall

Tech Pessimists

Tech Optimists

Low Income

High Income

0 20 40 60 80 100

81

78

83

79

82

Amazon UK Cxi (by segment)


By contrast, Marks & Spencer needs to address its “tech optimist” gap

Overall

Tech Pessimists

Tech Optimists

0 20 40 60 80 100

79

83

72

M&S UK Cxi (by segment)

Overall

Tech Pessimists

Tech Optimists

0 20 40 60 80 100

74

72

78

Argos UK Cxi (by segment)


The best experience isn’t necessarily the most luxurious

› Basic brands that consistently meet or exceed customers’ expectations score well

I am a dm girl myself. I think it's because the prices are cheap (cheapest among German

drugstores I believe) but the shops are lovely. All tidy and bright so you never have the feeling

you're in a "scruffy" cheap shop


Brands can break free of their industry for a competitive advantage

› Although firms in the same industry often group together in a small range of CXi scores, some brands manage to break free of their peers

› ING DiBa in Germany achieved an excellent score. I found a customer who was keen to tell me about her experience:

We just got our mortgage there. Easy procedures and really competent and

quick customer service.


Banks can’t price their way out of way out of the business impact of a bad CX

› Forrester found that, for US consumers, CX trumps price-value perception as a loyalty driver for banks and retailers

› Old school marketing and incentives won’t mask a mediocre experience


French banks vie for usefulness, ease, and enjoyability

› In the race between La Banque Postale (73) and Crédit Mutuel (71):

• La Banque Postale is rated as better for meeting customers’ needs and being easy

• But Crédit Mutuel (“la banque a qui parler”) is rated more enjoyable

• Crédit Mutuel also fares better with high income consumers and technology optimists … both desirable segments

What’s next?


There’s more to the data than just CXi

› Three loyalty questions• Willingness to consider for another purchase

• Likelihood to recommend

• Likelihood to switch

› Word of mouth dynamics

› Consumer demographics

› Technology attitudes


CXi is designed to be a springboard for additional analysis

› Understand the competitive landscape

› Prioritize improvement opportunities

› Focus next-level research

› Structure internal CX metrics

› Feed data into broad ROI models


Forrester’s Consumer Technographics

• 400,000 completed surveys annually• 21 countries (60% of world’s

population)• Globally consistent questions


Coming soon

› Forrester CXi reports on UK, France, Germany

› Forrester CXi reports for the rest of Europe (including NL, ES, IT, SE)

› Analysis of the business impact of CX – How much is CX worth in your industry and market?

› Research into what enables CX leaders to deliver superior experiences

› And from next year … Analysis of what helped companies to improve


Agenda




›Recommendations


Recommendations

› Start to measure your company’s CXi• Both overall (brand health) and in specific channels

and interactions (transactional)

• Find your gaps and opportunities to improve

› Identify the drivers of CX quality• Identify the causes of good and bad experiences

• Build a hypothesis – then measure the statistical relationship between your driver questions and the three criteria that make up the CXi

› Make CXi part of the daily vocabulary at all levels of your organization


Questions

Thank youJonathan Browne

+44 20 7323 7652

[email protected]

First Look At Forrester’s Customer Experience Index, Europe 2014

Marketing

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