The Path to Customer Experience Maturityin
The Age of the Customer
Craig Menzies, Principal Analyst
Serving Customer Experience Professionals
Twitter: @craigmenzies, @forrester, #NASSCOM_ILF
My CX blog: http://blogs.forrester.com/craig_menzies
12th February, 2014
© 2012 Forrester Research, Inc. Reproduction Prohibited
Why should we care about customer experience?
© 2012 Forrester Research, Inc. Reproduction Prohibited
© 2012 Forrester Research, Inc. Reproduction Prohibited
How customers perceive their interactions with your company
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Enjoyable
Easy
Meets Needs
© 2012 Forrester Research, Inc. Reproduction Prohibited
Willingness to consider
for another purchase
Likelihood to
recommend to a friend
Likelihood to switch
business to a competitor
Customer experience correlates to loyalty
© 2012 Forrester Research, Inc. Reproduction Prohibited
The playing field for businesses is changing before your eyes
1900-1960
1960 - 1990
1990 - 2010
2010 +
Sources of competitive advantage change over time
1900-1960
1960 - 1990
1990 - 2010
2010 +
Age of Manufacturing
Age of Distribution
Age of Information
Sources of competitive advantage change over time
Sources of Dominance
1900-1960
1960 - 1990
1990 - 2010
2010 +
Ford, RCA, GE,
Boeing, P&G, Sony
Age of Manufacturing
Age of Distribution
Age of Information
Microsoft, Dell, Google, Capital One
Wal-Mart, Toyota,
UPS, CSXDominant Companies
Sources of competitive advantage change over time
Sources of Dominance
1900-1960
1960 - 1990
1990 - 2010
2010 +
Ford, RCA, GE,
Boeing, P&G, Sony
Age of Manufacturing
Age of Distribution
Age of Information
Microsoft, Dell, Google, Capital One
Wal-Mart, Toyota,
UPS, CSXDominant Companies
Sources of competitive advantage change over time
Sources of Dominance ?Age of the Customer
Contenders include
Southwest Airlines, USAA,
Amazon, …
A 20 year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.
The Age of the Customer
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My Buying Criteria:
•My friend was selling it (proximity)•I could afford it (price)•I hadn’t heard anything bad about it (information)•It was on the cover of a magazine (media)
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Fast forward 25 years!
Word of Mouth, Price, Expert opinion, Proximity
AND…
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Highly detailed specifications
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Competitive comparisons
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With even more detailed specs
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Reviews from other buyers
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Forums of opinionated owners
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• Detailed specs• Model comparisons• Trusted reviews• Best place to buy• Best price to pay• Special offers• Best insurance deals• Owner opinions• Maintenance history• Accessories• Upgrades• Social events• Where to ride• Etc, etc, etc, etc…
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In short…
The Customer has all the power
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Information
Price Location
Tech
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Information
Price LocationTech
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Information
Price LocationTech
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Information
Price Location
Tech
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So how does one “do” customer experience?
2036210,000
Khumbu Icefall
Lhotse Face
“clearly unused to even basic mountaineering equipment”
Customer Experience
47% Differentiate the company from leaders in their industry
13% Differentiate the company from leaders in ANY industry
› Base: 100 customer experience professionals (percentages may not total 100 because of rounding)Source: Q4 2012 Global Customer Experience Peer Research Panel Online Survey
Firms are not doing what it takes
47%don’t measure customer
experience quality
79% don’t train employees on how to deliver
the target customer experience
Not differentiating
Low customer experience maturity
Customer Experience Maturity
The extent to which an organization routinely performs the practices
The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience
Customer Experience Maturity
The extent to which an organization routinely performs the practices required to design, implement, and manage customer experience in a disciplined way.
Customer Experience Maturity
Low CX maturityPractices are missing or performed in an ad hoc way
High CX maturityPractices are performed
systematically
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Get on the path to high customer experience maturity.
RepairElevate
Optimize
Differentiate
RepairElevate
Optimize
Differentiate
STOP the avalanche of bad customer experiences
Repair Phase Key Activities
› Identify bad experiences
› Prioritize fixes
› Coordinate implementation
› Measure results
2008 CXi – Wireless Carriers
$1.7 billion
Very Poor
OK
Base: US online consumers who have interacted with each firmSource: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010
(US), Q4 2011 (US), Q4 2012 (US)
Base: US online consumers who have interacted with each firmSource: North American Technographics Customer Experience Online Survey, Q4 2008 (US), Q4 2009 (US), Q4 2010
(US), Q4 2011 (US), Q4 2012 (US)
RepairElevate
Optimize
Differentiate
Make good CX behaviour the norm
Elevate Phase Key Activities
› Define a customer experience strategy
› Share customer insights with all employees
› Create a consistent, companywide customer experience measurement framework
› Start following a human-centered design process
Edward Jones CXi Score 2011 – 2013
OK
Good
Base: US online consumers who have interacted with Edward JonesSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
RepairElevate
Optimize
Differentiate
A more sophisticated customer experience toolkit
Optimize Phase Key Activities
› Model the relationship between CX quality and business results
› Build strong experience design practices
› Sharpen employees’ CX related skills through targeted training
› Evaluate employee performance against role-specific CX metrics
• Let personality shine
• Provide options
• Help guests feel comfortable in public spaces
“Matt is chillin”
Systematic customer experience training
Six months before Pre-reno 11 days before3 months after re-
opening
Walk-throughImmersion
6 Webinars
Full Associate Training
2 – 3 Day Post-Visit
Courtyard by Marriott CXi Score ‘10 – ‘13
Base: US online consumers who have interacted with Courtyard by MarriottSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
Good
Courtyard by Marriott CXi Score ‘10 – ‘13
Base: US online consumers who have interacted with Courtyard by MarriottSource: North American Technographics Customer Experience Online Survey, Q4 2009 (US), Q4 2010 (US), Q4 2011 (US), Q4 2012 (US)
Good
Excellent
RepairElevate
Optimize
Differentiate
Catapult you to the top
Differentiate Phase Key Activities
› Re-frame customer problems
› Reveal unmet customer needs
› Re-think the entire CX ecosystem
Car loans
Mortgages
Insurance
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USAA
Lead over next highest
brand
Banks 85 +7Credit Card Providers 82 +7Insurance Providers 83 +9
How do you get started on the path to CX maturity?
The Experience-Driven Organization PlaybookMay 2012 “Transform To An Experience-Driven Organization”
Assessment: Where Are You On The Path To Customer Experience Maturity?October 11, 2013 | Megan Burns
Overview: Transform To An Experience-Driven OrganizationMay 7, 2012 | Harley Manning
Gather best practices
Assess your maturity
Understand your customer’s journey(s)
Does your digital channel meet your customer’s needs?
Thank youCraig Menzies
Principal Analyst, Forrester Research (Sydney, Australia)
+61 02 9006 3352, +61 43 555 1412
Twitter: @craigmenzies, @forrester, #NASSCOM_ILF
My CX blog: http://blogs.forrester.com/craig_menzies
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