A Mistake To Avoid When Using CX Metrics For Employee Incentives

Maxie Schmidt-Subramanian

Do you use your customer experience (CX) metrics to incentivize frontline employees in your company? Here is a cautionary tale I came across in my wireless provider’s store.

While I was chatting with the representative who took care of my problem, I overheard another representative ask a customer for a 9 or 10 on the satisfaction survey. Don’t stop reading — we all know this happens; this is not what this is about. Given that I am a CX analyst with a passion for CX measurement, I asked my service rep what this was all about. What he said about the employee perspective on this blew me away: He said that the company basically said, “Southwest [Airlines] gets nearly only 9’s and 10’s on the survey (meaning the NPS question) so we should be able to do that, too.”

Setting targets for CX metrics requires more than that — benchmarking is a part of it, but it also requires a solid baseline and a realistic stretch target, with realistic being the operative word here. It is probably no surprise to you that the experience those two companies provide is hardly comparable. If you look at Forrester’s 2014 Customer Experience Index (CXi), Southwest Airlines is the industry leader among airlines with a CXi score of 81. And its score is way ahead of the average score for wireless providers of 71 (and also way ahead of my wireless provider’s CXi score).

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Benchmark Your Voice Of The Customer Program: Participate In Forrester’s Upcoming Research On The State Of VoC Programs, 2014

Maxie Schmidt-Subramanian

How mature is your company's voice of the customer (VoC) program? Compare yourself against the state of the art and find out: 

  • How VoC programs affect customer experience and business results.
  • How companies integrate and analyze data from different sources.
  • How VoC program owners share customer insight.
  • How they drive action based on their insights.
  • Which vendors they use to support their VoC program.

We'd like to hear from practitioners that can speak about their company's VoC program. As a thank you for completing our 10-minute survey, you will receive the report resulting from this research, "State Of Voice Of Customer Programs, 2014." As additional thanks, you will receive the high-level results after the survey data has been processed.

Sign up for the survey here.

Customer Experience In Asia Pacific: More Advanced Than You Might Suspect

Harley Manning

For the past two weeks, I’ve been on the other side of the planet, spending a few days each in four very different cities: Sydney, Singapore, Beijing, and Shanghai. While Sydney was much like I remembered it — an exotic version of San Francisco but with better weather — the Singapore skyline had changed drastically and now appears to be a science-fiction version of the seaport I remembered. (If you think I’m kidding, just do a search on “Marina Bay Sands Hotel.”)

In contrast to Sydney and Singapore, I hadn’t been to either Beijing or Shanghai before. I was blown away by how vibrant those cities are and how much prosperity is on display: If the Chinese economy is truly slowing down, you wouldn’t know it from all the luxury cars on the road.

Despite all the diversity I saw on my trip, for me, there was one constant across all four cities: the high level of interest in customer experience.

In Sydney, I gave talks about customer experience to three different groups of 20 to 40 people each. Even though the attendees came from very diverse companies — like insurers, quick-serve restaurants, technology vendors, and giant professional services firms — all three groups asked questions that showed this wasn’t their first CX rodeo. 

I also gave a speech to the digital team at a major bank, and as a bonus, I got to see the company’s chief experience officer give a talk. Frankly, there are a lot of US and European banks that could learn from that large, enthusiastic, clued-in group.

My time in Singapore started out with a customer experience ecosystem mapping workshop for around 35 people. This was also a diverse group, with varying levels of customer experience expertise, even among attendees from the same company. They all picked up on the concepts, though, and generated an impressive amount of insight. 

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Retailers And Mutual Insurers Lead In The Customer Experience Index, France 2014

Joana van den Brink-Quintanilha

By now, you have probably seen the first in a series of reports we are publishing about the state of customer experience in Europe — "The Forrester Customer Experience Index, UK 2014." The second installment — "The Forrester Customer Experience Index, France 2014," paints a similar picture of how French companies are mostly disappointing their consumers. In both the UK and France, no brand was given an “excellent” score, and in France, the majority of consumers rate their experiences as “very poor,” “poor,” or “OK.”

By asking some 2,000 French consumers if their experiences with leading brands met their needs, were easy, and were enjoyable, we are able to provide a benchmark of the quality of customer experience for 38 French brands across eight industries — including airlines, banks, electronics manufacturers, hotels, retailers, TV service providers, wireless service providers, and insurers.

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More Than 6% Of S&P 500 Firms Have A Chief Customer Officer (CCO) Type Of Role

Paul Hagen

Every year, Forrester collects and analyzes data about "chief customer officers" (CCOs) to understand who they are, where they come from, and which companies appoint them. Whether they are called "chief customer officer" or have some other title, these leaders occupy positions of power in a diverse range of companies. Our data shows that CCOs exist at some of the world's biggest companies, including at more than 6% of the S&P 500. The role remains largely experimental at this point — the vast majority of the CCOs we researched hold the position for the first time at their companies and have no previous background in customer experience. However, as companies pivot to adapt to the age of the customer, Forrester believes CCOs have the potential to play a critical role as they have: 1) a deep understanding of changing customer needs and expectations; 2) strong professional brands required for leading change; and 3) experience breaking down operational silos across the CX ecosystem.

For more data about CCOs, check out my latest report, "Chief Customer Officer Snapshot, 2014."

Amazon Leads In Forrester's First UK Customer Experience Index

Jonathan Browne

I’m thrilled to announce the first report in a new stream of research — "The Customer Experience Index, UK 2014." This is the first in a series of reports about the state of CX in Europe.

Which brands did UK consumers rate as the best for customer experience? The highest score went to Amazon, with a Customer Experience Index (CXi) score of 81. Five more retailers — Marks & Spencer, John Lewis, Debenhams, Next, and Boots — scored 75 or more, which is Forrester’s threshold for a customer experience to be considered “good.” It's evident that retailers are doing a better job, on average, of meeting their customers' expectations than the other industries that online consumers rated in this study — airlines, banks, electronics manufacturers, hotels, retailers, and TV service providers.

Among bank brands, Halifax was the top performer with a CXi score of 70, fully 13 points ahead of the lowest bank in the index — Santander, with a score of just 57. Bringing up the rear in Forrester’s index were TV service providers and mobile telecommunications providers — Virgin Media, BT (TV Service), Vodafone, and Orange all had “very poor” CXi scores of less than 55.

If you’re familiar with the Customer Experience Index that Forrester has conducted annually in the US since 2007, you will know that this research provides allows us to compare the experience at leading companies — as rated by their customers. We achieve this by asking customers if their experiences with leading brands met their needs, were easy, and were enjoyable:

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How To Build A Customer-Centric Culture

Sam Stern

In my latest report, "How To Build A Customer-Centric Culture," I describe how customer experience professionals use three tools to embed customer focus in their organizations:

  • Hiring. Firms need to attract customer-centric candidates, screen out applicants who lack customer focus, and onboard new employees in a way that reinforces their customer-centric DNA.
  • Socialization. Companies must communicate their intended experience vision, train employees to deliver the intended experience, and reinforce customer focus with routines. 
  • Rewards. Organizations should use both formal and informal incentives that reward employees for behaviors that lead to better customer experience outcomes.
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Finding The Right Vendor(s) For Your Voice Of Customer Program: Vendor Landscape, Capabilities, And Go-To-Market Strategies

Maxie Schmidt-Subramanian

Are you looking for a vendor or vendors to support your voice of the customer (VoC) program? Or are you reviewing your current VoC vendor(s)?

Selecting the right vendor or vendors can be hard! Why? The VoC vendor landscape is hard to decipher. There are many but relatively small vendors, and they rely on an interconnected network of partners, acquire each other at an impressive rate, and regularly expand into new spaces. And companies often already have a number of vendors they work with. In my recent webinar about VoC, most of the attendees had from three to five vendors that supported their VoC program in some shape or form.

But there are a few beacons to help orient you in your quest:

  • The VoC vendor market is an ecosystem. What vendors are the right “lid” for your “VoC program pot” depends entirely on your internal capabilities and the characteristics of your VoC program. We identified customer feedback management (CFM) platforms and VoC specialist vendors. CFM platforms support VoC programs with a robust set of capabilities that include feedback collection, integration of feedback with other data in a centralized data hub, analysis, reporting, and closed-loop action management. VoC specialists offer a subset of VoC platform vendor capabilities. Their areas of expertise range from surveying customers in order to generate measurement data to mining your unstructured feedback with text analytics, monitoring social media data, and consulting to help establish or evolve a VoC program.
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Forrester's Customer Experience Index For China, 2014

Samantha Jaddou

For the past seven years, Forrester has reported on how consumers rate their experiences with major brands in the US by publishing our annual report, the Customer Experience Index (CXi). The CXi has helped us identify customer experience leaders and helped many top brands in the US benchmark their customer experience against their peers.

This year for the first time, we’re bringing this study to China in order to help us understand the quality of the customer experience in this market. In fewer than two weeks, I’ll be revealing the CXi results for China in Shanghai at Forrester’s Summit For Marketing & Strategy Professionals: China

  

During my track session, I will:

  • Share the interesting and surprising findings in this year’s CXi results for China.
  • Talk about what some leading companies are doing to enhance their customer experience in China.
  • Give you actionable advice on how to improve your customer experience maturity.

The event will also provide a good opportunity for me to hear you out. I am eager to learn about your pain points relating to customer experience in this market.

I look forward to seeing you in Shanghai! 上海见!

Drive Customer-Centric Employee Behavior With Rewards And Recognition

Sam Stern

In my latest report, "Drive Customer-Centric Employee Behavior With Rewards And Recognition," I describe how companies modify their reward and recognition programs to drive more customer-centric employee behaviors.

Many companies tie rewards to a rise in either Net Promoter Scores (NPS) or customer satisfaction scores. Unfortunately, that's exactly the kind of mistake that leads employees and partners to game the system. Porsche discovered that its stellar NPS was the result of dealers offering freebies to customers in exchange for higher scores. Similarly, when it noticed that satisfaction scores and comments didn't match, music retailer Guitar Center had to retool its rewards and recognition system to prevent store associates from massaging customer survey results.

My report describes the process for ensuring your rewards and recognition reinforce customer-centricity, rather than tempting employees to game the system. To avoid common pitfalls, companies must:

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