1. Webinar What Drives Profitable Customer Experiences?
Megan Burns, Vice President and Principal Analyst
Roxana Strohmenger, Manager, Data Insights Innovation
September 18, Call in at 12:55 p.m. Eastern time

2. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

3. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

4. Image source: Kids Pro (http://kidspro. blogspot
Annual benchmark of customer experience quality at large firms in the US, Europe, and Asia Pacific

5. CX Index study details Based on customer survey data
Measures overall customer experience, customer loyalty, and key CX drivers
On average, 10 large national brands in each industry

6. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

7. We know more about CX.

8. More sophisticated analysis

9. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

10. Original versus next-generation CX Index
What’s the same?
What’s different?
How customers perceive their interactions with a company
Same three dimensions of CX quality
Still correlates to business results
Still possible to compare across industries
Existing customers only
Expanded our approach to capturing the role of emotions in CX quality
More sophisticated way of measuring the three dimensions
Ties scores directly to loyalty — experiences must be good for customers and for the business
Three dimensions are weighted differently in each industry
Benchmark scores on key drivers, not just top-level scores

11. Same dimensions of CX quality
New names to fit more contexts

12. The original Forrester CX Index
“Thinking of your interactions with these firms over the past 90 days . . .”
Enjoyable
How enjoyable were they to do business with?
Easy
How easy were they to do business with?
Meets needs
How effective were they at meeting your needs?

13. Forrester’s next-generation CX Index
Effectiveness
Customers get value from the experience.
Ease
Customers get that value without difficulty.
Emotion
Customers feel good about the experience.

14. New CX Index calculation
Experiences must create and sustain customer loyalty

15. Forrester’s original CX Index calculation
Example: ACME Corporation
Chose 4 or 5
Chose 1 or 2
Net score
82% 4%
78%
“Thinking about your recent interactions with these firms, how effective were they at meeting your needs?” (“Meets needs” criteria)
Chose 4 or 5
Chose 1 or 2
Net score
81% 1%
80%
“Thinking about your recent interactions with these firms, how easy was it to work with these firms?” (“Easy to do business with” criteria)
Chose 4 or 5
Chose 1 or 2
Net score
75% 1%
74%
“Thinking about your recent interactions with these firms, how enjoyable were the interactions?” (“Enjoyability” criteria)
CX Index score: 77

16. Next-generation CX Index calculation
CX Index score =
Forrester Proprietary Algorithm
Effectiveness
Ease
Emotion
Industry weighting
Industry weighting
Industry weighting

17. Next-generation CX Index scores capture something fundamentally different
2007–2014
How customers perceive their interactions with a company — net positive perceptions
2014 and beyond . . .
How well a company’s customer experience helps it create and sustain customer loyalty

18. Image source: http://commons. wikimedia

19. Likelihood to keep existing business with the company
Likelihood to buy other products or services from the company
Likelihood to recommend the company to others

20. Next-gen CX Index loyalty framework mirrors what we did in the original
Retention loyalty  Likelihood to switch business away from the company
Enrichment loyalty  Likelihood to consider the company for another purchase
Advocacy loyalty  Likelihood to recommend the company to others
Note: Government agencies use a slightly different model: compliance loyalty, expansion loyalty, and advocacy loyalty.

21. Weighted differently by industry
Calculation reflects the unique role that effectiveness, ease, and emotion play in creating loyalty across different industries

22. Brands need to be the best at what matters most in their industry
Effectiveness
Ease
Emotion
Ease
Emotion
Effectiveness
Effectiveness
Ease
Emotion
Original CX Index: all equal
Next-gen CX Index: varies by industry
Effectiveness
Ease
Emotion
Note: For conceptual purposes only. Does not reflect actual CX Index weighting in any given industry.

23. Emotion plays the biggest role in 10 of 16 industries + US federal government
Airline
Automotive
Retail
Banking
Government
Car rental
Insurance
Credit cards
Internet service
Investment firms
Parcel shipping

24. Industry-specific driver analysis
The “why” behind a brand’s CX Index score, and what to do about it

25. Key CX drivers vary by industry
Universal drivers:
Industry-specific drivers:
Make customers feel valued.
Resolve customer problems or issues quickly.
Talk to customers in plain language.
Credit Cards  Make sure all questions are answered
Insurers  Reliability
Wireless  Easy to read and understand the website
Note: Industry specific drivers are examples only. The CXi Framework includes the top 25 drivers per industry.

26. Sample CX Index Scorecard
What
Why
How to improve

27. Importance + performance = priority
“RoCXi”

28. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

29. Next-gen CX Index benchmark schedule
January and July 2015
2015 TBD

30. 2015 US CX Index benchmark will include . . .
Airlines
Automotive manufacturers
Auto and home insurers
Banks
Car rental providers
Credit card providers
Desktop/laptop makers
Health insurance providers
Hotels
Internet service providers
Investment firms
Mobile device makers (e.g., smartphones, tablets, eReaders)
Parcel shippers/deliverers
Retailers — traditional
Retailers — online only
TV service providers
Wireless service providers
US Federal government agencies

31. . . . to get access to CX Index benchmark data and analysis
CX Index data packages
Access to syndicated CX Index data and insight deliverables, as well as CX analyst advisory
Custom CX Index scoring project
Leverage CX Index questions for a company’s own CX data collection efforts; Forrester scores the data.
Custom CX Index project
Leverage the CX Index framework for a brand not covered in the syndicated CX Index data offerings or in a market Forrester does not cover.

32. Agenda What is Forrester’s Customer Experience Index?
Why did Forrester decide to change the CX Index?
What’s different? What’s the same?
When will new CX Index benchmarks be available?
How can Forrester clients use Forrester’s CX Index to benchmark and improve their customer experience?

33. CX Index answers the questions that should drive your CX improvement plan
How good is our CX?
How do we compare with other brands?
Where do we have opportunities?
Which of those opportunities should we take on first, second, third?

34. Questions

35. Megan Burns
an_burns
Roxana Strohmenger
_strohmenger

36. Forrester’s Forum For Customer Experience Professionals West WHY GOOD IS NOT GOOD ENOUGH November 6-7, 2014 · Anaheim Marriott · Anaheim, CA
Welcome to a new, more competitive era for CX. From now on, it’s not enough to think you know your customers — you have to really know what they care about most. What’s more, you'll need to understand the critical roles that your people, processes, and technologies play in delivering a compelling experience.
You will walk away knowing:
The key factors that you must focus on to achieve superior customer experience.
Which factors to move beyond.
Innovative approaches that differentiate your firm from competitors.
Use Promo Code “CXW14WEB” to save $100!
Register before September 27 to save an additional $200.

37. Forrester’s Forum For Customer Experience Professionals EMEA WHY GOOD IS NOT GOOD ENOUGH November 17-18, 2014 · Westminster Bridge Park Plaza · London
Welcome to a new, more competitive era for CX. From now on, it’s not enough to think you know your customers — you have to really know what they care about most. What’s more, you'll need to understand the critical roles that your people, processes, and technologies play in delivering a compelling experience.
You will walk away knowing:
The key factors that you must focus on to achieve superior customer experience.
Which factors to move beyond.
Innovative approaches that differentiate your firm from competitors.
Use Promo Code “CXE14WEB” to save £100!
Register before October 4 to save an additional £200.