Customer Experience Study Findings
Posted by Brian Koma on Thu, Aug 06, 2009
In the most challenging economic environment in generations, organizations are more focused than ever on retaining customers and maintaining existing revenue. Improving customer loyalty has replaced growth as the focal point for many organizations, and many businesses have put significant resources into implementing Customer Experience Management (CEM) and Voice of the Customer (VOC) programs, or are in the process of doing so.
But what constitutes success in this arena? Of all the programs that organizations have implemented, which are most effective at driving customer loyalty? The
Customer Experience IQ (CEIQ) study, conducted jointly by Vovici and CGA, pinpoints the most effective elements of customer experience programs and answers these important questions:
- Are Customer Experience Management and Voice of the Customer programs effective at creating customer loyalty?
- What are the most effective methods for creating customer loyalty in the first global economic contraction since 1945?
- What specific steps can organizations take to create loyal customers based on best practices from around the globe?
Derived from quantitative data obtained through an online survey conducted among more than 200 companies around the globe, the Customer Experience IQ (CEIQ) report identifies the six secrets of highly effective customer experience programs that every company can use to create true customer loyalty. Whether your organization has already implemented a Customer Experience Management (CEM) or Voice of the Customer (VOC) program or is just thinking about it, the elements uncovered in the CEIQ study can help you dramatically enhance the effectiveness of your customer loyalty programs.
Key Findings
- The downturn has caused an upturn in interest in measuring the customer experience. In 2008, just under half (47%) of survey respondents said that CEM was important, while in 2009, almost two of out every three organizations (63%) say CEM is important to their business.
- There’s a disconnect between what organizations say and what they do when it comes to CEM/VOC programs. Almost 75% of respondents say that they have a CEM/VOC strategy, yet less than half of respondents say they have formal programs and compensation systems in place to implement the strategy.
- Only those organizations who have implemented formal CEM programs are able to translate those activities into higher customer loyalty. It’s not enough to merely have a strategy – it must be articulated throughout the organization and executed in a coordinated fashion.
- The most effective CEM programs include a standard set of metrics by which the customer experience is measured. Organizations with the highest customer loyalty use one of the many standardized measures (NPS, the Apostle model) or a set of proprietary metrics, in order to apply consistent measures across the organization.
- Organizations with the highest customer loyalty integrate what they know about customers from Customer Relationship Management (CRM) systems into their feedback efforts. CRM integration enables personalization of surveys and invitations and reduces survey fatigue and helps to maintain high response rates.
- Organizations with the highest customer loyalty share CEM and VOC feedback across organizational boundaries throughout the organization. Feedback is not held in silos; rather it is shared freely throughout the organization and viewed as a strategic corporate asset.
- Organizations that have the highest customer loyalty constantly obtain feedback on the performance of customer-facing employees and then share that feedback with those team members. By doing this, they are able to provide constructive suggestions on how the individuals can improve their performance
- Finally, organizations with the highest customer loyalty engage in a co-creative process with their customers. They have a formal process for obtaining customer input and then incorporate those ideas into strategic initiatives and tactical process improvements.
Methodology
Vovici and CGA conducted an online
web survey of 208 organizations between May 20th and June 2, 2009. Respondents include a wide variety of organizations, including small (1-19 employees), medium (20-499 employees) and large companies (500+ employees). Over 62% of respondent organizations are located in North America and United Kingdom, with the balance participating from Asia/Pacific, Africa and South America. Respondents hail from a diverse set of industries, including Marketing, Services, Financial Services, Healthcare, Manufacturing, Technology, Retail and a variety of other segments.
Participants were decision makers who have a comprehensive view of their business operations. Over 70% of respondents hold senior-level titles, including Manager, Director, Vice President or President/CEO/MD. Job responsibilities ranged from marketing, customer service, operations, research and development, administration and market research.
Respondents were provided with an incentive of an early copy of the results of the survey in consideration of their participation. No monetary incentive was provided to any participant.
The results are not statistically representative of any market but provide strong qualitative indication as to the effectiveness of different customer-experience best practices.