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Posts Tagged ‘Forrester Research’

Why should I invest in improving the Constituent experience at my nonprofit?

It is reasonable to ask, if my nonprofit invests in the constituent experience, will it work? If you are in the C-Suite, that is the question.

I only know of one nonprofit that uses something like the Forrester Customer Experience Index to measure things so I don’t have any benchmark data. I would love to learn there are more nonprofits using this measure and I would give anything to analyze the data. Here is what we know from the for profit world.

This question drove Watermark Consulting to evaluate the macro impact of customer experience excellence. They’ve accomplished this over the years by studying the total returns for two model stock portfolios comprised of the Top 10 (“Leaders”) and Bottom 10 (“Laggards”) publicly traded companies in Forrester Research’s annual Customer Experience Index ranking. The results are stunning.

For the 6-year period from 2007 to 2012, the Customer Experience Leaders in their study outperformed the broader market, generating a total return that was three times higher on average than the S&P 500 Index. Furthermore, while the Customer Experience Leaders handily beat the S&P 500, the Laggards trailed it by a wide margin.

Keep in mind, this analysis reflects more than half a decade of performance results.  It spans an entire economic cycle, from the pre-recession market peak in 2007 to the post-recession recovery that continues today. The Customer Experience Leaders in this study are clearly enjoying the many benefits that happy, loyal customers deliver:  better retention, greater wallet share, lower acquisition costs and more cost-efficient service.

And the Laggards?  They are being crushed under the weight of high customer turnover, escalating acquisition costs and an uncompetitive cost structure that is inflated by each customer complaint and avoidable inquiry.

 

Do you want to be a leader or a laggard?

Growing Constituents And Revenues Are Top Priorities For 2013

As more signs point to strengthening economic activity in the US and selected regions of other parts of the world, corporate austerity is fading and growth is back in the spotlight. Acquiring customers, improving the customer experience, and growing revenues have returned to center stage. Forrester Research recently asked more than 2,000 global business decision-makers at large organizations what their “critical” and “high” priorities are for the next 12 months. We found that:

  • Their top priority is acquiring and retaining customers (73%).
  • Tied for the top spot is growing overall company revenue (73%).
  • The third most important priority is addressing the rising expectations of customers and improving customer satisfaction (68%).
  • Lowering operating costs now only takes sixth place on the priority list (63%).

It is evident from these data that effectively managing customer relationships has become the top priority for business success.

Better customer experiences drive improvement for three types of loyalty: willingness to consider another purchase, likelihood to switch business to a competitor, and likelihood to recommend to a friend or colleague. Forrester’s models estimate that the revenue impact from a 10-percentage-point improvement in a company’s performance, as measured by Forrester’s Customer Experience Index (CXi) score, could exceed $1 billion.

More here: Carpe Diem With The CRM Playbook: Growing Customers And Revenues Are Top Priorities For 2013 | Forrester Blogs.

What is the Customer Experience Index? Why should you care?

January 18, 2013 Leave a comment

Is it ok to your investors to ignore money on the table by providing a mediocre customer experience?

Kerry Bodine, Vice President and Principal Analyst at Forrester Research, discusses what Forrester’s Customer Experience Index is and what it means for you at Customer Experience Forum 2012 in Los Angeles.

What is digital disruption?

January 15, 2013 1 comment

What if someone with 1/10th your cost structure launched a full scale attack on your business tomorrow? Will you be a disruptor or be disrupted?

James McQuivey, VP at Forrester Research and author of Digital Disruption, discusses what Digital Disruption is all about.

Why Customer Experience? Why now?

December 27, 2012 Leave a comment

Kerry Bodine at Forrester, in a great blog post, writes that “For decades, companies have been promising to delight customers, while simultaneously disappointing them in nearly every channel. That tactic won’t cut it anymore. Why not? We’ve entered a new era that Forrester calls the age of the customer — a time when focus on the customer matters more than any other strategic imperative.”Customer Age

Here are 3 reasons why now:

  • Commoditization has stripped away existing sources of differentiation. Competitive barriers of the past like manufacturing strength, distribution power, and information mastery can’t save you today – one by one, each of these corporate investments has been commoditized.
  • Traditional industry boundaries have dissolved. Companies in every industry find themselves competing with new types of competitors – automakers with services like Zipcar, newspapers with Google News, travel agents with Expedia, and the entire retail industry with Ebay.
  • Customers have more power than ever. With online reviews, social networks, and mobile web access, it’s easy for your customers to know more about your products, services, competitors, and pricing than you – and to share their opinions of your company with their friends.

Tablets are the fastest adopted device in history

November 7, 2012 1 comment

English: The iPad on a table in the Apple case

The use and adoption of tablets is exploding. Some just use it to access email on the run, others are using to easily show presentations to clients and customers and some are just having fun.

Tablets are the fastest-adopted devices in history. If we mark the modern tablet era by Apple’s 2010 iPad launch, then an astounding 84 million iPads and as many as 120 million tablets in total have flown off the shelves in just two years. Forrester’s global workforce and decision-maker surveys and client conversations show just how fast tablets are being adopted. What is your take on all this? As an iWorker, how are you using tablets?

  • Three-quarters of a billion tablets will be in use by 2016. It took more than 20 years for the PC to reach an installed base of 750 million people. But tablets will surpass that mark in less than half the time. Global tablet sales will top 375 million in 2016 with about one-third of tablets acquired by businesses for employees. Back in 2007, we wrote that to reach the second billion users, the computer market would be driven by lower-cost hardware, useful applications, and easy access to the Internet from anywhere.Tablets fit that bill perfectly.
  • Some 81% of firms expect to support tablets for employees. IT decision-makers are getting tablet fever as 81% of firms report interest in using tablets. According to these IT decision-makers, tablets will come into the enterprise via several doors, including employees bringing their own: Our latest survey of global information workers shows that 12% use tablets, and 8% paid for it themselves. And more than half of the 1,004 firms we surveyed plan to increase their spending on mobile devices and apps by at least 10% next year.
  • Tablets will accelerate the rise of the anytime, anywhere information worker. Today, 15% of information workers use at least three connected devices for work, work from at least three different locations, and use at least seven apps for work. And 30% of information workers satisfy at least two of those three criteria. The rise of tablets will drive the number of anytime, anywhere information workers up. Tablets enable access from more locations and bring relevant and useful apps to make employees more productive.

via Forrester Research : Research : Mastering The Business Tablet Landscape.

Are you thinking customer experience?

October 16, 2012 Leave a comment

Passion for our customers is what it is all about. Here are some recent articles focused on the customer experience.

Protecting Our Data-Driven Efforts In a world that’s ever-more reliable on data, some proposed policies in front of Congress threaten to hamper companies’ customer-experience efforts. If Congress passes some of the proposed data privacy bills, personalization in marketing and one-to-one communications will deteriorate.

Data, Data Everywhere The new reality of marketing is one in which consumers expect a sophisticated level of personalization in their communications, offers, and interactions with companies. At DMA2012 in Las Vegas, thought leaders from all aspects of the direct marketing industry will converge to discuss and share best practices about how to help organizations move forward on the path toward integrated, one-to-one communications.

Why Some Companies Succeed–For Now–Despite Their Poor Customer Experiences Recently there was a question via email from one of Forrester‘s clients, who asked: “How do you explain the success of companies that consistently provide a poor experience but perform well financially?”

Delivering Customer Service That Makes an Emotional Connection Many companies strive to provide great customer service. However, few companies deliver the kind of customer service that makes an emotional connection with customers – the kind of connection that fosters loyalty and willingness if not an eagerness among customers to recommend a company to a friend.

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