EXQ is a measurement tool developed by Professor Dr. Phil Klaus to identify the key drivers of customer experience that correlate most strongly with customer behaviors like satisfaction, loyalty, and advocacy. EXQ studies have identified around 25 key experience attributes from over 300 that account for 88% of customer decision making. EXQ provides insights into what matters most to customers, how a brand's experience stacks up against competitors, and which areas provide the greatest opportunities to improve the customer experience and business outcomes. Companies that have applied insights from EXQ studies have seen increases in metrics like profitability, customer retention, and share of wallet.

1. http://bit.ly/2v6xwdg
Experience Quality
Measure (EXQ)
A more accountable
measure for CX
Introducing EXQ| Dec 2017 | Christopher Brooks | Lexden

2. Introduction to Experience Quality Measurement (EXQ©)
© Prof Dr Phil Klaus & Lexden Ltd
Professor Dr Phil Klaus, a former Wealth Management marketer was struggling to show any correlation with
the conventional CX measures of recommendation and satisfaction, with the profitability of his company.
Committed to finding a more reliable measure for others to work with he immersed himself in world of
academia. Ten years of research, one Amazon best seller and numerous awards later, EXQ was born. This is
the most reliable measure for customer experience effectiveness currently available.
EXQ provides the following critical insights for any leading customer-led organisation:
1. Identifies what matters most to customers (using a proven set of drivers which account for 90% of decision
making)
2. Benchmarks the relative importance of EXQ drivers for one band versus the competition
3. Measures the importance of participants feedback based on their value to the brand. With feedback from
those most committed to a brand (contribution and share of category) more valued in analysis
4. Identify which EXQ drivers are not valued by customers – and therefore can be removed without customer
impact and significant saving to the company
5. Highlight which EXQ drivers are differentiating to one
brand versus others, and which are market
expectations
6. Foundation insight to develop a brand’s unique set
of ‘Customer Standards’ based on drives behaviour
7. EXQ is an complimentary layer of CX insight, typically
a one-off study run every 1-2 years to see impact of changes

3. Success Increase by Aligning Resource to the ‘Real’ Customer Opportunity
A common focus is to improve market
shortfalls by ‘fixing’ broken proposition or
weak customer experiences.. Whilst these
create marginal gains, they are not more
about what the company wants to correct
than what the customer cares about and are
rarely sustainable, often surpassed by others
before any advantage is realised.
By understanding and aligning business
advantage to what matters most (WMM) to
customers (see EXQ drivers), then the business
creates a meaningful basis to improve. The key is
to ensure whenever a WMM proof point is
demonstrated to customers through proposition
or customer experience, that the customer’s
expectations are fulfilled in a way which
reinforces the relevant difference the company
provides (through it’s consistent brand
presentation) which creates a sustainable
competitive advantage.
© Lexden Ltd. Data Source Prof Dr Phil Klaus

4. What’s Behind Experience Quality Measurement?
Strength of EXQ
as a reliable
indicator of NPS
Strength of EXQ as a
reliable indicator of CX
attributes driving SoC
Identify profit of
fulfilling client
attributes
Originating from over 300+ attributes, 25 are the
most reflective for client’s share of category
accounting for 88% of all impacting decision
making. These brand, service and post-purchase
experience attributes have been successfully
trialled across 1,200 companies to inform their
importance and impact on share of category
behaviour.
© Prof Dr Phil Klaus & Lexden Ltd
EXQ© (Experience Quality Measurement) is an award
winning customer/client experience performance
research method used to understand which customer
attributes inform customer behaviour outcomes (such as
share of wallet, satisfaction and advocacy). EXQ
connects what customer experience matter most with
positive customer behaviour change.

5. What Is EXQ And How Is It Arrived At?
EXQ (Experience Quality Measurement) identifies what constitutes the ideal customer experience, derived
from it’s impact on customer behaviour (rather than intention), across areas such as repurchasing, share of
category, word of mouth and satisfaction. 1,100 studies have been completed across all major industry sectors
and across the globe.
Methodology to arrive at EXQ
Explore what
customer’s perceive
experience constitutes
to arrive at a
preliminary scale
Using Exploratory
Factor Analysis (EFA)
the scale is purified
using a customer
sample against the
output behaviour in
question
Using Confirmatory
Factor Analysis (CFA)
the purified scale
reliability is validated
by a representative
sample
Validation achieved by
assessing the extent to
which customer
experience explains
customer behaviour
1. Scale Generation 2. Scale Purification 3. Reliability Assessment 4. Conceptual framework
EXQ output is on three levels:
1.The Explanatory Power calculation of EXQ against a given outcome (e.g. Share of Category)
2.The Share of Category (or alternative outcomes sought)
3.The ranked customer attributes from the purified scale which account for the Share of Category
© Prof Dr Phil Klaus & Lexden Ltd

6. Case Study #1 To Understand What Drives Customer Decision Making
Code Top 10 Customer Experience Drivers for Brand X Brand X
BRE6 Their offerings have the best quality 13.40%
SPE1 They advised me throughout the process 7.60%
SPE3 They keep me informed 7%
SPE4 They demonstrate flexibility in dealing with me 6.50%
SPE6 The personnel relate to my wishes and concerns 6.40%
SPE5l I always deal with the same people 5.80%
SPE7 The people I am dealing with have good people skills 5.50%
BRE7 The offerings are superior 4.50%
BRE4 I choose them not because of the price alone 4.40%
PPE4 They will look after me for a long time 3.90%
The distribution of a brand’s EXQ profile
is typically defined within the first few
drivers in this case representing over
40% of what drives decisions for Brand X.
Drivers 6-10 account for a further 24%
explaining 2/3rds of the reasons for a
customer’s decision making.
These findings highlight the importance
of ‘the superior quality of Brand X’s
offerings’ (i.e. product, proposition &
experience management) which is
almost twice as important as any other
driver selected by customers. What this
actually is for Brand ‘X’ is captured as
part of the study.
Top line describers of drivers are further interrogated within the study to understand 1) how customers describe them
and 2) which touchpoints/experiences the associate them with. This approaches proven extremely effective.
© Prof Dr Phil Klaus & Lexden Ltd

7. Case Study #2 Interrogation Of EXQ Drivers To Inform Priority Planning
EXQ Drive range % overall outcome Accumulative Total
1-6 47% -
7-13 29% 76%
14-20 19% 95%
21-27 5% 100%
Investing resource in the top quartile of drivers delivers 9 times more efficiency use of resources than if
committed to the bottom quartile of drivers. As part of the study we detail the bottom performing drivers
with an intention of reducing or removing investment because of their lack of value or impact on customer’s
decision making.
Each driver is identified from one of three ‘broad’ customer journey stages in the customer experience
relationship. These are expressed as brand (pre-purchase), service (purchase) or post-purchase. For Brand X
the service experience is delivering the most important drivers.
However, from the 1,100 studies we know those brands with priority drivers focussed at post purchase are the
most successful, generating 45% of their profits from this phase. This chart highlights that Brand A is missing
out on profits because it is too focussed on pre-purchase and purchase experience and neglects post purchase
35.35% 58.60% 6.05%
BRE - Brand Experience SPE - Service Experience PPE - Post Puchase Experience

8. Case Study #3 The Value Of Critical Findings Provided By EXQ
This is not a continuous feedback programme. In fact, drivers do not change that often. Like brand tacking, EXQ
takes time for drivers to increase in importance or to move up and down the ranking. This only happens when
the customers see evidence of activity which resonates with what ‘matters most to them’. If you remove activity
which is of no value to the customers, the top score for EXQ improve. The fewer drivers accounting for most of
the reasons customer choose your brand, the better. Better because:
1) it’s easier to apply the understanding across the business
2) It shows investment is more efficient which in turn will increase ROI and profitability from CX
3) With fewer drivers distinct to the brand, you can benchmark your scores with the competitors (also
captured as part of the study) to identify the brand experience difference (CX DNA)
© Dr Prof Phil Klaus & Lexden Ltd
EXQ
driver
codes

9. Wealth Management Example
Case Study #4 & #5 How To Achieve Incremental Profit From CX
Retail Banking Example
Challenge:
Retail banking division of a financial services firm
(Continental Europe), which was eager to explore
recent hard-to-explain churn in their customer base.
We used EXQ and its three dimensions (brand
experience, service experience, and post purchase
experience) to demonstrate CX’s positive and
significant influence on customer satisfaction, loyalty,
and word-of-mouth behaviour.
Outcomes:
EXQ highlighted the crucial importance of the post-
purchase experience on customer behaviour, which is
now heavily emphasized, leading to an increase in
Share-of-Wallet (+22%), and Word-of-Mouth (+36%).
Moreover, the shift to the post-purchase experience
led to an increase of profitability by 12% overall.
Challenge:
Wealth Management North America, increases in
competition, customer churn, employee retention,
and negative word-of-mouth.
Outcomes:
The firm used customer satisfaction and NPS as CX-
related measurement. EXQ highlighted, for the first
time, what customers truly valued about their
services. The results of our studies imply that EXQ is a
significantly better predictor of both loyalty and word-
of-mouth behaviour. EXQ is used to trigger a cultural
change where ‘emotional experiences’ and ‘post-
purchase care’ became the new KPIs. The firm
recovered from their challenges and is now
experiencing increases in their customers’ Share-of-
Wallet (+11%), employee retention (+14%), leading to
an overall increase of profitability of 6%.
© Prof Dr Phil Klaus & Lexden Ltd

10. Translating EXQ Into Workable CX Transformation Tools
Lexden has the exclusive agreement for EXQ© measurement and subsequent application of EXQ findings
into organisational frameworks within the UK.
EXQ is an award winning study with the highest known reliability of predicting customer behaviour from
customer experience activities.
The ‘Brand Experience Platform’ has been developed by Lexden to translate EXQ drivers in a working ‘tool
kit’ which clients can apply to their current programme. The proven methodology works in three simple
steps:
1. Identify ‘What Matters Most’ to customer in their relationship with the brand (and why)
2. Identify where this matters most across the customer’s journey and touchpoints. Plotted on the MILO
matrix which also explains how to grow CX: leveraging strength of experience, improving the
effectiveness, innovating unrecognised brand assets or reshaping or removing ineffective customer
experiences
3. Identify how the brand delivers a differentiated experience, true to it’s core purpose and relevant,
motivating and meaningful to it’s customers and employees
Lexden facilitate EXQ studies, and run Brand Experience Platform engagements with clients ready to be
customer-led by the truth of what matters most to their customers. for more information on either of
these unique customer experience programmes contact christopherbrooks@lexdengroup.com, 0044
1279 902205. or visit our website for more content on EXQ from Professor Dr Phil Klaus.

11. THANK YOU
christopherbrooks@lexdengroup.com | www.lexdengroup.com | @twitter.com/lexdengroup
No.1, The Courtyard, Windhill, Bishops Stortford, Herts CM23 2ND | 01279 902205