First Look At Forrester’s Customer Experience Index, Europe 2014

1. Making Leaders Successful Every Day

2. First Look At Forrester’s Customer Experience Index, Europe 2014 Jonathan Browne, Senior Analyst February 18, 2014

3. Today’s presentation is a first look … … an appetizer

4. Agenda › What is the Customer Experience Index (CXi), Europe? › Who’s leading in the UK, France, and Germany CXi rankings? › What are the stories behind the data? And what's coming next? › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 4

5. Forrester’s Customer Experience Index › An annual benchmark of the quality of the customer experience delivered by large companies • Conducted annually in the USA since 2008 • Expanding in 2014: › Europe (7 countries) › Urban Russia › China © 2013 Forrester Research, Inc. Reproduction Prohibited 5

6. How customers perceive their interactions with your company

7. How was the data collected? › › › Online survey – conducted in December, 2013 Consumers rated experiences with brands in Retail, Banking, Insurance, Mobile Telecoms, TV Service, Consumer Electronics, Hotels, Airlines 15,000 responses from consumers in seven countries: • UK • Spain • France • Italy • Germany • Netherlands © 2013 Forrester Research, Inc. Reproduction Prohibited • Sweden 7

8. Forrester’s Customer Experience Index Thinking of your interactions with these firms over the last 90 days . . . Enjoyable Easy Meets needs © 2013 Forrester Research, Inc. Reproduction Prohibited How enjoyable were they to do business with? How easy were they to do business with? How effective were they at meeting your needs? 8

9. Customers rate Customer Experience Index questions on a five-point scale Didn’t meet any of my needs (1) Met all of my needs (5) Very difficult (1) Very easy (5) Not at all enjoyable (1) Very enjoyable (5) Source: January 4, 2013, ―Executive Q&A: Forrester’s Customer Experience Index‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 9

10. How is the index calculated? › At least 100 consumer respondents per brand › Percentage 4s and 5s — percentage 1s and 2s › Average of the three individual scores © 2013 Forrester Research, Inc. Reproduction Prohibited 10

11. How is the index calculated? (cont.) Example: ACME Corporation Thinking about your recent interactions with these firms, how effective were they at meeting your needs? (“Meets needs” criteria) Thinking about your recent interactions with these firms, how easy was it to work with these firms? (“Easy to do business with” criteria) Thinking about your recent interactions with these firms, how enjoyable were the interactions? (“Enjoyability” criteria) Chose 4 or 5 Chose 1 or 2 Net score 82% 4% 78% Chose 4 or 5 Chose 1 or 2 Net score 81% 1% 80% Chose 4 or 5 Chose 1 or 2 Net score 75% 1% 74% CXi score: © 2013 Forrester Research, Inc. Reproduction Prohibited 77 11

14. Most brands rate “Okay” or worse Distribution of scores in Forrester’s CXi 2014 in the UK, France, Germany Excellent 10 20 30 Base: 81 Brands 3 Good 19 Okay 29 Poor Very poor 23 17 85% Source: January 15, 2013, ―The Customer Experience Index, 2013‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 14

15. UK – CXi (Good and Okay) Amazon Marks & Spencer John Lewis Debenhams Next Boots Argos eBay Premier Inn Halifax HSBC Bank Barclays Bank Samsung Apple Travelodge UK Top 8 are all retailers - 20 40 60 81 79 78 77 76 75 74 73 72 70 69 67 67 67 65 80 Good Okay Top banks 100 Source: 2014, ―The Customer Experience Index, UK, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 15

16. UK – CXi (Poor and Very Poor) NatWest Nationwide Building Society B&Q Lloyds TSB EasyJet Santander Sky Virgin Mobile O2 Virgin Media BT (TV service) Vodafone Orange 64 64 64 63 58 57 55 55 55 52 48 41 38 0 20 40 60 13 points behind Halifax Poor V. Poor 80 100 Source: 2014, ―The Customer Experience Index, UK, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 16

17. Amazon tops the chart again … France – CXi (Good and Okay) Amazon Leclerc Yves Rocher GMF MAIF La Banque Postale MAAF Assurances Fnac Kiabi Crédit Mutuel Decathlon Vente-privee.com Ibis Hotels Société Générale 81 79 76 76 75 73 72 72 71 71 71 69 69 69 Insurance and bank brands can be CX leaders! - 20 40 60 80 Good Okay 100 Source: 2014, ―The Customer Experience Index, France, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 17

18. France – CXi (Okay and Poor) Auchan Free Mobile PriceMinister La Redoute eBay Crédit Agricole Cdiscount.com Carrefour Apple Banque Populaire Macif Free (TV service) Air France 3 Suisses Free Mobile is leading wireless 68 68 67 67 65 62 62 61 60 60 60 60 57 57 - 20 40 60 Okay Poor 80 100 Source: 2014, ―The Customer Experience Index, France, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 18

19. France – CXi (Very poor) SFR 53 Samsung 53 BNP Paribas 52 Caisse d’Epargne 52 LCL (Le Crédit Lyonnais) 49 Orange 48 AXA Assurances Bouygues Telecom 45 Orange (FT/Wanadoo) * 30 point gap separates AXA and GMF 46 44 Canal+ 32 0 20 40 60 80 100 Source: 2014, ―The Customer Experience Index, France, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 19

20. Germany – CXi (Excellent & Good) DM 90 Amazon in 2nd place! Amazon 86 ING DiBa 85 Otto 84 Rossmann Excellent 83 Volksbanken und * Volksbanken Raiffeisenbanken 79 eBay 78 Sparda-Bank 78 Tchibo Good ING DiBa makes it into the top tier! 78 Samsung 75 H&M 75 - 20 40 60 80 100 Source: 2014, ―The Customer Experience Index, Germany, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 20

21. Germany – CXi (Okay, Poor & Very Poor) Sparkasse C&A Commerzbank Postbank Apple T-Mobile (D1) Allianz Air Berlin Media Markt Deutsche Telekom O2 Vodafone D2 Kabel Deutschland Unity Media 74 72 70 70 68 67 63 63 62 57 57 49 48 47 - 20 40 60 Okay Poor V. Poor TV servcices trail 80 100 Source: 2014, ―The Customer Experience Index, Germany, 2014‖ Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 21

23. Amazon is doing well all around › Amazon topped the CXi chart in UK, France, and Germany (almost) › Looking at UK data Amazon performs well across customer segments: Amazon UK Cxi (by segment) High Income Low Income Tech Optimists Tech Pessimists Overall 82 79 83 78 81 0 © 2013 Forrester Research, Inc. Reproduction Prohibited 20 40 60 80 100 23

24. By contrast, Marks & Spencer needs to address its “tech optimist” gap M&S UK Cxi (by segment) Tech Optimists 72 Tech Pessimists 83 Overall 79 0 20 40 60 80 100 Argos UK Cxi (by segment) Tech Optimists 78 Tech Pessimists 72 Overall 74 0 © 2013 Forrester Research, Inc. Reproduction Prohibited 20 40 60 80 100 24

25. The best experience isn’t necessarily the most luxurious › Basic brands that consistently meet or exceed customers’ expectations score well I am a dm girl myself. I think it's because the prices are cheap (cheapest among German drugstores I believe) but the shops are lovely. All tidy and bright so you never have the feeling you're in a "scruffy" cheap shop © 2013 Forrester Research, Inc. Reproduction Prohibited 25

26. Brands can break free of their industry for a competitive advantage › Although firms in the same industry often group together in a small range of CXi scores, some brands manage to break free of their peers › ING DiBa in Germany achieved an excellent score. I found a customer who was keen to tell me about her experience: We just got our mortgage there. Easy procedures and really competent and quick customer service. © 2013 Forrester Research, Inc. Reproduction Prohibited 26

27. Banks can’t price their way out of way out of the business impact of a bad CX › Forrester found that, for US consumers, CX trumps price-value perception as a loyalty driver for banks and retailers › Old school marketing and incentives won’t mask a mediocre experience © 2013 Forrester Research, Inc. Reproduction Prohibited 27

28. French banks vie for usefulness, ease, and enjoyability › In the race between La Banque Postale (73) and Crédit Mutuel (71): • La Banque Postale is rated as better for meeting customers’ needs and being easy • But Crédit Mutuel (―la banque a qui parler‖) is rated more enjoyable • Crédit Mutuel also fares better with high income consumers and technology optimists … both desirable segments © 2013 Forrester Research, Inc. Reproduction Prohibited 28

29. What’s next?

30. There’s more to the data than just CXi › Three loyalty questions • Willingness to consider for another purchase • Likelihood to recommend • Likelihood to switch › Word of mouth dynamics › Consumer demographics › Technology attitudes © 2013 Forrester Research, Inc. Reproduction Prohibited 30

31. CXi is designed to be a springboard for additional analysis › Understand the competitive landscape › Prioritize improvement opportunities › Focus next-level research › Structure internal CX metrics › Feed data into broad ROI models © 2013 Forrester Research, Inc. Reproduction Prohibited 31

32. Forrester’s Consumer Technographics • 400,000 completed surveys annually • 21 countries (60% of world’s population) • Globally consistent questions © 2013 Forrester Research, Inc. Reproduction Prohibited 32

33. Coming soon › Forrester CXi reports on UK, France, Germany › Forrester CXi reports for the rest of Europe (including NL, ES, IT, SE) › Analysis of the business impact of CX – How much is CX worth in your industry and market? › Research into what enables CX leaders to deliver superior experiences › And from next year … Analysis of what helped companies to improve © 2013 Forrester Research, Inc. Reproduction Prohibited 33

35. Recommendations › Start to measure your company’s CXi • Both overall (brand health) and in specific channels and interactions (transactional) • Find your gaps and opportunities to improve › Identify the drivers of CX quality • Identify the causes of good and bad experiences • Build a hypothesis – then measure the statistical relationship between your driver questions and the three criteria that make up the CXi › Make CXi part of the daily vocabulary at all levels of your organization © 2013 Forrester Research, Inc. Reproduction Prohibited 35

37. Thank you Jonathan Browne +44 20 7323 7652 jbrowne@forrester.com