S4B STRATEGY FOR
BUSINESS ISSUE 29 Summer 2008
Roll the credits
The next competitive
With customer experience receiving more attention than
ever before, we explore the impact on the bottom line.
The basic concept of customer experience The bottom line
is now widely understood. In sectors as diverse The latest studies suggest that customer
as local government, retail and ﬁnancial experience has rightly become a priority.
services, there is an agreement that func- According to Forrester Research, there is a
tionality and price are no longer enough. remarkably close correlation between good
Instead, organisations are beginning to focus customer experience and customer loyalty.
on improving all of the interactions that Forrester’s Customer Experience Index
customers have with them. (CxPi) ranks 112 US ﬁrms for their ability to
It is a trend that was discernible back in deliver a good customer experience. Signiﬁ-
2003, when Beyond Philosophy found that cantly, customers of the ﬁrms in the top
71% of business leaders saw customer expe- quartile were 6% more likely to make addi-
rience as the next competitive battleground. tional purchases than the industry average.
By 2005, 95% had come round to this view. Customers of those in the bottom quartile
So have investments in improving customer were 8.9% less likely to make another pur-
experience lived up to their promises? chase. (See Figure 1)
FIG. 1: BUSINESS DYNAMICS ARE BETTER FOR CUSTOMER EXPERIENCE LEADERS
Customer experience index relative to industry average
First quartile Second quartile Third quartile Fourth quartile
Likelihood to consider
Fujitsu Strategy For Business, issue 29 Summer 2008
another purchase from 6.0%
N. Nyman Oy
provider compared to
industry average 2.1%
Very few senior
executives regularly Reluctance to switch
interact with their business away from
provider compared to
customers or monitor industry average 1.1%
the quality of customer
interactions to make
sure the situation is
Source: North American Technographics® customer experience online survey. Q3 2007 -11.2%
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