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S4B STRATEGY FOR
BUSINESS ISSUE 29 Summer 2008




Roll the credits
The next competitive
BATTLEGROUND?
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.




Thank you.
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%


-3.0%
Very few senior




Niko Nyman
executives regularly Reluctance to switch
-8.9%
6.8%
interact with their business away from
provider compared to
customers or monitor industry average 1.1%
the quality of customer
interactions to make



niko@nnyman.com
-4.0%
sure the situation is
genuinely improving.
Source: North American Technographics® customer experience online survey. Q3 2007 -11.2%



01




www.nnyman.com
www.gapingvoid.com



Google for “lovemarks” :)



I guess this image is not available on Flickr...



http://www.flickr.com/photos/travischurch/238590930/

Published in: Technology, Business
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