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Major New Study on CX: How Does Your Organization Measure Up?
A major new study, "Global Insights on Succeeding in the Customer Experience Era," reveals how executives are dealing with the new customer experience (CX) imperative in an era when customers expect increasingly connected experiences across all customer channels, touch points, and interactions.
"This study makes clear that there is a chasm between what businesses think and what their customers think when it comes to delivering positive customer experiences," says Christine Viera, vice president of product marketing at Oracle. "Today’s consumers are plugged in 24/7 and demand instant access to information and transactional capabilities. And they're unafraid to make a change if a company no longer meets their expectations."
Conducted by independent market research company O'Keefe & Company and sponsored by Oracle, the study draws on online interviews with more than 1,300 senior executives. The executives represent organizations from a wide variety of industries in North America, Latin America, Europe, and Asia Pacific.
Key survey findings include the following.
- Businesses and their customers are worlds apart. While 49 percent of executives believe customers will switch brands due to poor customer experience,1 research among customers reveals that 89 percent of them have already switched providers because of poor customer experience.2 And even though 80 percent of respondents believe they are effectively delivering positive, consistent, and relevant experiences to their customers,3 only 39 percent of companies earned a CX index of excellent or good from customers.4
- Businesses are stuck in idle. While 93 percent of respondents say improving the customer experience is one of the top three priorities for their organization, and 91 percent wish to be considered a CX leader within their industry, 37 percent are just getting started with a formal CX initiative.
- Huge financial stakes. The cost of CX failure is high. Businesses estimate they lose 20 percent of annual revenue as a result of not offering a positive, consistent, and brand-relevant customer experience.
- Lessons learned. Successful executives have improved the customer experience through initiatives that span people, processes, and technologies. Of those companies that consider their CX initiative advanced, the most successful projects are5
- Building a training program and incentives for employees to offer a great customer experience
- Updating company core values to include the need to provide the most appropriate customer experience to all customers
- Implementing a specific technology to improve customer service
"This report makes it clear that technology investments need to keep up with customer expectations. Organizations that are not developing and deploying sophisticated customer experience programs are already falling behind," says Viera.
Read the full report, "Global Insights on Succeeding in the Customer Experience Era."
- Those who strongly agree.
- “2011 US Customer Experience Impact (CEI) Report,” RightNow (acquired by Oracle in March 2012).
- Those who rank themselves 7 to 10, where 1 is poor and 10 is excellent.
- “The Customer Experience Index 2013,” Forrester Research Inc., January 15, 2013.
- Respondents asked to select top three.