The Customer Experience (CX) Revolution

An animated infographic

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During the 2008 economic downturn, many organizations worldwide had to become experts at customer retention in order to survive. This gave rise to a new discipline – Customer Experience (CX). Today, enterprise organizations see CX as a key business objective, not only for customer retention, but to attract customers, drive revenue, and create brand advocates.

THE RISE OF CX

PRODUCT ANDPRICING

By 2020, customer experience
is expected to surpass product and pricing as the key differentiator for businesses

Source: Forbes

Customers who have an excellent experience are more loyal.


Likelihood to REPURCHASE: 13% 86% Likelihood to RECOMMEND: 7% 77% Likelihood to TRUST: 11% 79% Likelihood to FORGIVE: 11% 62%
Source: Temkin Group, ROI of Customer Experience, 2016
of customers wouldrather spend moneywith companies thatmake it easy forthem to buy.
Source: Avaya, 2014
Increase customer satisfaction by 20% Lift revenue by up to 15% Lower the cost of serving customers by up to 20% Maximizing satisfaction across customer journeys has the potential to:
Source: McKinsey, 2014

CX LEADERS OUTPERFORM LAGGARDS

Source: Watermark Consulting, The 2015 Customer Experience ROI Study.
CX Leadersreturns were35 POINTS HIGHERThan the S&P 500 Index. CX Laggards returns were 45 POINTS LOWER Than the S&P 500 Index.

THE BUSINESS BENEFITS ARE REAL

40% 30% 20% 10% Financial Services will see a5:1 ROI A $3 ROI is expected for every$1 invested in the CX.
Source: Avanade and Sitecore, Customer Experience and Your Bottom Line, 2016

40% of companies who focused on the CX saw increased revenues

38% saw better financial performance than competitors

YET, DELIVERY IS STILL A CHALLENGE

71% However, only1 in 10 rate theirCX deliveryperformance a9 out of 10. 1 71% of companies citedcustomer experience delivery as theirtop strategic performancemeasure.
41% 41% of CX professionals feel operational silos are a significant barrier to providing a seamless CX. 2
55% goes tonew customeracquisition. 3 Only 12% ofmarketing spendgoes to customerretention. 33% goesto brandawareness

1. Source: Dimension Data, 2017 Global Customer Experience Benchmarking Report
2. Source: Amy Sedelius, Why Silos Damage Customer Experience
3. Source: McKinsey

THE RISE OF THE CX EXECUTIVE

Source: CCO Council
The CCO has a three-fold mission: Increase profitable behavior 1. DriveSustainable growth 2. Increase customer centricity 3.

The first Chief Customer Officer (CCO) was hired in 1999 at Texas Power and Light.

There are now more than 500 officially titled Chief Customer Officers in the world (and perhaps hundreds more serving the same role but without the formal title.)

Fewer than 35 of the Fortune 500 companies have a CCO.

Approximately 60% of CCOs are promoted from within, and the remainder are hired from the outside.

The CCO role is the most fragile in the C-suite, with an average tenure of 29.4 months.

The technology sector alone accounts for 26.7% of all CCO employment.

Quadient

Quadient helps companies deliver meaningful interactions with current and future customers. A Neopost company, the Quadient portfolio of technology enables organizations to create better experiences for their customers through timely, optimized, contextual, highly individualized, and accurate communications for all channels. Our solutions bring together and activate the entire organization in the name of customer experience, through better collaboration and visibility into the customer journey.

Quadient supports thousands of clients and partners worldwide in the financial services, insurance and service provider industries in their quest to achieve customer experience excellence via mobile, digital, social media and print technologies.

 

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