The Perfect Customer Experience tag:typepad.com,2003:weblog-266312 2009-10-10T12:04:06-04:00 Customer experience marketing, marketplace conversations, social media and demand generation TypePad New Aberdeen Group Study on Customer Experience Management tag:typepad.com,2003:post-6a00d8345294db69e20120a5d3d849970b 2009-10-10T12:04:06-04:00 2009-10-10T12:09:44-04:00 by Randy Saunders Aberdeen Group has published a new research report, “Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand.” The study explores the adoption of Customer Experience Management (CEM) and isolates the leaders in customer retention and satisfaction to examine why these Best-in-Class companies outperform others when it comes to growing and harvesting customer advocates. The study finds: Best-in-Class companies achieved 91% customer retention on an annual basis, versus 59% for All Other organizations. Best-in-Class companies achieved 88% current customer satisfaction rates, versus 69% for All Other organizations. Seventy-five percent (75%) of Best-in-Class companies increased customer loyalty as a result of CEM initiatives, versus 53% of Average Industry organizations. While the vast majority (96%) of survey respondents saw value in formalizing a CEM strategy, only 37% currently have a formal program in place to identify and encourage customer advocacy. Formalized Program to Promote Customer Advocacy (All Respondents) Source: Aberdeen Group, September 2009 "Every customer experience is an opportunity to influence customer acquisition, customer retention, loyalty, and advocacy," explains Ian Michiels, Practice Director of Aberdeen's Customer Management Technology Group and author of the study. The report outlines Best-in-Class strategies and examines process, organization, technology, and other enablers that superior performing organizations use to maintain a competitive advantage. A complimentary copy of this new report is available at www.aberdeen.com/link/sponsor.asp?spid=30410558&cid=6196 Randy Saunders

by Randy Saunders

Aberdeen Group has published a new research report, “Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand.”

The study explores the adoption of Customer Experience Management (CEM) and isolates the leaders in customer retention and satisfaction to examine why these Best-in-Class companies outperform others when it comes to growing and harvesting customer advocates.

The study finds:

  • Best-in-Class companies achieved 91% customer retention on an annual basis, versus 59% for All Other organizations.
  • Best-in-Class companies achieved 88% current customer satisfaction rates, versus 69% for All Other organizations.
  • Seventy-five percent (75%) of Best-in-Class companies increased customer loyalty as a result of CEM initiatives, versus 53% of Average Industry organizations.

While the vast majority (96%) of survey respondents saw value in formalizing a CEM strategy, only 37% currently have a formal program in place to identify and encourage customer advocacy.


Formalized Program to Promote Customer Advocacy (All Respondents)
AberdeenGroup-Figure3

Source: Aberdeen Group, September 2009

"Every customer experience is an opportunity to influence customer acquisition, customer retention, loyalty, and advocacy," explains Ian Michiels, Practice Director of Aberdeen's Customer Management Technology Group and author of the study.

The report outlines Best-in-Class strategies and examines process, organization, technology, and other enablers that superior performing organizations use to maintain a competitive advantage.

A complimentary copy of this new report is available at www.aberdeen.com/link/sponsor.asp?spid=30410558&cid=6196


 Poor Customer Service Costs U.K. Businesses £15.3 Billion Per Year tag:typepad.com,2003:post-6a00d8345294db69e20120a59addc1970b 2009-09-25T17:44:24-04:00 2009-09-25T17:44:24-04:00 By Randy Saunders Businesses in the United Kingdom lose a total of £15.3 billion each year when customers defect and abandon their purchases as a direct result of poor customer experiences. This is according to a new report, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience." The study was sponsored by Genesys Telecommunications Laboratories, Inc., in collaboration with industry analysts at Datamonitor/Ovum. This survey also found: 73% of U.K. consumers ended a relationship due to a poor customer experience The average value of each lost relationship is £248 per year 39% of U.K. consumers said it is critical for companies to provide more intelligent self-service so they are not trapped in unproductive automated systems 83% of consumers welcome more proactive engagement if it improves their experiences Younger consumers are more likely to end relationships based on poor customer service than older consumers Financial services, utilities and telecommunications firms are suffering the biggest losses because they lose substantially more customers than companies in other industries. Nearly one fourth of consumers said they abandoned a financial services company or utility in the past year. Even industries that were historically safe from competition, such as utilities, must now pay closer attention to the customer experience. The survey revealed the following significant root causes of poor customer service: Having to repeat information Feeling trapped in automated self-service Being forced to wait too long for service Interacting with representatives who have no knowledge of the service history (or consumer value) Unable to easily switch between communication channels Voice Self-service is the Most Challenging Communication Channel Forty-one per cent of consumers cite voice self service as the most challenging communications channel compared to only 1 per cent who find it most satisfying. And 39 per cent of consumers said it is... Randy Saunders

By Randy Saunders

Businesses in the United Kingdom lose a total of £15.3 billion each year when customers defect and abandon their purchases as a direct result of poor customer experiences. 

This is according to a new report, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience." The study was sponsored by Genesys Telecommunications Laboratories, Inc., in collaboration with industry analysts at Datamonitor/Ovum.

This survey also found:

  • 73% of U.K. consumers ended a relationship due to a poor customer experience
  • The average value of each lost relationship is £248 per year
  • 39% of U.K. consumers said it is critical for companies to provide more intelligent self-service so they are not trapped in unproductive automated systems
  • 83% of consumers welcome more proactive engagement if it improves their experiences
  • Younger consumers are more likely to end relationships based on poor customer service than older consumers

Financial services, utilities and telecommunications firms are suffering the biggest losses because they lose substantially more customers than companies in other industries.  Nearly one fourth of consumers said they abandoned a financial services company or utility in the past year.  Even industries that were historically safe from competition, such as utilities, must now pay closer attention to the customer experience.

The survey revealed the following significant root causes of poor customer service:

  • Having to repeat information
  • Feeling trapped in automated self-service
  • Being forced to wait too long for service
  • Interacting with representatives who have no knowledge of the service history (or consumer value)
  • Unable to easily switch between communication channels


Voice Self-service is the Most Challenging Communication Channel
Forty-one per cent of consumers cite voice self service as the most challenging communications channel compared to only 1 per cent who find it most satisfying.  And 39 per cent of consumers said it is critical to improve voice self-service to make it integrate more intelligently with human assisted service.

In customer service experiences where the consumer was ‘trapped’ in an automated system, consumers spent, on average, more than ten minutes trying to reach a live agent. 

Even paper-based mail, which can be a considerably slower communications channel, is preferable to poorly implemented voice self-service systems.