Customer Service — Or Lip Service?

31 Aug

Are companies doing a good job with customer service (the customer experience) — or is it just hype? Some companies are doing well, other not so much.

Forrester recently released the results of its research involving its U.S. 2017 Customer Experience Index. Forrester at looks more than 300 brands in deciding its rankings. In a press release, Forrester noted the following for the 2017 study:

“The combination of growing consumer expectations, rising customer churn rates, and more options with lower barriers to switch is placing a company’s customer experience (CX) center stage. CX leaders grow revenue faster than CX laggards, drive higher brand preference, and can charge more for their products. But according to Forrester’s US 2017 Customer Experience Index (CX Index™), CX quality worsened between 2016 and 2017: Twice as many brand scores fell as rose, and losses were bigger than gains.

“Based on a survey of nearly 120,000 U.S. online adult consumers, Forrester’s CX Index measures and ranks more than 300 U.S. brands across 21 industries to identify how well a brand’s customer experience strengthens the loyalty of its customers. Key findings include that not a single industry average improved this year and that emotion continues to have a bigger influence on customer loyalty than effectiveness or ease in nearly every industry. ‘If brands want to break away from the pack and become CX leaders, they must focus on emotion,’ Cliff Condon, chief research and product officer at Forrester, said. ‘Best-in-class brands average 17 emotionally positive experiences for every negative experience, while the lowest-performing brands provided only two emotionally positive experiences for each negative one. Emotion is critical to a brand’s bottom line. For example, the TV service provider industry had the largest percentage of customers who felt annoyed of any industry in the study. Among those annoyed customers, only 17% plan to stay with the brand, 12% plan to increase their spending, and 11% will advocate for the brand. A large TV service provider leaves $104 million on the table for every one-point decline in its CX Index score.‘”

 

Here are the leading companies in various industries.


 

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