10 reasons why customer experience is more important now

1. 10 for Now
10 Reasons why customer experience is more
important NOW
Customer Guru

2. Age of
Manufacturing
Age of
Distribution
Age of
Information
Age of the
Customer
We’ve entered the “Age of the Customer” – an era when focusing
on customers is more important than any other strategic imperative
ü Ford
ü Boeing
ü P&G
ü Sony
ü Walmart
ü Toyota
ü UPS
ü Amazon.com
ü Google
ü Intuit
Contenders:
ü Southwest Airlines
ü Amazon.com
SOURCE OF DOMINANCE
DOMINANT COMPANIES
1900 - 1960
1960 - 1990
1990 - 2010
2010+
Source: Forrester Perspective: The business impact of customer experience
by Kerry Bodine and Moira Dorsey

3. Customer experience is now a key differentiator.
Commoditization because of a plethora of options available to
consumers is killing traditional sources of differentiation.

4. Customers are comparing experiences not products.
Traditional industry verticals are borderless now.
For example, retailers aren’t just competing with other retailers
but also with online private labels.

5. Voice of customer is greater than ever before. Online reviews, social
media, and mobile access have made customers uber informed.
Unhappy customers don’t
think twice before bashing a
brand on Facebook or Twitter

6. 7-Year Stock Performance of Customer Experience Leaders vs.
Laggards vs. S&P 500 (2007-2013)
Source: Watermark consulting website; http://www.watermarkconsult.net/why-
Watermark.html#Loyalty-Lift
Customer experience leaders
outperformed the broader stock
market by around 25 points.
In contrast, the customer experience
laggards posted negative returns.
Several research firms such as Forrester, Gartner etc. point out that
organizations that have better customer experience outperform their
competitors in every industry.

7. Customer experience drives loyalty.
Customer experience strongly correlates to customers’ willingness to
repurchase, reluctance to switch, and likelihood to recommend the brand.

8. Customer review is king. More people resort to peer customer review when
making a purchasing decision today.
Source: Myles Anderson, July 7, 2014. Search Engine Land: http://searchengineland.com/88-
consumers-trust-online-reviews-much-personal-recommendations-195803

9. Advertising is losing its power of persuasion. When making buying
decisions, consumers trust recommendations from friends and
family more than advertising.
Good customer experience is the single most powerful driver for
getting more recommendations.
Source: Flavio Martins, 28 Dec 2013. Business 2 Community: http://www.business2community.com/
customer-experience/customer-experience-important-advertising-infographic-0726258

10. By 2020, customer experience will overtake price and product
as the key brand differentiator.
Most forward thinking companies are already acting now.
Source: Walker Customers 2020 Report

11. Thank you!
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Customer Guru