The ForeSee Experience Index (FXI) Now Available | Download the Report
Walmart might not have as good of a chance of catching up to Amazon’s online retail business as they hope. Facebook should be weary of users leaving for other social media sites. Microsoft stands to lose more customers to Apple. For an industry that lives and dies by upselling products and services, financial services companies will likely have trouble in that department in the near future.
That is, unless these companies turn their attention to customer experience. A good customer experience is a critical driver of financial success, so it should be measured and managed the right way.
The ForeSee Experience Index (FXI) – the first of many to come – was developed to give executives and company analytics teams a bird’s-eye-view of how measuring satisfaction with the customer experience WILL give their companies a competitive edge in the marketplace.
For this study, ForeSee measures satisfaction at the brand level, or what we call the customer relationship level – using a scientific technology that goes beyond what anyone else has done before to offer predictive and actionable insights so executives know exactly how they are doing at the brand level and how they can improve. The Customer Relationship Measure uses satisfaction as its metric of choice to measure the customer experience and is just one part of a robust system of metrics that include elements that drive satisfaction and future behaviors such as retention, upsell, and word of mouth that are outcomes of the experience (see figure below for the ForeSee Customer Experience Model).
Based on more than 75,000 customer responses collected during the last three quarters, the ForeSee Experience Index includes not just one but four scores: Satisfaction, Retention, Upsell, and Word of Mouth Index (WoMI) – all key drivers of business success – for the most well-known brands around the globe. Key findings of this first-of-its-kind report include:
- Satisfaction among the top brands is high: The average score for the companies measured in this index is 80 on the study’s 100-point scale – typically considered the benchmark for excellence by ForeSee.
- Amazon is head of class: Amazon continues to show that it is the consummate customer experience leader on the web and in mobile. Therefore, it is no surprise that Amazon is the leader at the brand level as well with an 87. However, in this study they have plenty of company at the top with 12 other brands reaching to within three points of the leader – two of them (Avon and Nordstrom) lag just one point behind.
- Why satisfaction matters: When we compare the future behaviors of highly satisfied customers to less satisfied customers, we find that highly satisfied customers report being:
- 75% more likely to prefer the brand overall;
- 60% more likely to do business with the company;
- 83% more likely to purchase more;
- 63% more likely to purchase from the brand the next time they are in the market for a similar product or products;
- 77% more likely to give the brand a positive recommendation to others;
- 76% more likely to trust the brand in general.
- Driving satisfaction: As much as satisfaction drives future behaviors, there are elements that drive satisfaction and therefore affecting customer future behaviors. At the aggregate level, the Product element (which measures the appeal, uniqueness, and quality of products) was the top priority for 45% of the brands in this study, while the Service element (which measures the quality and reliability of services) was the top priority for 35% of the brands.