New Aberdeen Group Study on Customer Experience Management

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

Comments

[amaka]

It works better to change the three concurrently but it is a very gradual process. The changes will not be immediate

[Study Marketing London]

Great article, this blog is very interesting to read.

[Michael Whitlow]

What happens with the 9% bad customer experience? Increasingly, very public whining. What do you think about old and new media supporting the whining? Are we getting too many "badvocates?" I posted something today at The Buzz Bin - http://bit.ly/3h1giF - Your comments?

[Chris Reaburn]

Great post. Find it interesting that study after study reflects roughly the same results (directionally) yet the best-in-class remain best-in-class and laggards remain laggards. What does a conmpany change first - service culture, process or people? Do you dare change all three concurrently?

[Table Runners]

It should be a simple concept: Treat your customers as you would want to be treated, and they will return. But that is not always the way it works is it?