Forrester CX: Harley Manning and CX Insights

We are live-blogging from Forrester’s CXNYC this week, the event for customer experience leaders, innovators, and practitioners.

Spirit doesn’t focus on CX. They have 18% growth and are among the most profitable.

Comcast is at the bottom of the CX index. But…. they are hugely profitable. In 2015 they had an operating margin of 41%. ‘This is a business that pukes cash’.

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What gives here?  Bad customer experience but growth and profit.

In 2013, Ryanair started to dive. Customers flocked to EasyJet.  Customers could have a better experience and cheap flight. CEO O’Leary changes his strategy and improved the customer experience.   This had an immediate positive effect with a 32% jump in profits.

Quote: We won the war on fares so it was the logical thing to compete on customer service and being nice

Quote: It’s not whether  to transform CX. It’s about when and how. You have to play the long game.

Customer Experience Index Data Points

• 18% of companies are leaders
  • Building loyalty and banking it.
• 59% are middle of the road, blah
• 23% are laggards
  • Laggards have unbeatable low prices
    • But Walmart is closing stores. It has an expiration date.
    • CX leaders can be price leaders
  • Monopolies let you be a laggard.
    • Monopolies break. They have an expiration date
    • Cable companies are losing out to Amazon Prime, Hulu, HBO Go and Netflix
  • Competitive Barriers allow laggards as well
    • Disruptors side-step barriers
    • Uber realizes it’s not about ownership
  • They build resentment

Quote: Whatever you did in the past to make you successful, you cannot count on it for the future.

Three things to win

1. CEO Mandate
   1. ATT is connecting disparate services into a seamless offering.  They are spending $1B on this.
2. Competitive Context
   1. Ingredion $8.8B ingredient manufacturer.  Their CX initiative is founded in competition.  They had to figure out how to win in a very competitive marketplace.  It’s about retention, higher prices, growth, and even driving out costs.
3. Innovation Mindset
   1. Vanguard. Their initial success was low cost mutual funds.  Their investors want more advice.   Vanguard created Vanguard personal advisor services. It’s a hybrid of human and computer advice. Most of the interaction is done digitally. It gives a low price and low minimum.
   2. This has attracted more than $37B in assets

Quote Had I known that being nicer to my customers was going to be so good for business, I’d have done it years ago. Michael O’Leary, CEO of RyanAir