Canadian brands must focus on emotion to differentiate from
competition
CAMBRIDGE, Mass., Aug. 27, 2020 /CNW/ -- According to
Forrester's (Nasdaq: FORR) Canada
2020 Customer Experience Index (CX Index™), 11% of Canadian brands
significantly improved their CX Index scores this year. The results
also reveal that despite the COVID-19 pandemic, several industries
saw an improvement in customer experience (CX) quality, including
credit card issuers, direct banks, investment firms, and
multichannel retail industries. Compared to last year, no industry
averages declined in 2020's Canada CX Index, making 2020 the second
year in a row — and the second year ever — this trend has
occurred.
Seven brands represented elite brands — the top 5% of
brands in the entire CX Index — Chapters/Indigo, Costco Wholesale,
Home Hardware, MEC, PetSmart, Toyota, and Well.ca. Of four new
elite brands, only Toyota rose to its status due to a real
improvement in CX quality.
Results further show that emotion is key to achieving brand
differentiation. How an experience makes customers feel has larger
influence on their loyalty to a brand than effectiveness or ease in
every industry. In the multichannel retail industry, for example,
among customers who felt valued, 87% plan to stay with the brand,
84% plan to increase spending with the brand, and 86% will advocate
for the brand.
"While the COVID-19 pandemic has done little to disrupt the
quality of experience Canadian brands provide customers, our
rankings show those brands looking to break away from the pack and
deliver better CX must shift their focus to understanding how
customers are affected by experiences emotionally," said
Sharyn Leaver, SVP of research at
Forrester. "This will be a crucial differentiator in how brands can
not only achieve and sustain customer loyalty but better
distinguish themselves from the competition."
Conducted for the sixth year in a row, Forrester's CX Index
results are benchmarked on a survey of more than 58,000 Canadian
customers across 147 brands and 12 industries. Forrester's CX Index
methodology helps CX leaders grow revenue faster, drive higher
brand preference, and charge more for their products. Forrester's
CX Index helps brands identify the key drivers of a positive CX for
their customers to prioritize efforts. Even a minor improvement to
a brand's customer experience quality can add tens of millions of
dollars of revenue by reducing customer churn and increasing share
of wallet. Additionally, superior CX leads to reduced service costs
and lowers the cost of customer acquisition through word of
mouth.
Resources:
- Read about the results of the Canada 2020 CX Index.
- Find out what your brand ranks in Forrester's CX Index rankings
tool.
- Discover how the CX Index enables firms to maximize the
efficacy of CX investments.
- Find out the full brand rankings in Forrester's Canada 2020 CX Index (client login
required).
- Check out how to revitalize CX measurement and
prioritization.
About Forrester's CX Index
Forrester's CX Index is the most complete and powerful CX tool in
the market today. The CX Index connects quality and loyalty
measures to specific revenue drivers, giving leaders the
unprecedented ability to guide CX investments that produce revenue
return.
About Forrester
Forrester (FORR) is one of the most influential research and
advisory firms in the world. We work with business and technology
leaders to drive customer-obsessed vision, strategy, and execution
that accelerate growth. Forrester's unique insights are grounded in
annual surveys of more than 690,000 consumers and business leaders
worldwide, rigorous and objective methodologies, and the
shared wisdom of our most innovative clients. Through proprietary
research, data and analytics, custom consulting, exclusive peer
groups, certifications, and events, we are revolutionizing how
businesses grow in the age of the customer; learn more at
forrester.com.
Media Contact:
Ira Kantor
Public Relations
Forrester Research, Inc.
ikantor@forrester.com
SOURCE Forrester