Magazine article CRM Magazine

There's a Consumer Trust Crisis. Smart Firms Will Shape CX to Address It: Being Transparent and Offering Authentic Experiences Can Help Companies Break through the Murk

Magazine article CRM Magazine

There's a Consumer Trust Crisis. Smart Firms Will Shape CX to Address It: Being Transparent and Offering Authentic Experiences Can Help Companies Break through the Murk

Article excerpt

AROUND the world, customer experience (CX) quality has largely stalled. Forrester Research's 2017 Customer Experience Index for U.S. brands revealed a CX leadership gap--not a single company emerged this year as the benchmark for "excellent" CX. In fact, CX quality worsened across the board.

The CX Index reveals troubling results:

* Losses were broader and deeper than gains. Twice as many companies sank as rose: Of 314 brands in the CX Index, 49 lost points and only 24 gained points. Overall, companies that worsened lost an average of five points.

* Excellent scores disappeared, while the number of poor scores increased. The number of companies in the excellent category fell to zero, and the percentage of companies with poor scores rose from 20 percent to 23 percent.

* Elite brands' scores stayed flat--again. The top 5 percent of companies across all industries are considered "elite brands." Of these 18 elite brands, 16 showed no statistically significant score change.

* Nearly all industry front runners dropped points as their CX improvement stagnated. Seven of 21 industries had new top brands, but none of the seven were catapulted by major gains. In fact, in four industries, the previous highest- scoring brand sank; the new leader merely remained flat.

So why this stagnation? Multiple data sources show that customer confidence is up, spending is up, and expectations are rising as consumers interact with brands more than ever. But the data also shows that trust in companies has dropped precipitously.

Four factors have sparked this collapse in trust: (1) more frequent and extreme misleading or false statements from politicians and executives; (2) stealth propagandists planting false claims that millions of consumers propagate; (3) the power of platforms like Facebook, Google, and Twitter to speed up and scale up the spread of falsehoods; and (4) the belated and (so far) weak response of these tech giants in acknowledging and remedying their role in dispersing disinformation.

The best companies will address the trust crisis head on in 2018 by responding in the following ways:

Companies that own their values will break away from those that merely borrow them. Consumers expect companies to demonstrate authenticity, transparency, and accountability. Those that deliver CX rooted in core values will draw customers; on the other hand, those that borrow their values and stage their superficial experiences will continue to be called out for all to see across social media. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.