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What It Means
9 Leaders Will Stall As Laggards Creep Up
11 Supplemental Material
Just 18% of US brands provided good or excellent CX. A mere 1% of the brands in our 2016
US CX Index achieved a score in the excellent category, and just 17% earned a score in the good
category.1 Whats more, there was little progress year over year. The percentage of excellent
scores held steady at 1%, indicating a significant opportunity for more brands to move into this
elite category and gain a competitive advantage through experience-based differentiation. The
percentage of good and OK brands each increased by just two points. Those gains came from a
decline in the percentage of brands in the poor and very poor categories, which each shrank by
two percentage points.
Canadian CX remained mostly mediocre. A full 58% of companies in our 2016 Canada CX
Index earned scores in the OK category.2 Although 30% of firms garnered scores in the good
category, most of them fell near the bottom of the bracket, meaning theyre barely better than OK.
Thats roughly the same tepid performance as in 2015. In fact, only about one-quarter of Canadian
companies showed any movement at all from the previous year. Among brands whose scores did
move, the number that rose and fell and the amount by which their scores changed was about equal.3
No European brands made it to the excellent category; even good scores were scarce. UK
brands had the strongest CX in Europe in 2016, with 20% of their scores falling into the good
category; however, thats only slightly better than the 15% of UK brands rated poor or very poor
by their customers.4 German brands fared even worse, with just 14% rated good a percentage
thats flat year over year.5 France fared worst in our research: No brands achieved a good rating
and even the percentage of OK brands fell from 2015 levels.6 The result: 65% of French companies
were rated poor or very poor.
Nearly 75% of Asia Pacific brands remained just OK, despite some improvement. Not a single
brand in the region achieved the rank of excellent, and less than a quarter managed a score of
good.7 However, there was widespread progress as roughly three-fifths of companies improved
mostly from the very poor and poor categories to OK. Chinese brands fared best on overall scores:
Consumers ranked 31% of companies as good and 69% as OK. Indian brands showed the most
progress, with three-fifths rising by at least five points. However, only 24% of Indian brands earned
a score of good, while 75% scored just OK. Australian CX stagnated as 76% of brands received a
score in the OK category and few firms moved either up or down.
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1%
17%
US 59%
20%
3%
1%
30%
Canada 58%
10%
1%
0%
Metro 31%
China 69%
0%
0%
0%
20%
UK 65%
Excellent 14%
1%
Good
OK
0%
Poor 18%
Australia 76%
Very poor 6%
0%
0%
Metro 24%
75%
India 1%
0%
0%
14%
Germany 71%
15%
0%
0%
0%
France 35%
62%
3%
Base: online adult customers (18+) of at least one industry who interacted with at least one brand in
that industry between October 2015 and October 2016 (base sizes vary by year)
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia,
Canada, France, Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016
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On average, digital retail provides only slightly better customer experiences than traditional retail (see
Figure 2).8 However, digitals small advantage comes only from better-performing laggards not
standout leaders. The top digital retailers in the eight countries we covered actually scored one point
lower on average that the top traditional retailers. Our data also showed that:
The race looked just as tight on a country-by-country basis. Digital retail had a higher average
score than bricks-and-clicks retail in six of the eight countries we studied.9 In the US and the UK,
digital retail had a higher high score, higher low score, and higher average score.10 But in India and
China, traditional retail had an equivalent high score, higher low score, and higher average score.11
Traditional retail improved much faster than digital. Globally, a whopping 40% of traditional
retailers CX Index scores rose from 2015 to 2016, while only 1% fell (see Figure 3).12 In contrast,
just 18% of digital retailers improved, while 5% dropped. Traditional retail also had more big
gainers: 10 bricks-and-clicks retailers rose by at least 10 points, with the leading climber, Big
Bazaar, shooting up by 19 points. Meanwhile, Jabong.com was the only digital retailer that went
up by at least 10 points, earning a 17-point jump. Traditional retail showed broad gains in the UK,
China, and India, where at least 80% of retailers in each country added points and none lost points.
In contrast, China was the only country where more than half of digital retailers posted gains.
CX competition in both retail segments tightened. Globally, the spread between the highest-
and lowest-performing brands in both digital and traditional retail narrowed by four points from
2015 to 2016.13 As a result, the competition among online retailers already tighter than that
among their traditional counterparts got very close. In fact, the average difference between the
best and worst digital retailers in the markets we studied was just nine points. Thats four points
narrower than the 13-point spread between the highest- and lowest-scoring traditional retailers.
Digital retail had the emotional advantage. Globally, 57% of customers had emotionally positive
experiences with digital retailers compared with 50% who had emotionally positive experiences
with traditional retailers.14 Digital retail performed best in the US, where 64% of customers had
emotionally positive experiences and just 4% of customers experienced negative emotions.
Traditional retail was strongest in China, where 63% of customers had emotionally positive
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experiences and only 2% had negative emotions. Both digital and traditional retail performed worst
in France. In both industries, about 33% of customers had emotionally positive experiences, while
6% of customers experienced negative emotions.
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US
Canada
Metro
China
UK
Australia
Metro
India
Germany
France
Base: adult customers (18+) of at least one industry who interacted with at least one brand in that
industry between October 2015 and October 2016 (base sizes vary by year and by industry)
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia,
Canada, France, Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016
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FIGURE 3 The Percent Of Scores That Changed In Traditional And Digital Retail Between 2015 And 2016
18% 40%
Digital Traditional
retail retail
Base: online adult customers (18+) of at least one industry who interacted with at least one brand in that
industry between October 2015 and October 2016 (base sizes vary by year)
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia,
Canada, France, Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016
Retail Banking Performs Well Overall As Brands In The Middle Of The Pack See Small Gains
In 2016, the quality of the retail banking experience edged up.15 The rise was fueled by middle-of-the-
pack brands that made modest score improvements. But small as they were, these gains were enough
to cement retail bankings position at the top of our industry rankings in six of the eight countries as
well as achieve a second-place finish in a seventh country.
Top retail banks dominated the global ranks of good and excellent brands. In 2015, banks
made up 21% of the brands with good or better experiences across all industries; that number
grew to 24% in 2016.16 Thats even more impressive considering that banks only make up about
10% of the total number of brands we studied.17
The industry overall showed modest improvement. Country-level average scores remained
some of the highest in any industry, but for the most part, they didnt move up (see Figure 4).18 In
six of the eight countries we studied, average retail banking scores stayed flat from 2015 to 2016.
Although India and the UK had the highest number of banking brands with score improvements,
their country-level averages barely moved: India inched up by just three points, and the UK gained
an even more paltry two points.19
Customers both liked their banks more and disliked them less. On average, 59% of customers
globally felt positive emotions when dealing with retail banks an increase of four percentage
points from 2015.20 This good news wasnt evenly distributed: Banks in China, India, and the UK
saw an increase in the number of emotionally positive experiences; the other five countries had
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a flat or decreasing number of positive experiences. At the same time, the portion of emotionally
negative experiences shrank slightly to 7%. Although that constitutes progress, its still the highest
of any industry we studied. French consumers were once again the least happy; 14% of the
experiences that French banks delivered were emotionally negative.21
FIGURE 4 The Percent Of Scores That Changed In Retail Banking Between 2015 And 2016
18%
Retail
banking
Base: online adult customers (18+) of the retail banking industry who interacted with at least one brand in
that industry between October 2015 and October 2016 (base sizes vary by year)
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia,
Canada, France, Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016
Four of the six countries we studied had insurance industry averages squarely within the OK category.
India set the bar for the lowest industry average score, while the US set the bar for the highest it was
the only country with insurance brands in the good category. Overall, we found that:
Brands remained mostly stagnant. A huge 91% of insurance brands didnt move at all between
2015 and 2016 (see Figure 5).22 In fact, only four brands globally saw significant movement in their
CX Index scores: Two increased by four and six points, while two others decreased by four and
five points. Both brands that lost points were in Australia; one was the leader and the other tied
for last place.
Country averages and ranges stayed flat year over year. The largest change in average country
score was a mere two-point decrease in Australia.23 Whats more, most countries also saw no
change in the range of scores between leaders and laggards. We found significant changes in just
two countries: Chinas score range shrank by four points, and Canadas shrank by three.24
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FIGURE 5 The Percent Of Scores That Changed In Insurance Between 2015 And 2016
5%
91%
CX Index score
improved
CX Index score
didnt change
CX Index score
declined
5%
Insurance
Base: online adult customers (18+) of the insurance industry who interacted with at least one brand in
that industry between October 2015 and October 2016 (base sizes vary by year)
Note: Percentages do not total 100 due to rounding.
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia,
Canada, France, Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016
What It Means
Excellent CX will remain rare even as more brands creep into the good category. Dont expect
Asia Pacifics widespread CX improvements to stimulate major progress around the globe or
even continue in the region. The rise of CX in Asia Pacific will taper off as customer expectations
rise and companies in the region run out of easy CX fixes to make. In the rest of the world, CX
leaders will continue to stagnate as their competitors scores creep up. As a result, less than 0.5%
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of brands globally will achieve CX Index scores in the excellent category over the next two years.
At the same time, the number of scores in the good bracket will grow modestly as more firms rise
up from the OK category.
Traditional retail will overtake digital retail. As traditional retail continues its widespread push for
better CX, brands that feel the urgency will improve while those that lag will die off. Meanwhile, digital
retailers will remain relatively complacent. This means that within two years, traditional retail will
provide better customer experiences on average than digital retail. Expect to see traditional retail take
the lead first in the UK, US, and Australia, where brands like Argos and Best Buy have the strongest
momentum. Look for the race to remain close in China and India, where traditional retailers like IKEA
and Best Price will struggle to keep their slim lead over digital leaders like VIPShop.
Retail banks will provide indistinguishable CX. CX leaders will stall at the top, while middle-
tier and lagging brands will slowly improve. As a result, the differences between most retail
banking experiences will blur. As banks hit a wall and become unable to make more meaningful
improvements to the quality of their customer experience, some will revert to price-based
competition. Only those that can create personal and emotionally resonant experiences will
become differentiated leaders or, in the case of current leaders like Navy Federal Credit Union,
hold on to their top spots.
Breakout stars will make a name for themselves in insurance. The insurance industry is ripe
for disruption. In mature insurance markets like the US and UK where commoditization has taken
hold, larger brands will try to buy differentiation by acquiring sets of small players that specialize
in different segments. These traditional insurers will only succeed if they can scale the innovations
that companies like Lemonade or Cuvva bring to home and car insurance, respectively. Most will
fail along the way, but the few that succeed will see big improvements to their CX Index scores.
Companies in China and India, where insurance markets are still immature, will differentiate by
figuring out how to attract the underinsured but not without encountering some rough seas.
Insurance companies will clamor for first-time Indian customers thrust into the formal financial
sector by demonetization but will do so at a cost to experience quality. Scores will lag for a few
years while insurers figure out how to best serve these new low-income customers.
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Supplemental Material
Survey Methodology
For its Forrester Data Customer Experience Index Online Survey, Australia Consumers 2016, Forrester
conducted an online survey fielded in May and June 2016 of 8,982 individuals ages 18 and older
in Australia. For results based on a randomly chosen sample of this size (N = 8,982), there is 95%
confidence that the results have a statistical precision of plus or minus 0.77% of what they would be if
the entire population of Australia online individuals (defined as those online weekly or more often) ages
18 and older had been surveyed. The final data set was stacked by brand (34 Australia brands) and
weighted by age and gender to represent 17,475 weighted respondents answering for all brands.
For its Forrester Data Customer Experience Index Online Survey, Canada Consumers 2016, Forrester
conducted an online survey fielded in March through June 2016 of 74,379 individuals ages 18 to 88
in Canada. For results based on a randomly chosen sample of this size (N = 74,379), there is 95%
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confidence that the results have a statistical precision of plus or minus 0.01% of what they would be
if the entire population of Canada adults who are online weekly or more often had been surveyed.
The final data set was stacked by brand (193 Canada brands) and weighted by age, gender, region,
income, and broadband adoption to represent 141,658 weighted respondents answering for all brands.
For its Forrester Data Customer Experience Index Online Survey, China Consumers 2016, Forrester
conducted an online survey fielded in May and June 2016 of 9,009 individuals ages 18 and older
in metropolitan China (cities of Beijing, Chengdu, Dalian, Guangzhou, Nanjing, Ningbo, Shanghai,
Shenyang, Suzhou, Wuhan, Wuxi, and Xian). For results based on a randomly chosen sample of this
size (N = 9,009), there is 95% confidence that the results have a statistical precision of plus or minus
0.77%of what they would be if the entire population of metropolitan China online individuals (defined
as those online weekly or more often) ages 18 and older had been surveyed. The final data set was
stacked by brand (36 China brands) and weighted by age and gender to represent 18,018 weighted
respondents answering for all brands. The data was also weighted by income level in the cities of
Beijing, Chengdu, Guangzhou, Nanjing, Shanghai, Shenyang, Wuhan, and Xian.
For its Forrester Data Customer Experience Index Online Survey, France Consumers 2016, Forrester
conducted an online survey fielded in May through June 2016 of 9,038 individuals ages 16 and older
in France. For results based on a randomly chosen sample of this size (N = 9,038), there is 95%
confidence that the results have a statistical precision of plus or minus 0.76% of what they would be if
the entire population of French online individuals (defined as those online weekly or more often) ages
16 and older had been surveyed. The final data set was stacked by brand (34 brands in France) and
weighted by age and gender to represent 17,698 weighted respondents answering for all brands.
For its Forrester Data Customer Experience Index Online Survey, Germany Consumers 2016, Forrester
conducted an online survey fielded in May through June 2016 of 9,088 individuals ages 16 and older
in Germany. For results based on a randomly chosen sample of this size (N = 9,038), there is 95%
confidence that the results have a statistical precision of plus or minus 0.76% of what they would be if
the entire population of German online individuals (defined as those online weekly or more often) ages
16 and older had been surveyed. The final data set was stacked by brand (35 brands in Germany) and
weighted by age and gender to represent 17,892 weighted respondents answering for all brands.
For its Forrester Data Customer Experience Index Online Survey, India Consumers 2016, Forrester
conducted an online survey fielded in May through July 2016 of 18,033 individuals ages 18 and older
in metropolitan India (cities of Ahmedabad, Bengaluru, Chennai, Hyderabad, Jaipur, Kolkata, Mumbai,
New Delhi, and Pune). For results based on a randomly chosen sample of this size (N = 18,033), there
is 95% confidence that the results have a statistical precision of plus or minus 0.23% of what they
would be if the entire population of metropolitan India online individuals (defined as those online weekly
or more often) ages 18 and older had been surveyed. The final data set was stacked by brand (72
brands in India) and weighted by age and gender to represent 36,066 weighted respondents answering
for all brands. The data was also weighted by income level in the cities of Ahmedabad, Bengaluru,
Chennai, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi, and Pune.
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For its Forrester Data Customer Experience Index Online Survey, UK Consumers 2016, Forrester
conducted an online survey fielded in May through July 2016 of 14,156 individuals ages 16 and older
in the UK. For results based on a randomly chosen sample of this size (N = 14,156), there is 95%
confidence that the results have a statistical precision of plus or minus 0.45% of what they would be if
the entire population of the UK online individuals (defined as those online weekly or more often) ages
16 and older had been surveyed. The final data set was stacked by brand (56 UK brands) and weighted
by age and gender to represent 28,312 weighted respondents answering for all brands.
For its Forrester Data Customer Experience Index Online Survey, US Consumers 2016, Forrester
conducted an online survey fielded in February through May 2016 of 122,500 individuals ages 18 to
88 in the US. For results based on a randomly chosen sample of this size (N = 122,500), there is 95%
confidence that the results have a statistical precision of plus or minus 0.01% of what they would be
if the entire population of US adults who are online weekly or more often had been surveyed. The final
data set was stacked by brand (319 US brands) and weighted by age, gender, region, income, and
broadband adoption to represent 242,494 weighted respondents answering for all brands.
(Note: Weighted sample sizes can be different from the actual number of respondents to account for
individuals generally underrepresented in online panels.) Please note that respondents who participate
in online surveys generally have more experience with the internet and feel more comfortable
transacting online.
Forresters CX Index helps companies do three things. It: 1) arms you with a deep and actionable
understanding of the quality of your customer experience; 2) provides competitive benchmark
data so you know how you stack up against your peers; and 3) enables the ability to model which
improvements will have the biggest impact on revenue and other key business metrics.
Forrester collects CX Index data on more than 800 brands in 17 industries across eight key markets
(Australia, Canada, China, France, Germany, India, the UK, and the US). If you wish to find out more
details regarding Forresters CX Index data and services or how you can leverage the methodology,
please contact your account manager or data@forrester.com.
External citations, unauthorized reproduction, and distribution of any parts of this report are prohibited
without prior written consent from Forrester.
Endnotes
See the Forrester report The US Customer Experience Index, 2016.
1
See the Forrester report The Canada Customer Experience Index, 2016.
2
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In the 2016 Canada CX Index, 23 scores rose and 30 fell, with only 12 brands gaining at least five points and just 12
3
companies losing at least five points. Even the biggest gainer across all industries rose by only eight points and the
biggest loser fell by just seven points. For a complete analysis of trends and drivers in Canadian CX, see the Forrester
report The Canada Customer Experience Index, 2016.
See the Forrester report The Germany Customer Experience Index, 2016.
5
See the Forrester report The France Customer Experience Index, 2016.
6
See the Forrester report The India Customer Experience Index, 2016.
7
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia, Canada, France,
8
Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016.
Source: Forrester Data Customer Experience Index Online Survey, UK Consumers 2016 and Forrester Data Customer
9
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Source: Forrester Data Customer Experience Index Online Survey, Canada Consumers 2016 and Forrester Data
24
Source: Forrester Data Customer Experience Index Online Surveys, with consumers from Australia, Canada, France,
25
Germany, the UK, and the US in 2016 and from China and India in 2015 and 2016.
Source: Forrester Data Customer Experience Index Online Survey, Australia Consumers 2016 and Forrester Data
26
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