Customers approach organisations with unique expectations and motivations that shape their perception. And these expectations are constantly changing, based on previous experiences inside the industry and other industries, digitally and in person. Customers’ ultimate satisfaction or irritation of an organisation and its services stem from their overall impression of end-to-end journeys. Creating a customer-centric organisation isn’t easy. But only customer-obsessed companies will thrive in the age of the customer. To achieve that obsession, companies need to understand customers’ evolving attitudes and behaviours, and their overall impression and view of the service delivery. In this keynote Reineke shares the outcome of extensive research about modern customers' evolving expectations. She highlights how to identify core motivations that predict how customers will perceive certain experiences, and how to improve experiences to satisfy these commonly called 'empowered customers’.

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Empowered Customers Need Your
Attention
Reineke Reitsma,
VP Research Director, Data Insights Forrester Research
October 5, 2018

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The gap is widening
between leaders and
those incrementing
forward
Customers are
making the rules
The combination of
empowered customers
and digital progress
redefines markets and
creates existential risk for
companies

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Innovations change expectations
Lower barriers to switch
Past behaviors don’t predict future interest
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Source: https://www.weforum.org/agenda/2018/07/digital-technology-changing-childhood-smartphone

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Willingness to
experiment:
consumers are comfortable with new
brands and products
Digital/physical integration:
consumers expect digital seamlessness
Information
Savviness:
consumers are sharp when finding
and sharing brand or product
information
Device
Usage:
consumers rely on devices to
accomplish everyday tasks
Self-efficacy:
consumers want to ensure the best
possible experience for themselves

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Forrester’s
Empowered Customer Segmentation
Progressive
Pioneers
Savvy
Seekers
Convenience
Conformers
Settled
Survivors
Reserved
Resisters
Most Empowered Least Empowered
Least Forgiving Most Forgiving
Highest Churn More Loyal

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European consumers are mostly Convenient
Conformers
27%
20%
33%
9% 12%
Progressive
Pioneers
Savvy
Seekers
Convenience
Conformers
Settled
Survivors
Reserved
Resisters
Base: 29,607 European online adults; Source: Forrester Data Consumer Technographics® Global Online Benchmark Survey, 2018

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The most empowered
customers are highly
sensitive to CX.

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Empowered customers are sensitive to different
aspects of the experience
EMOTION is the strongest
driver of CX quality
EASE is the strongest
driver of CX quality
Base: US online adults; Source: Forrester’s CX Index Data, 2017 (US)
Convenience ConformersProgressive Pioneers Reserved Resisters

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How do you continue to appeal to
empowered customers in a marketplace
that’s crowded with alternatives?

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CUSTOMER OBSESSION

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Companies that understand
customers’ needs and wants,
and design products, services,
and experiences to match, are
truly customer-obsessed.

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Companies that understand
customers’ needs and wants,
and design products, services,
and experiences to match, are
truly customer-obsessed.

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Values matter

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Source: Forrester’s ConsumerVoices Market Research Online Community, 2017 (US)
“Brands have to take a side because
the public expects them to. The days
of being neutral are over.” – Male, Age 25-34
“If you’re not willing to show what you
stand for, then perhaps you should
not be standing for it.” – Female, Age 45-54

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For example: Microsoft Special Olympics
Source: https://www.microsoft.com/inculture/special-olympics/

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The impact of company values (social impact) on
consumer behavior varies by industry
Base: 5,005 US online adults; Source: Forrester Data Consumer Technographics® North American Omnibus Survey, 2017
Consumers do the following when they find a brand that stands for the values they care about:

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Companies that understand
customers’ needs and wants,
and design products, services,
and experiences to match, are
truly customer-obsessed.

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Base: 8,951 global business and technology decision-makers and influencers company size 100million+
Source: Forrester’s Global Business Techno Priorities and Journey Survey, 2018
9%

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Source: http://fortune.com/2018/07/26/anheuser-busch-earnings-non-alcohol-beverages-officer/?_lrsc=b30fc690-fabc-42e5-ba41-74dd588737cd
Source: https://www.youtube.com/watch?v=ZvIaZYzxJ1w

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Companies that understand
customers’ needs and wants,
and design products, services,
and experiences to match, are
truly customer-obsessed.

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Source: Forrester report ‘’ The Customer Obsession Assessment’
Definitions of customer obsession levels
Understand and appreciate the value of good customer
experiences but emphasize cost reduction and product and
service improvement more
Limited resources dedicated to improving customer experience,
and limited customer understanding
In this companies, there has been a cultural shift where doing
what is right for the customer and colleagues overrides
"following the rules"
These companies uniformly believe customer obsession is
critical to their competitive strategy – and focus on
transformational experiences

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Customer obsession drives the bottom line
Source: Forrester report ‘’ The Customer-Obsessed Enterprise’
Higher growth
performance
Higher customer
satisfaction

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Is your organization ready to
serve empowered customers?

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Thank you
© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Reineke Reitsma
rreitsma@forrester.com
@rreitsma