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Forrester’s US 2023 Customer Experience Index: Brands’ CX Quality Falls For A Second Consecutive Year

By: via Business Wire

While four out of five business leaders say improving CX is a high priority, only 6% of brands see an increase in their CX quality

According to Forrester’s (Nasdaq: FORR) US Customer Experience Index (CX Index™) rankings, CX quality among brands in the US declined for an unprecedented second year in a row. Despite more than 80% of business leaders indicating that improving CX is a high priority, just 6% of brands saw a significant increase in 2023, compared to 10% the year prior.

Luxury auto manufacturers and retailers are the only industries to significantly improve their overall CX quality this year. Brands from both industries, including Infiniti, Lincoln, and Tractor Supply, joined the 2023 list of elite brands — the top 5% of brands in the entire CX Index. Seven of the 11 elite brands are repeats from 2022: Chewy.com, Etsy, HEB, Navy Federal Credit Union, Trader Joe’s, and USAA (for both credit card issuers and auto/home insurers).

Emotion remains a key driver for delivering high levels of CX performance. In 2023, elite brands delivered customer experiences that evoked, on average, 29 positive emotions — including feeling happy, valued, and appreciated — for each negative emotion.

“The past 12 months have been unpredictable for consumers and brands in the US, especially as brands struggle to sustain CX quality levels achieved during the pandemic,” said Rick Parrish, VP and research director at Forrester. “Despite the continued drop in CX quality, the silver lining is that more organizations are aware that they need to prioritize their customers’ needs to drive business growth. When companies invest in improving their CX quality, they receive many benefits, including higher customer loyalty, retention, and devotion.”

Conducted for the eighth year in a row, Forrester’s Customer Experience Benchmark Survey, which collects data to calculate Forrester CX Index scores, is based on more than 96,000 US customers across 221 brands and 13 industries. Forrester’s proprietary Customer Experience Index methodology provides the data and insights needed to assess CX quality, understand how CX impacts loyalty intentions, and prioritize improvements that drive revenue. 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.

Forrester’s CX Index rankings and results reports are accessible within the Forrester Decisions portfolio of research services. Clients of Forrester Decisions services for Customer Experience, B2C Marketing Executives, and Digital Business & Strategy have access to the CX Index Extended Data Benchmark to help prioritize improvements based on industrywide trends and impact on customer loyalty.

Resources:

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; 70 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

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