Aussie organisations not transforming enough for customer experience excellence: Forrester

80 per cent of Australian companies have centralised customer experience teams but most sit in a silo

Michael Barnes, Forrester
Michael Barnes, Forrester

New research from Forrester has found 98 per cent of Australian organisations see customer experience as a top 10 strategic priority, yet most are only embracing small step changes rather than transformation.

The new survey comes off the back of global research undertaken by Forrester on the importance of customer experience in business, which found 92 per cent of companies rate it as one of their top strategies yet only half believe they’re doing a good job of it.

Locally, 50 per cent of Australian organisations rate customer experience as a top strategic priority for their business, with a further 48 per cent listing it as a top 10 area of focus.

In addition, 72 per cent currently have an executive in charge of improvements in customer experience across products and channels, and 66 per cent work for a CEO advocating its importance across the organisation.

Across respondents, 80 per cent have a centralised customer experience team, and 35 per cent have at least 10 staff in these teams. Seventy-three per cent are spending the same or more on customer experience programs in the next 12 months.

Despite this, Forrester found most Australian organisations focus on incremental change, rather than large-scale transformation. While there are increasing numbers of customer experience teams being put in place, most are operating as a silo rather than as part of a company-wide program linked to broader business strategies.

In its previous global research, Forrester also found less than half of organisations believe they are delivering a good customer experience, let alone an excellent one.

“This is not good enough,” Forrester vice-president and research director, Michael Barnes, told attendees at the analyst group’s Summit for Marketing and Strategy Professionals in Sydney. “We need to improve how we systematically measure but also improve customer experiences.”

The Australian figures were based on a survey of 62 customer experience leaders in advance of Forrester’s first Summit for Marketing and Strategy Professionals in Sydney.

During his opening address at the summit, Barnes said Australian organisations need to take a closer, harder look at their level of maturity and identify areas they need to put more emphasis on in order to truly champion customer experiences.

He also stressed the importance of measurement in understanding how an organisation is progressing down the customer experience path, and pointed to Forrester’s three-tiered pyramid as a way of coming to terms with what needs to be done.

Describing the analyst group’s pyramid as akin to Maslow’s Hierarchy of Needs, Barnes said the base level of customer experience is about being useful and meeting a consumer’s needs as a buyer. The second stage is making interactions with a brand easy, while the third and top stage is providing enjoyable experiences.

“Success [in the age of the customer] is going to be based on our ability to be relevant , and to systematically understand and serve customers,” Barnes said.

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

More Brand Posts

As an ex employee of 4 years during the growth of the company, I can say that the new management has benefitted the company tremendously,...

Harry

How JobAdder's CMO is bringing the human truth to B2B rebranding

Read more

So many words, so little business benefit.

Brett Iredale

How JobAdder's CMO is bringing the human truth to B2B rebranding

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

Ms Bennett joined in 2017 yet this article states she waited until late 2020 to initiate a project to update the website. The solution t...

Munstar Cook

How Super SA put customers at the heart of its digital transformation

Read more

Its a informative post thanks for sharing

Galaxy Education

The people and process smarts needed to excel in omnichannel retailing

Read more

Blog Posts

The real cost of doing customer service badly

Headlines of unacceptable waiting times to get onto Qantas will have many brand owners, chief executives and boards thinking, ‘thank goodness that is not us’. But Qantas isn’t the only company being inundated with calls with no reprieve in sight, it’s just dominating headlines right now.

Kath Blackham

CEO, Versa

The 15 most-common persuasion mistakes

As workers across the country slowly head back to the office, many of us might have forgotten how to deal with one another in person and the best way to persuade someone in a working environment.

Michelle Bowden

Author, consultant

5 commonly missed opportunities when marketing to multicultural customers

The latest census data shows Australia has become a majority migrant nation for the first time. According to the new national data, more than 50 per cent of residents were born overseas or have a migrant parent.

Mark Saba

Founder and CEO, Lexigo

Sign in