Superior digital customer experience spurs commercial rewards

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Firms that tie business operations and customer experience enjoy greater benefits.

The wide range of human emotions makes a successful one-size-fits-all digital experience elusive. However, there is growing evidence that digital customer experience (DCX) translates into commercial rewards for those firms committed to improving customer satisfaction through digital programs.

An American luxury retailer, Nordstrom, offers its customers digital services such as mobile checkout, the ability to text salespeople, and a personalized digital clothing service. As a result of its efforts in digital, Nordstrom reported e-commerce sales of over $2.5 billion, representing nearly a quarter of its full-price sales for FY 2016.[1]

To understand how some firms leverage positive DCX for commercial gain, Capgemini Digital Transformation Institute reached out to executives and consumers in a variety of global business sectors, including utilities, consumer products, retail banking, retail, and internet-based services.[2]

The 2017 survey revealed that, across countries and sectors, more than 80% of customers were willing to pay more for a better digital customer experience, with approximately 9% willing to increase their spending by more than half.[3]

DCX linked to firm performance

Capgemini’s Digital Customer Experience (DCX) Index measures the maturity of a commercial organization’s DCX through questions such as:

  • Do customers experience a seamless purchase process?
  • Are loyalty and referral programs available via digital channels?
  • Are the firm’s business operations and customer experience processes aligned?

The more DCX practices an organization adopts, the higher the index score. To calculate a company’s DCX score, weighted grades are assigned for adoption of complex practices along with consumer and executive composite scores regarding practices’ implementation.

Capgemini Digital Transformation Institute analysis determined that the DCX Index positively relates to Net Promoter ScoresSM (NPS®) and to consumers’ willingness to spend more if offered a better customer experience.[4]

Analysis of the 10 companies with the highest DCX scores revealed that DCX directly correlates with a firm’s Net Promoter Scores. Moreover, DCX leaders outperformed laggards in stock valuation, with a 16% increase in share prices over five years versus a 6% increase for the bottom-10 DCX scoring firms.

DCX drives customer willingness to spend

Capgemini Digital Transformation Institute analysis found that the DCX Index and customer willingness to spend were directly proportional, with a one-point increase in the DCX index relating to a 0.64% increase in consumer willingness to spend more. Similarly, a one-point increase in the DCX index correlated to a 4.7 increase in a company’s Net Promoter Scores, which gave a 60% advantage to the leaders over the laggards in terms of customer willingness to spend.

Firms that tie business operations and customer experience enjoy greater benefits

Firms that link their business operations with customer experience reap greater benefits regarding Net Promoter Scores and positive customer perception. In fact, 61% of 122 global companies polled in the survey loosely linked their operations to NPS®, 6% monitored their customer experience performance daily to create alignment between business operations and NPS® performance, and about 33% did not regularly track customer experience.

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[1] Nordstrom, “Nordstrom Fourth Quarter and Fiscal 2016 Earnings Exceeded Expectations,” February 2017; Fortune, “Nordstrom’s multi-billion dollar plan for e-commerce domination,” February, 2015; Forbes, “Nordstrom Is Top Performer On Social Media, New Ranking Of U.S. Retailers Reveals,” November 2015.

[2] Capgemini Digital Transformation InstituteCapgemini’s in-house research center.

[3] Consumers in the following countries were polled: Australia, China, France, India, Germany, Netherlands, United Kingdom, United States.

[4] Net Promoter Score (NPS®) is an industry-standard metric for measuring customer loyalty and satisfaction. It is calculated as a difference between a firm’s percentage of promoters and its percentage of detractors. Promoters and detractors are ascertained based on their response to a single question: How likely is it that you would recommend [brand] to a friend or a colleague? https://www.netpromoter.com/know/, Net Promoter, NPS®, and the NPS®-related emoticons are registered service marks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

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