2

This is a summary of the findings from a global study on customer experience (CX), conducted in January thru March, 2015. It includes responses from 2784

consumers from three generations and across nine countries (UK, US, Brazil, Germany, Sweden,

South Africa, China, Japan and Australia).

The purpose of this study is to explore where the single or most prominent points of CX failure and CX

success happen with customers and the impacts to the business.

3

This Study Explored the Following Questions

When consumers are asked about major

customer experience failures:

○ Where does customer experience go wrong?

○ Can you ever win back ex-customers?

○ What gets customers to re-commit?

○ What happens when a customer experiences

a major failure?

○ What happens when brands get CX right?

4

76% of consumers’

“worst CX failure”

occurred within the

last two years

Only 55% of the

consumers who

recalled a CX failure

also remembered a

success

When 2784 consumers were asked about their most major customer experience failure in the last 10 years…

5

Where Does Customer Experience

Go Wrong (or Right)?

6

19% 18%

12%

7% 6% 6% 5% 4% 4%

2%

Communicationsservices provider(i.e. Cable / TV /mobile / internetservice provider)

Electronics(televisions,

mobile phones,video games,

etc)

A retail store(any non-grocery

retailer youwould visit in-

person)

Online retailer (Amazon, ETC…)

Automotive (car,truck, other

vehicle OR anyservices related

to them)

Home /Residential

services(applianceservicing,

plumbing, etc.)

Groceries andPackaged goods

Banking &financial services

(not includingInsurance)

Restaurant ProfessionalServices

Nearly 40% of consumers’

“worst CX experiences” have occurred in

industries that keep consumers in touch with

the digital world (and have more day-to-day

touchpoints), thus increasing the opportunity

for potential failure

The Worst Offenders for CX Failure

Customer journey stage

where the biggest CX

SUCCESS occurred ….

Customer journey stage

where the biggest CX

FAILURE occurred …

Comparing the Primary Points of Success and Failure

8% 22% 12% 28% 17% 12%

0% 20% 40% 60% 80% 100%

1

5% 16% 17% 23% 32% 6%

0% 20% 40% 60% 80% 100%

1

Customer Journey

Post-purchase, where customers

reach out for support is the

biggest difference between a CX

fail and a success.

• 2x more failures occur in post-

sale support than successes.

1

The biggest difference-maker for

creating fantastic CX is to impress in

the shopping / purchase stage.

• Almost 1.5x more successes

happen in the pre-purchase stage.

2 3 Delighting your loyalists.

• 2x more successes happen

in the re-purchase stage.

Pre-

purchase

Shopping/

Purchase

Initial

Impressions

Prod / Svc

Exp.

Post-Sale

Support

Re-

Purchase

Pre-

purchase

Shopping/

Purchase

Initial

Impressions

Prod / Svc

Exp.

Post-Sale

Support

Re-

Purchase

4%

8%

10%

10%

11%

11%

15%

19%

26%

26%

26%

26%

29%

30%

31%

35%

0% 20% 40%

They kept contacting me after I chose to stop doing…

Heard of or observed poor treatment of other customers

Poor product design

They lost / ignored my customer status and instead…

Product / service difficult to use

Service outage

Completely unresponsive - never heard back

Company policies that are not customer-centric

Dishonest / unethical behaviour

Poor product quality

Product / service did not work as advertised

Customer service rude / offensive

Was given inaccurate or conflicting information

Customer service un-knowledgeable / poorly trained

Customer service not empowered to help properly

Long waits / Poor response times

Human Touch

Business Process

Product-related

The most cited

reasons for

consumers’ “worst

CX failure” relate to

business process

and customer service

agent failure

Reasons for CX Failure

4%

8%

10%

10%

11%

12%

12%

13%

14%

16%

19%

19%

24%

25%

27%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Heard of or observed other customers being treated well

Good up-time / No Service outages

Great product design

Provided an unexpected, but welcome follow-up…

Always provided with accurate, consistent information

Product / service worked as advertised

Product / service easy to use

Company policies that are very customer-centric

I always received a response when I wanted one

Unexpectedly gave me some kind of preferential…

No long waits / Good response times

Very honest / Ethical business practices

Customer service empowered to help properly

Great product quality

Customer service very knowledgable – well-trained

Customer service pleasant / helpful

Human Touch

Business Process

Product-related

Most CX triumphs

arise from

customer service

agent interaction

Reasons for CX Success

10

Can You Ever

Win Back

Ex-Customers?

Do Customers Want to Get Back Together with Brands that Jilted Them?

But the younger generations are less likely to pursue a

resolution…and more likely to get up and walk away.

82%

18%

Yes No

4 in 5 attempt to resolve

the CX failure

73% 82% 84% 87%

27% 18% 16% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

YOUNGMILLENNIAL

OLDERMILLENNIAL

GENX BOOMER

No

Yes

82% of customers experiencing a “worst CX” are interested in fixing the problem

The older the customer, the more likely they are to want reconciliation

20%

80%

Yes, it’s possible.

No, it will neverhappen again.

In reality, the odds are

stacked against you being

able to recover this customer:

• 1 in 5 would consider doing business

with you again.

• 4 in 5 will never come back.

If they do return…

they won’t treat you the same.

• 59% will have less loyalty toward you.

• 1/3 will return to status quo

• Just 7% will have increased loyalty

30%

29%

34%

5%

2%

0% 5% 10%15%20%25%30%35%40%

I’m MUCH less loyal than ever before – I’m actively looking for …

I’m a little less loyal than before – it wouldn’t take a lot for me to go …

Nothing has changed.

I’m a little more loyal than before – it would take a lot for me to go …

I’m MUCH more loyal than ever before – I like what I get from …

Of the customers that

walk away after a fail,

there’s only a 20%

chance of winning

them back again.

As for the customers

you are able to keep,

59% will be less loyal

The Reality of Winning a Customer Back

13 13 13

What Gets Customers to

Re-commit?

What customers say will win them back…

11%

19%

24%

26%

30%

35%

35%

0% 10% 20% 30% 40%

Ask me for my recommendedaction.

Give me credits, loyalty points,free upgrades, or othercompensationfor future…

Provide a genuine, personalizedapology

Give me discounts, credits,rebates on products / serviceswhere I had experienced the…

Show me how they had improvedtheir business as a result of my

experience.

Own the failure / admit theirmistakes

Nothing – I still wouldn’t go back

8%

9%

22%

21%

8%

29%

0% 10% 20% 30% 40%

They asked me for my recommended action.

They gave me credits, loyalty points,freeupgrades, or other compensationfor future

products / services

I received a genuine, personalized apology

They gave me discounts, credits, rebates onproducts / services where I had experienced

the failure

They showed me how they had improved theirbusiness as a result of my experience.

They owned the failure / admitted theirmistakes

…and what actually will win them back.

(among customers who have returned post-failure)

What Customers Say Will Win Them Back and What Will Really Win Them Back

11%

19%

24%

26%

30%

35%

35%

0% 10% 20% 30% 40%

Ask me for my recommendedaction.

Give me credits, loyalty points,free upgrades, or othercompensationfor future…

Provide a genuine, personalizedapology

Give me discounts, credits,rebates on products / serviceswhere I had experienced the…

Show me how they had improvedtheir business as a result of my

experience.

Own the failure / admit theirmistakes

Nothing – I still wouldn’t go back

What customers say will win them back…

8%

9%

22%

21%

8%

29%

0% 10% 20% 30% 40%

They asked me for my recommended action.

They gave me credits, loyalty points,freeupgrades, or other compensationfor future

products / services

I received a genuine, personalized apology

They gave me discounts, credits, rebates onproducts / services where I had experienced

the failure

They showed me how they had improved theirbusiness as a result of my experience.

They owned the failure / admitted theirmistakes

…and what actually will win them back.

(among customers who have returned post-failure)

What Customers Say Will Win Them Back and What Will Really Win Them Back

30% of returning customers say they want to

see their experience help the brand to

change; only 8% admit that this actually

worked.

19% of returning customers say they want

compensation for future purchases; only 9%

admit that this actually worked.

By a factor of 3x, customers want: an apology, admission of

failure, and at least some money back

(on THIS purchase – not future purchases)

16

What Happens When

Customers Experience a

Major CX Failure?

17

“Of the people you fail,

you can expect to lose

65% of the revenue

they contributed the

year after the fail.”

24%

30%

46%

Minimal Cost: Less than an hour; and/or $20

Moderate Cost: 1-8 hours; and $20 - $100

Considerable Cost: Greater than 1 day; greater than "$100"

The Cost to the Consumer for Their “Worst CX Failure”

24% of “worst CX”

failures cost the

customer less than

$20* and less than

an hour

Less than the cost

of lunch!

*Currency converted to local

equivalent for each country

surveyed

The Cost to the Consumer for Their “Worst CX Failure” by Country

35% 38%

44%

36%

46% 51%

56% 55% 50%

0%

25%

50%

75%

US Germany Sweden UK Australia Japan South Africa Brazil China

MINOR MEDIUM MAJOR

In the US & Europe, a failure is a failure – the bar is low

To customers in South African, Brazil and China, the

size of the failure matters Minimal Moderate Considerable

More Developed Economies are More “Petty” and Have Higher CX Expectations

The richer the

consumer base,

the more likely

they are to be

offended by

minimal CX

failures

Ave

rag

e I

nc

om

e p

er

Pe

rso

n,

Inte

rnati

on

al D

oll

ars

, 2013

Diffe

ren

ce

be

twee

n M

ajo

r

an

d M

ino

r CX

Fa

ilure

s

21

36% 22% 22% 17%

32%

35% 30%

26%

32% 42% 48%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Young Millennials Older Millennials Gen X Boomer

MINOR MEDIUM MAJOR

Younger generations are

lowering the bar on what

really constitutes a

“failure”

Only Millennials consider

CX failures with minimal

cost more noteworthy

than those with a

considerable cost

Millennials expect brands

to get the small stuff right

– and impose huge

blame if brands don’t

The Cost to the Consumer for Their “Worst CX Failure” by Generation

Minimal Moderate Considerable

36%

22%

30%

10%

2%

0%

10%

20%

30%

40%

Nothing. Went on as ifnothing changed.

I stopped recommendingthem

I started looking foralternatives, competitors.

I actively disparage themevery chance I got by word-of-

mouth

I actively disparage themevery chance I got through

social media and other onlinepublishing channels.

Passive Active

Indifferent Motivated Toxic

12% of customers experiencing a

CX Failure “go negative”

Responding to CX Failures

64% of customers experiencing a CX Failure stop recommending the

brand, leave or go negative

CX Failure Response by Generation

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Nothing. Went on as if nothingchanged.

I stopped recommending them I started looking for alternatives,competitors.

I actively try to disparage everychance I got by word-of-mouth

I actively try to disparage everychance I got through social

media and other onlinepublishing channels.YOUNG MILLENNIAL OLDER MILLENNIAL GENX BOOMER

Passive Active

1 Younger millennials are most

likely to just do nothing.

2

Boomers are more likely to

disparage by word of mouth.

CX Failure Response by Country

36%

55%

37%

18%

7%

0%

10%

20%

30%

40%

50%

60%

Nothing. Went on as ifnothing changed.

I stopped recommending them I started looking foralternatives, competitors.

I actively try to disparageevery chance I got by word-of-

mouth

I actively try to disparageevery chance I got through

social media and other onlinepublishing channels.

CHINA

JAPAN

GERMANY

SOUTH AFRICA

SWEDEN

US

BRAZIL

AUSTRALIA

UK

1

Sweden, Germany and Japan are content to “grin & bear it.”

• 1/2 of customers that receive a horrible CX do nothing

3

4

Australia and the UK

get disparaging (via

WOM)

5

China, South Africa, Brazil and

Australia actively look to move on

China stops

recommending

2

The UK punishes

you online

0%

5%

10%

15%

20%

25%

30%

CH

INA

JA

PA

N

GE

RM

AN

Y

SO

UT

H A

FR

ICA

SW

ED

EN

US

BR

AZ

IL

AU

ST

RA

LIA

UK

I actively try to disparage every chance I got by word-

of-mouth

I actively try to disparage every chance I got through

social media and other online publishing channels.

Brits are NOT shy about

sharing CX Failures

Countries Most Likely to “Go Viral”

Impact of a Consumer’s Social Footprint

583 618 565

489

1560

0

200

400

600

800

1000

1200

1400

1600

1800

Nothing. Went on as ifnothing changed.

I stopped recommendingthem

I started looking foralternatives, competitors.

I actively try to disparagethem every chance I got

by word-of-mouth

I actively try to disparagethem every chance I gotthrough social media and

other online publishingchannels.

Customers with a bigger social

footprint will broadcast failures more

aggressively

Ave

rag

e S

ocia

l N

etw

ork

Siz

e

Ave

rag

e S

ocia

l N

etw

ork

Siz

e

27

What Happens When You

Get it Right?

28

The Reward for CX Success

2%

27%

33%

44%

45%

46%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

None of the above.

I would follow them in social mediachannels

I would be willing to join a loyalty / VIPprogram

I would be happy to pay more to continueto work with this company.

I would be willing to recommend themonline / write a good online review

I would trust their products and servicesABOVE all other providers

I would recommend them to others (offline)

98% of

customers will

do one or

more of these

positive

activities after

experiencing a

CX success

29

42%

53%

49% 25%

7% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SUCCESS attribution FAILURE attribution

More technology-related

Both human and technologyequally

More human-related

Where Customers Give Credit for Success and Failure

53% of CX failures are attributed to

human customer service agents

42% of CX successes are seen as

joint human/ technology capabilities

Customers see technology as

driving CX wins, and hold people

responsible for CX failures CX failure most

often occurs

with more

human related

experiences

CX Success is

most often

achieved with

the seamless

combination of

humans and

technology

More human-

related

Both human and

technology equally

More technology-

related

Poor product quality 20% 25% 47%

Poor product design 20% 33% 42%

Product / service did not work as advertised 26% 33% 35%

Product / service difficult to use 29% 29% 33%

Service outage 39% 32% 25%

They kept contacting me after I chose to stop doing business with them 46% 28% 17%

Customer service not empowered to help properly 56% 29% 9%

Company policies that are not customer-centric 58% 29% 6%

Was given inaccurate or conflicting information 62% 27% 8%

Long waits / Poor response times 63% 26% 6%

Heard of or observed poor treatment of other customers 64% 21% 8%

They lost / ignored my customer status and instead treated me like a

first-time customer 65% 23% 8%

Customer service un-knowledgeable / poorly trained 70% 20% 6%

Completely unresponsive - never heard back 72% 20% 6%

Dishonest / unethical behaviour 79% 12% 5%

Customer service rude / offensive 85% 8% 4%

Average Failure Attribution 53% 25% 17%

Much of what

brands

view as

“CX system

capabilities”

are seen by

customers as

human

touchpoints

Humans vs. Technology: Where Customers Attribute Blame

31

Where Are the Top

Takeaways to Drive

CX Success?

Top Takeaways for Driving CX Success

1 Minimize the biggest areas for failure

Start by solving:

1. Long wait / response times

2. Poorly trained customer service representatives

3. Lack of empowered customer service representatives

4. Inaccurate / conflicting information available to customers

Top Takeaways for Driving CX Success

2 Partner with your customers on resolution

When a failure does happen, your customers are not ready

to throw in the towel.

Partner with them and push to a resolution.

Top Takeaways for Driving CX Success

3 Leverage technology to optimize for

CX success

While humans get more of the blame for failures,

technology gets more of the credit for successes.

Audit your systems to ensure your technology and people

strategies are working well together to deliver the best

experiences.

35

Learn more at:

www.sdl.com/cx-wakeup