A positive customer experience is only half the battle in gaining consumer loyalty, according to a new study.
According to Forrester's US 2018 Customer Experience Index, making customers happy is not the single best way to achieve loyalty – feeling appreciated and confident are equally as important in the retail industry.
About 86% of multichannel shoppers and 87% of digital shoppers who feel appreciated intend to spend more with the brand. This is a clear indication as to why understanding which emotions evoke loyalty matters.
"Few industries have felt disruption like retail, and many are choosing the wrong path forward because they're not focusing on the drivers that improve customer experience where it counts," Forrester Chief Research and Product Officer Cliff Condon said. "CX is directly linked to driving revenue – Forrester estimates that a 1-point improvement in a big-box retailer's CX Index score can lead to an incremental $244 million in revenue – so it's vital for retailers to identify what consumers want and invest in those elements that drive loyalty. Only then will retailers see an improvement in the CX quality that their customers now demand."
Based on a survey of more than 110,000 US online adult consumers, Forrester's CX Index measures and ranks nearly 300 US brands across 19 industries to identify how well a brand's customer experience strengthens the loyalty of its customers. Of the 287 US brands ranked in 2018, 42 multichannel and 11 digital retailers were analyzed to determine how customers perceive their experiences and how CX drives loyalty.
Most notably, newcomer Trader Joe's claimed the top spot in multichannel retail, thanks to its ability to provide the most positive experiences of all 287 brands ranked. Costco Wholesale and Neiman Marcus also placed second and third on the multichannel list, while Home Shopping Network, QVC and Zappos.com were the three leaders for digital retailers.