2012 BENCHMARKING REPORT

From March 26 to 28, 2012, the team at the Next Generation CustomerExperience Event presented a benchmarking questionnaire to its audience of more than 200 attendees. The goal of the session was to provideparticipants with a better understanding of how their organizationsstacked up against the rest of the industry regarding length of time spentin customer experience roles, level of investment into customer experiencedepartments, challenges customer experience professionals face, ability to get funding for customer experience initiatives, KPI’s and more.

Approximately 60 people responded to the comprehensive survey. Theirroles ranged from Vice President of Customer Experience to Director ofCustomer Insights to Vice President of Marketing and more, and theycame from companies as diverse as Boeing, Disney and Wells Fargo.

Executives across verticals shared valuable insight into their customerexperience departments and business operations to create an effectivebenchmark for the industry.

See how your firm compares to your peers and competitors by viewing the results throughout this report.

NEXT GENERATIONCUSTOMER EXPERIENCEBENCHMARKING REPORT

2012

“A must for any company looking to establish aconsistent, multi-channel strategy and cultureof exceptional customer experience.”Rahel Ben-Cnaan, Zumba Fitness

The 2012 Next Generation Customer Experience Benchmarking Report2

38% Other

25% VP/Director Customer Experience

13% eCommerce/eMarketing (VP, Director, etc)

10% Customer Insights (VP, Director, etc)

7% Customer Support (VP, Director, etc)

5% Chief Marketing Officer

5% VP, Marketing

17% < 1 Year

34% 1-3 Years

29% 3-5 Years

11% 5-8 Years

8% > 8 Years

BENCHMARKING SURVEY

WHAT IS YOUR CURRENT JOB TITLE?

VP/DIRECTORCUSTOMEREXPERIENCE

< 1 YEAR 1-3 YEARS 3-5 YEARS 5-8 YEARS > 8 YEARS

25%

HAVE BEEN IN THEIRCURRENT ROLE BETWEEN1 AND 3 YEARS

34%

1

2 HOW LONG HAVE YOU BEEN IN YOUR CURRENT ROLE?

3 The 2012 Next Generation Customer Experience Benchmarking Report

The 2012 Next Generation Customer Experience Benchmarking Report4

BENCHMARKING SURVEY

HOW LONG HAS CUSTOMER EXPERIENCE BEEN AFOCUS AT YOUR ORGANIZATION?

6% < 1 Year

16% 1-2 Years

21% 2-3 Years

52% > 3 Years

5% Not a focus yet

CUSTOMER EXPERIENCEHAS BEEN A FOCUS FOR

FOR 52% OF PARTICIPANTS

>3 YEARS

3

4 DOES YOUR ORGANIZATION HAVE A SEPARATECUSTOMER EXPERIENCE DEPARTMENT?

< 1 YEAR 1-2 YEARS 2-3 YEARS 3+ YEARS NOT A FOCUS

6%

16%21%

52%

5%

53% Yes, it is separate

51% No, it is within another department

YES,it is separate53%

The 2012 Next Generation Customer Experience Benchmarking Report5

BENCHMARKING SURVEY

HOW HARD IS IT TO GET INTERNAL APPROVAL FORRESOURCES AND FUNDING FOR A NEW CUSTOMEREXPERIENCE ROLE/INITIATIVE?

5

6 RANK THE FOLLOWING AREAS FROM ONE TO FIVE, ONEBEING THE TOP PRIORITY FOR YOUR BUDGET PLANS,FIVE BEING YOUR LEAST BUDGET PRIORITY AREA.

39% Slightly difficult

31% Difficult

26% Somewhat easy

6% Very difficult

0% Easy

SAID IT ISSLIGHTLYDIFFICULT39%

WEBSITE IN-STORE CALL EMPLOYEE SOCIAL MOBILECENTER TRAINING MEDIA

MORE THAN HALF OFRESPONDENTS SAID THEIR

IS EITHER FIRST OR SECONDPRIORITY WHEN IT COMESTO BUDGET ALLOCATION.

WEBSITE

Other Areas OfInvestment Include:• Technology to link all areas• Brand/ consumer/ marketplace/

competitive info• Data management/CRM• Product content• Media (outdoor, magazines)• None of the above• Advertising• People resources to fix processes

1 2 2 3 4 5

The 2012 Next Generation Customer Experience Benchmarking Report6

BENCHMARKING SURVEY

WHAT IS YOUR GREATEST OBSTACLE TO IMPLEMENTING A CUSTOMER EXPERIENCE STRATEGY?

7

30% Internal Resources

22% Lack of strategy

17% Budget

14% Executive buy-in

14% Execution

13% Other

INTERNALRESOURCES30%

8 WHAT ARE THE KPI’S FOR YOUR CUSTOMER EXPERIENCETEAM AND DEPARTMENT, OR HOW DO YOU JUSTIFYEXISTING AND ADDITIONAL EXPENDITURE?

USE SATISFACTION-BASEDMETRICS62%

SATISFACTION REVENUE LOYALTY RETENTION ENGAGEMENT PROFITBASED BASED BASED BASED BASED BASED OTHER

34%

26%

21%

16%5%

3%

40% 40%

BENCHMARKING SURVEY

WHICH METHODOLOGY DO YOU USE FOR CAPTURINGCUSTOMER SATISFACTION AND LOYALTY?

9

46% NPS (Net Promoter Score)

10% CLI (Customer Loyalty Index)

8% None

0% Kano Method

USE NPS (NETPROMOTERSCORE)46%

IN WHICH OF THE FOLLOWING AREAS DO YOUCURRENTLY PARTNER WITH SOLUTION PROVIDERS TOHELP WITH CUSTOMER EXPERIENCE INITIATIVES?

10

The 2012 Next Generation Customer Experience Benchmarking Report7

54%

31%25%

2%19%

PARTNER FOR CUSTOMERANALYTICS/FEEDBACK58%

CUSTOMER MARKET WEB SOCIAL CRM CONSULTING ANALYTICS/ RESEARCH EXPERIENCE MEDIA RELATIONSHIP INTERNAL FEEDBACK DESIGN MONITORING MANAGEMENT CUSTOMER MOBILE ALL

EXPERIENCE EXPERIENCE CUSTOMER IN-HOUSE

BENCHMARKING SURVEY

DO YOU HAVE A MULTI-CHANNEL CUSTOMER STRATEGYIN PLACE?

11

34% No, we do not have a multi-channelcustomer strategy in place

27% Yes, we have a multi-channel customerstrategy in place

34%

12 WITHIN YOUR ORGANIZATION, WHERE DO YOU SEE THEBIGGEST OPPORTUNITY FOR CUSTOMER EXPERIENCEIMPROVEMENT IN 2012/2013?

19% 19%

10%17%

32%

3%7%

34%

The 2012 Next Generation Customer Experience Benchmarking Report8

DONOT

SEE BIGGEST OPPORTUNITYIN THEIR WEBSITE

WEBSITE EMPLOYEE IN-STORE CALL MOBILE SOCIAL OTHER ALLDEVELOPMENT TECHNOLOGY/ CENTER MEDIA OF THE

INTEGRATION ABOVE

BENCHMARKING SURVEY

HAVE YOU SEEN MEASURED SUCCESS FOR ACUSTOMER EXPERIENCE INITIATIVE YET?

13

13aIF YES, HOW DID YOU MEASURE SUCCESS?

35% Yes, we have seen measured success from a customer experience initiative

28% No, we have not seen measured success from a customer experience initiative

The majority of respondents measured successbased on four key metrics. First place was

followed byin second place, in third,and fourth place went to

INCREASED CUSTOMER LOYALTY,INCREASED CUSTOMER ENGAGEMENTINCREASED PROFITSINCREASED CUSTOMER BASE.

Other metrics used included:• Increased satisfaction for phone contact• Increased customer retention

• Traffic engagement• Customer satisfaction

The 2012 Next Generation Customer Experience Benchmarking Report9

35% Have

ABOUT NEXT GENERATIONCUSTOMER EXPERIENCE

The Next Generation Customer Experience Event brings together more than 250 senior level executives to shareinnovative, cross-industry customer experience strategies. Whether you’re looking for ideas on how to gain buy-infrom the C-Suite, achieve a single customer view or interpret customer feedback, NGCE focuses on every aspect ofthe customer experience across all touch points.

Join us March 11 to 13, 2013 at the Rancho Bernardo Inn in San Diego, CA as we bring together the biggest brandsand brightest minds in the industry to share their lessons learned.

To register or for program information, please visit www.the-customer.com, call: 1-646-200-7530, or email:customerexperience@wbresearch.com

“Engaging speakers, relevant content and real-world applications presented. Extremelyvaluable customer experience education!”Diane Ferraro, Director of Brand Experience and Marketing, Robbins Brothers, The Engagement Ring Store

“Excellent speakers,content, peers”Stephen Sloan, Director, CustomerExperience, Harry & David

“First, thank you for all you did to makethe conference a success. I got so muchvalue from the conference this year – Ican’t wait to start implementing someof the ideas and starting some of theneeded conversations in our company.”Chad Toppas, Senior Consumer Experience Analyst, Nintendo of America, Inc.

“The Next Generation CustomerExperience program was excellent forboth attendees and vendors. There was agreat deal of information and idea sharingacross the event. It was an excellent way tonetwork and meet fellow colleagues andcustomers.”

- Peter Whalen, EVP, Americas, Confirmit

“Overall a great experience filled with a diversecollection of very passionate professionals sharingbest practices related to improving the customerexperience. I was able to take away many nuggetsthat are applicable to our business. Looking forwardto digesting all the materials I brought back.”

- Darrell E. Rowe, Director Education & Development,Bridgestone Retail Operations, LLC

“In addition to a wealth of information about movingcustomer experience to the next level in myorganization, I met some amazing like-mindedprofessionals to share ideas and best practices, whoshare a passion for customer experience.”

- Suzanne Hasbrouck, Giant Eagle, Senior Manager ofCustomer Service Development

“The Next Gen Customer Experience Conference wassuch an inspirational event! We heard from amazingspeakers who gave us great best practices and gotour team thinking about how we could integratesimilar ideas into our own business. Unlike otherconferences I have attended, I felt there was a trulyinteractive environment. The format really allowed usto converse with our peers and speakers. It alsoturned out to be a great networking event for us.”

- Cassie Alvey, Director of Marketing, Mrs. Fields Cookies

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