Forrester’s 2024 US Customer Experience Index: Brands’ CX Quality Is At An All-Time Low

Rhea-AI Summary

Forrester's 2024 US Customer Experience Index reveals that CX quality in the US is at an all-time low for the third consecutive year. Only 3% of companies are truly customer-obsessed, which translates to 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention. Key issues include poor digital experiences, ineffective customer and employee engagements, and economic and social concerns. All three dimensions of CX quality have declined, with effectiveness at 64% and ease at 66%. Despite these challenges, the airline industry showed improvement. The 'elite' brands, including Tesla and Chewy.com, struggled to maintain high CX standards. The study, based on feedback from over 98,000 US customers across 223 brands, underscores the importance of emotional connection in delivering high CX performance.

Positive

• Customer-obsessed companies report 41% faster revenue growth.
• Customer-obsessed companies experience 49% faster profit growth.
• 51% better customer retention for customer-obsessed organizations.
• Airlines industry improved overall CX quality in 2024.
• Forrester's methodology helps prioritize improvements that drive revenue.

Negative

• CX quality in the US is at an all-time low for the third consecutive year.
• Only 3% of companies are classified as customer-obsessed.
• 39% of brands and 10 industry averages declined in CX quality.
• Effectiveness of experiences fell to 64% on average.
• Ease of experiences dropped to 66%.
• Elite brands, including Tesla and Chewy.com, struggled to maintain high CX standards.
• US brands are struggling to connect emotionally with customers.

Only 3% of companies are currently customer-obsessed and put their customers’ needs front and center

NASHVILLE, Tenn., & CAMBRIDGE, Mass.--(BUSINESS WIRE)-- According to Forrester’s (Nasdaq: FORR) US Customer Experience Index (CX Index™) rankings, CX quality among brands in the US sits at an all-time low after declining for an unprecedented third year in a row. Several factors, including brands’ inability to provide seamless customer and employee experiences; underwhelming digital experiences using chatbots; and consumers’ concerns about their personal financial situations, society, and the economy at large, contributed to the decline.

In addition to 39% of brands and 10 industry averages declining in CX quality over the past year, CX performance dropped across all three dimensions of CX quality — effectiveness, ease, and emotion. Only 3% of companies are currently categorized as customer-obsessed, defined as putting customers’ needs, desires, and satisfaction at the forefront of all business decisions and actions. Customer-obsessed organizations reported 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention than those at non-customer-obsessed organizations.

In 2024, only the airlines industry saw improvement in its overall CX quality. Additionally, the 2024 “elite” brands, the top 5% of brands in the entire CX Index — Chewy.com, Edward Jones, Etsy, H-E-B, Lincoln, Navy Federal Credit Union (for both multichannel banks and credit card issuers), Subaru, Tesla, USAA, and Zappos.com — struggled to maintain their status. Tesla’s ability to quickly resolve issues helped shift the automaker into the elite category.

While emotion remains the key factor for delivering high levels of CX performance, US brands are struggling to connect emotionally with customers. In 2024, elite brands evoke, on average, 25 positive emotions for each negative emotion, down from 29 the previous year. This year, the average effectiveness of experiences fell to 64%, while the average ease of experiences fell to 66%.

“US consumers are having, on average, the worst experiences in a decade,” said Rick Parrish, VP and research director at Forrester. “Brands want to create better experiences, and they realize that putting the customer at the center of their business is the way to do it. However, organizations struggle with the scale of change that this requires. It’s worth it, though, as our research finds that firms that are customer-obsessed grow revenue, profit, and customer loyalty faster than their competitors.”

Conducted for the ninth year in a row, Forrester’s Customer Experience Benchmark Survey, which collects data to calculate Forrester CX Index scores, is based on more than 98,000 US customers across 223 brands and 13 industries. Forrester’s proprietary Customer Experience Index methodology provides the data and insights needed to assess CX quality, understand how CX impacts loyalty intentions, and prioritize improvements that drive revenue. Even a minor improvement to a brand’s customer experience quality can add tens of millions of dollars of revenue by reducing customer churn and increasing share of wallet.

Forrester’s CX Index rankings and results reports are accessible within the Forrester Decisions portfolio of research services. Clients of Forrester Decisions services for Customer Experience, B2C Marketing Executives, and Digital Business & Strategy have access to the CX Index annual benchmarking exercise to help prioritize improvements based on industrywide trends and impact on customer loyalty.

Resources:

• Read more about the results of Forrester’s 2024 US CX Index, and explore Forrester’s 2024 US CX Index report (client access required).
• Visit here to discover previous Forrester Customer Obsession Award winners.
• Explore Forrester Decisions services for Customer Experience, B2C Marketing Executives, and Digital Business & Strategy.

About Forrester
Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; and more than 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617295669/en/

Ira Kantor

ikantor@forrester.com

Source: Forrester

FAQ

What is Forrester's 2024 US Customer Experience Index?

Forrester's 2024 US Customer Experience Index assesses the quality of customer experience among US brands, which has reached an all-time low for the third consecutive year.

How many companies are considered customer-obsessed in Forrester's 2024 US CX Index?

Only 3% of companies are considered customer-obsessed, putting customers' needs at the forefront of business decisions.

What are the growth benefits for customer-obsessed companies according to Forrester's 2024 US CX Index?

Customer-obsessed companies report 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention.

Which industry showed improvement in CX quality in 2024?

The airline industry showed improvement in overall CX quality in 2024.

How did elite brands perform in Forrester's 2024 US CX Index?

Elite brands like Tesla and Chewy.com struggled to maintain high CX standards, with Tesla entering the elite category due to its quick issue resolution.

What factors contributed to the decline in CX quality according to Forrester's 2024 US CX Index?

Factors include poor digital experiences, ineffective customer and employee engagements, and economic and social concerns.

What dimensions of CX quality declined in Forrester's 2024 US CX Index?

All three dimensions—effectiveness, ease, and emotion—declined in CX quality.