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CX Appeal: Thanks to Brands’ Strong Results in 2016, Customer Experience Investments Are On the Rise

Pr, Marketing, Public relations, Customer experience, Temkin Group, Bruce Temkin, CX research, customer experience efforts, CX efforts, CX investment, customer experience investment64% of Companies Embracing CX Last Year Outperformed Their Competitors

A new research report from customer experience (CX) research firm Temkin GroupCX Expectations and Plans for 2017, finds that large companies are planning to spend more time and energy on their customer experience efforts in 2017.

Looking back at the previous year, 87% of respondents report that their CX efforts had a positive business impact in 2017—an increase from 79% in 2015. As a result, companies plan to invest more on their CX efforts this year.

In 2017, two thirds of companies plan to increase their spending on customer experience and the percentage of companies planning to increase their CX headcount is nine times larger than those who are planning to cut back.

“There’s a lot of momentum around customer experience, as large companies are very bullish about driving business results through better customer experience,” said Bruce Temkin, managing partner of Temkin Group, in a news release.

Other highlights from the research:

  • Sixty-four percent of companies that report at least moderately positive results from their 2016 CX efforts had better financial performance than their peers, compared with only 44% of other firms.
  • The percentage of respondents who looked ahead and said that CX will be significantly more important in the following year grew from 40% in Q4 2015 to 45% in Q4 2016.
  • The percentage of respondents who expect CX spending to increase in the following year grew from 57% in Q4 2015 to 67% in Q4 2016.
  • The percentage of respondents who expect to increase their full-time CX staff in the following year grew from 37% in Q4 2015 to 44% in Q4 2016 (only 5% expect to cut back their staffing this year).
  • Spending growth is expected to be strongest for VoC software, predictive analytics, and experience design agencies.
  • Web and mobile will remain the most important channels of focus in 2017, while social media experiences decline in importance.
  • Customer insights and analytics remains the most important CX activity.
  • Companies are planning to increase their use of CX metrics to drive compensation across all types of employees.
  • More than half of respondents expect to increase CX training with customer-facing employees.

This research report is available for purchase here.

This is the seventh annual study, which this year is based on a survey of 165 large companies in December 2016.

Source: PR Newswire; edited by Richard Carufel

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