C O M M E N T A R Y
Eric Feinberg Vice President
R E S E A R C H
José R. Benkí, PhD Senior Research Scientist
Rebecca Berry & Jeff Sylvester Senior Analysts
© 2018 ForeSee
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T SHow brands compete and win on customer experience
Customer Experience is at the Heart of the Brand Promise
When you deliver great customer experience, you deliver on your brand promise.
It’s been two decades since the internet altered the
dynamic, but the change was locked in from the
start: Customers call the shots — and it’s truer
now than ever before. But this also gives retailers
an opportunity: Meet a need — by delivering a
unique product, meeting a price point, or creating
an experience — and shoppers will reward you.
This ability to calibrate with customers is driving every
retail trend we see. It’s what makes BOPIS — buy
online, pick up in store — so popular, it’s the reasoning
behind Amazon’s purchase of Whole Foods, and it’s
why brands are merging digital and online experiences.
This last point is especially important this year, as
you’ll see in our report. Online stores used to be seen
as the “endless aisle,” an extension of the physical
store and the subservient channel. That’s now been
inverted. Thanks in large part to Amazon, the store is
now the fulfillment vessel for digital. Customers search
and explore on web and mobile devices. Maybe they
purchase there as well (and they’re increasingly doing
so — see page 3), but they’re also likely to flip channels
and visit the store to complete the transaction.
Tractor Supply’s big success in desktop web
(see page 6) proves the point: They gave users a site
that encourages browsing and research, but also treats
the store as an extension of that site. And they get
bonus points for aligning the site experience to their
customers’ lifestyle.
Customers are looking for retailers to make good
on a promise — a promise to relinquish selling to
them in favor of understanding their needs. Meeting
those needs gets easier and faster when you employ
both digital and physical outlets. In the end, brands
that are customer-focused do well; brands that are
customer-obsessed do even better.
The only way to win is to see who’s winning.
SEE THE RANKINGS »
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F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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Deconstructing the Customer JourneyShoppers take a flexible, personalized path to purchase
Customers are channel hoppers driven by convenience. Omnichannel harmony,
flexibility, and personalization are rewarded; roadblocks send buyers to competitors.
The more touches you can perfect, and the easier it is to move between those
channels, the more likely customers are to return.
STARTS IN ENDS IN
49%
12%27%
60%
5%
28%
89%
3%2%
WEBWEB
MOBILE MOBILE
STORESTORE
A C R O S S A L L C H A N N E L S : S T O R E , W E B , A N D M O B I L E
O F T H O S E W H O S T A R T E D I N S T O R E
23% visited digital at some point before purchase
O F T H O S E W H O S T A R T E D I N D I G I T A L
35% visited a store at some point before purchase
26%
start in one but purchase in another
41%
use two or more channels during the purchase process
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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Brands That Get It RightWinners in store, web, and mobile experiences
Customers expect retailers to excel in multiple
channels. Some brands are already proving they
have what it takes to compete and win on customer
experience. Costco ranks well in two channels, but
mobile is its albatross. Some retailers, like Tractor
Supply, peak in one channel. What’s clear is that
membership has its privileges. In fact, the success
of Amazon Prime makes the online giant more like
Costco than Walmart.
T O P S T O R E S T O P W E B T O P M O B I L E
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
5
E N V I R O N M E N T M A K E S A N I M PA C T
say a memorable store experience is important61%
“…the shops are so elegant and aesthetically pleasing. It makes me want to stay in there forever.”
76 .4
FXI Score
WEB
12th
STORE
1st
MOBILE
14th
A P P L E S T O R E S D R I V E O N L I N E S A L E S
E M P L O Y E E E N G A G E M E N T M A T T E R S
of purchasers who start in store buy through a digital channel compared to only 5% at the aggregate level
20% NEARLY
of Apple store visitors want assistance from store associatescompared to 66% at the aggregate level
80% OVER
Store CX Winner
Apple makes “being there” an important part of the journey
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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Customers rank Tractor Supply’s web experience more than 6 points above the top-50 retailer average
+6 76 .4
FXI Score
WEB
1st
STORE
11th
MOBILE
44th
The site tills new navigational soil with its use of a mobile‑inspired "double hamburger" menu — one each for products and lifestyle.
60% of their customers have been to the website at least once in the past 30 days
While most purchases are made in store
20% of all Tractor Supply shoppers use the website during their journey “I like the menus and the overall
look of the site. It's a very country and down-home feel that matches the store and its clientele.”
Web CX Winner
Tractor Supply knows its audience, creates a personal connection
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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Mobile CX Winner
Williams Sonoma cooks up a big experience on the small screen
78 .1
FXI Score
WEB
13th
STORE
20th
MOBILE
1st
“Lovely pictures using merchandise in a home setting.”
“…colorful, filled with recipes.”
of Williams Sonoma purchasers use the mobile site during the purchase process20%
OVER
Baby Boomers score 14 points higher in mobile than Millennials (74.3)
88.3FXI SCORE
of shoppers who start in mobile end in mobile 40%
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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S T O R E P U R C H A S E R S
Mapping Retail CX PrioritiesSellers race to the bottom, but shoppers don’t follow
Conventional retail wisdom says price is paramount,
that discounts and sales bring in buyers. But the data
reveals a different, more nuanced story:
STICKER SHOCK Only 6% of shoppers selected
an item primarily because of price.
EXPERIENCE WINS Environment and findability
rank as the top priorities for both in-store and
digital purchasers.
BRAND LOYALTY About 45% of buyers
across channels say their most recent purchase was
driven mostly by retailer preference, and more than
75% say they shop at a preferred set of retailers
regardless of prices.
D I G I T A L P U R C H A S E R S
Top PriorityTop Priority
Product Descriptions Merchandise
Price
Product Finding
Merchandise
Service
EnvironmentPriceS
CO
RE
SC
OR
E
IMPACT IMPACT
Priority Maps use CX data to show retailers which customer experience improvements will yield the biggest business benefits. In the graphs above, elements in the bottom right quadrant are the most impactful to the business when a change is
made. In other words, a low-scoring, high-impact element is ripe for prioritization.
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
9
Why Customer Experience Matters The data behind the ROI of CX
For one national retailer, a one-point increase in CX led to a $149M increase in revenue
more likely to recommend the store
85%
S T O R E
more likely to make an in-channel purchase
81%
W E B
more likely to make a purchase in any channel
67%
M O B I L E
The better the customer experience, the more likely shoppers are to recommend
and buy. When shoppers engage with and trust retailers, it benefits the bottom line.
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
1 0
Shoppers Flexible FulfillmentBOPIS, BORIS, and BORO interest grows
Customers want convenient and versatile pick-up and return options.
Retailers are responding, but not fast enough for shoppers. 61% of customers place a high importance on BOPIS availability
58% relied on it this holiday season, up 25% over last year
61% use BOPIS, and 23% plan to increase their use
69% said the ability to make convenient returns influences whether they purchase online or in store
40% of online shoppers won’t purchase online if they can’t return in store
54% won’t buy from an online retailer that charges for return shipping
But retailers are not delivering: Only 25% say online returns are easy
look for flexibility in returns when selecting a retailer
say free shipping is very important when selecting a retailer
place high importance on shipping options when considering where to shop
87% 90% 69%
B O P I S B U Y O N L I N E P I C K U P I N S T O R E
B O R O B U Y O N L I N E R E T U R N O N L I N EB O R I S B U Y O N L I N E
R E T U R N I N S T O R E
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
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Category CX Rankings and NPSHow industry subsets are meeting customer needs
Pet and auto shoppers come to those categories with a built-in
emotional connection, giving retailers an opportunity to provide
memorable experiences. Conversely, fast fashion and tech are
more volatile markets, and sell to customers more interested
in great deals on new models, and less loyal to brands.
PET SUPPLIES PETSMART, PETCO 75.9 2424% of shoppers have a separate holiday gift budget for pets
AUTO PARTS & ACCESSORIESADVANCE AUTO PARTS, AUTOZONE, O’REILLY AUTO PARTS 75.4 23Purchasers who start in desktop are just as likely to stay in desktop as they are to go to a store
APPAREL — TRADITIONALNORDSTROM, MACY’S, NEIMAN MARCUS, ETC. 74.3 2239% said brand familiarity draws them to these retailers
HOUSEWARESWILLIAMS SONOMA, BED BATH & BEYOND 73.9 2054% said a loyalty program is very important in their purchase decision
COMPUTERS & ELECTRONICSAPPLE, GAMESTOP, BEST BUY, CARPHONE WAREHOUSE 73.6 14More than 25% use ratings and reviews websites to help with purchase decisions
HOME IMPROVEMENTLOWE’S, MENARDS, HOME DEPOT, B&Q 73.4 18Nearly 80% of all purchases are made in store
APPAREL – FAST FASHION H&M, ZARA, FOREVER 21, ETC. 71.4 816% visit fast fashion stores based on word-of-mouth recommendations
NPSFXI
Net Promoter Score® (NPS) is another
key retail metric, giving brands important
promoter/detractor measurements. It’s
vital to also know the specific actions you
can take to improve customer experience.
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
1 2
Retail CX RankingsFXI Scores: 40,000 shoppers rate 50 leading retailers
The FXI Score is a composite customer experience metric based on shopper interactions with each brand’s store, web, and mobile channel on a 0-100 scale. When two or more scores are identical at one decimal place, the next decimal place is used to break ties and determine rankings.
79 .1 78 .1 77 .9 77 .4 77 .3 77 .1 77 .1 76 .7 76 .6 76 .4
76 .4 76 .4 76 .2 76 .2 76 .0 76 .0 76 .0 75 .9 75 .9 75 .5
74 .7 74 .7 74 .5 74 .1 74 .0 73 .8 73 .7 73 .5 73 .4 73 .3
73 .2 73 .2 73 .1 73 .0 72 .9 72 .9 72 .8 72 .7 72 .3 72 .2
71 .5 70 .9 70 .5 70 .0 70 .0 69 .4 69 .3 69 .1 68 .9 64 .8
F O R E S E E E X P E R I E N C E I N D E X : R E T A I L C X I N S I G H T S
1 3
About the ForeSee Experience Index
The ForeSee Experience Index (FXI) is the definitive customer experience report
based on survey data from over 40,000 shoppers across their store, web, and mobile
experiences. The study was completed using a consumer panel representative of the
general population fielded in the fourth quarter of 2017.
The retailers in this year’s reports were chosen using the 2017 Deloitte Global
Powers of Retailing study, which ranks global omnichannel retailers by revenue.
ForeSee selected the top 50 non-grocery brands with operations in the U.S., U.K.,
or Canada for the FXI. ForeSee has produced the FXI every year since 2005.
This year’s findings were published in two parts, Retail CX Rankings and
Retail CX Insights. The reports introduced a new overall FXI Score, which is an
omnichannel metric comprised of a retailer’s CX scores for store, web, and mobile.
Each channel’s influence on the overall score was determined by the number of
respondent interactions with that channel. This year the reports include both the
new omnichannel FXI Score for each retailer and rankings by individual channel.
Since the study uses a different approach than in previous years, comparisons to
historical data are not available.
About the Author and Research Team
Eric Feinberg, Vice President, authors many of ForeSee’s thought leadership and
research studies. He is a frequent guest speaker on customer experience analytics,
Voice of the Customer, and marketing strategy, and has contributed to Forbes,
CMO.com, CustomerThink, Retail TouchPoints, and other publications. Eric is also
a board member emeritus of the Digital Analytics Association, and a graduate of
the University of Michigan.
José Benkí is a Senior Research Scientist at ForeSee and an Adjunct Assistant
Research Scientist in the Survey Research Center at the University of Michigan.
He has expertise in survey participation, interviewing, speech science, and
cross-cultural and cross-language survey research. He is a member of the American
Association for Public Opinion Research and the Acoustical Society of America.
Senior Analyst Jeff Sylvester uses his data science and market research expertise
to help ForeSee’s retail clients advance their CX programs. Jeff also leads survey
design and internal analyst training initiatives for ForeSee. He holds a B.A. from
DePaul University.
Senior Analyst Rebecca Berry specializes in improving retailer KPIs across all
channels through meaningful CX analysis and data insight. She graduated from
Eastern Michigan University with a B.A in English, Language, Literature, and Writing.
About ForeSee
Go deeper into the FXI data. Schedule a customized briefing: foresee.com/fxibriefing
ForeSee helps companies achieve measurable
business outcomes with customer experience
solutions that listen to, capture, measure, and
benchmark customer feedback – across web,
mobile, store, branches or field offices, and contact
centers. Organizations use ForeSee CX Suite® and its
proven methodology to guide critical decisions and
predict business impact with certainty.
ForeSee is the customer experience choice for 70% of
the Internet Retailer (IR) 100, 90% of U.S. government
executive branch departments, 8 of the top 10 retail
banks worldwide (and half of the top 50), and
thousands of other companies and organizations.
For more information, visit www.foresee.com.