The X Index, which surveyed 28,000 consumers across five markets — China, France, India, UK and US — found that of the 40 criteria analysed, two factors — ‘the customer journey was simple’ and ‘the customer journey was pleasant’ scored the highest — even above other factors including brand loyalty, customer service and price.
2. 2
REINVENTING CUSTOMER EXPERIENCE
IN THE ERA OF COVID-19
Sources: 1
Kantar Experience Advantage, 20202
Harvard Business Review x Salesforce, 2019
Long before the pandemic of 2020,
consumers across markets had become increasingly less tolerant of
imperfection in their consumption journeys. Why put up with glitches
and delays when so many choices of brands and retailers are now
available? People expect companies to understand and even anticipate
their needs and adapt quickly to cater to them. Too many brands are
falling short on this score. This year’s Kantar Experience Advantage1
study found that whereas 91% of CEOs think their companies are
customer-centric, only 13% of consumers would describe the brands
they buy that way. Moreover, according to a 2019 study by Harvard
Business Review,2
73% of business leaders say that delivering a
relevant and reliable customer experience (CX) is critical to business
performance, and yet only around 1 in 8 have a single source of
customer intelligence.
And then, the world was plunged into turmoil.
In 2020, we have faced crises on multiple fronts: health, economic,
and sociopolitical. It has been a time of tremendous pressure on brands
and businesses, but also an opportunity to transform in valuable ways
to meet the rapidly changing needs of the new consumer. With physical
stores shuttered in many countries for extended periods, it is estimated
that the coronavirus crisis will result in $183 billion in additional online
spending by consumers this year. This has put pressure on brands to
strengthen their best practices, both digital and in real life, and find
ways to meet pandemic-era consumer needs.
THE HAVAS CX BAROMETER FOR
CUSTOMER EXPERIENCE
Created in partnership with research institute OpinionWay in 2018, the Havas
CX proprietary tool serves as a global barometer to measure and maximize the
customer experience.
In 2020, we deployed the X Index across five countries—China, France, India, the
United Kingdom, and the United States—surveying 28,000 adults about more
than 250 brands (approximately 50 in each market). These brands operate in a
variety of industries, from fast food and fashion to transportation, technology,
and finance, and include both “bricks & clicks” (brick-and-mortar brands that
have gone through the digital transformation) and “pure players” (online only).
2
RETAIL
CROMA
JIOMART
PANTALOONS
SHOPPERS STOP
WESTSIDE
FASHION/SPORT
ADIDAS
MYNTRA
NIKE
TANISHQ
HOSPITALITY
AIRBNB
HYATT
ITC
MARRIOTT
OBEROI
OYO
TAJ
MEDIA/TECH
AIRTEL
APPLE
JIO NETWORK
NETFLIX
SAMSUNG
VIVO
VODAFONE IDEA
FINANCIAL SERVICES
AXIS
CITI
HDFC
ICICI
KOTAK MAHINDRA
PAYTM
AUTOMOTIVE
BAJAJ AUTO
CITROËN
HONDA
HYUNDAI
MARUTI
MG HECTOR
MICHELIN
SUZUKI
TOYOTA
TVS
E-RETAIL
AMAZON
BIG BASKET
FLIPKART
GROFERS
SWIGGY
ZOMATO
FAST FOOD
DOMINO’S
KFC
MCDONALD’S
PIZZA HUT
STARBUCKS
INDIA 50 BRANDS STUDIED IN 8 CATEGORIES
3. 3
OUR METHODOLOGY
Our research team sought to analyze each brand across 40 criteria,
with each respondent responsible for rating two brands with which
they had at least one shopping experience during the previous 12
months. Each measure relates to one of the essential steps of any
customer journey: the brand itself, the relationship between the
customer and brand (both push and pull), the purchase journey,
and the experience with the product/service. In light of this year’s
exceptional circumstances, we added a fifth category for 2020: how
the brand has responded to the COVID-19 crisis. Finally, we queried
each respondent about their overall satisfaction with the customer
experience.
What is the impact of the brand factors on CX perceptions?
How do personal interactions (e.g., CRM, customer service)
affect the overall perception?
How does the customer’s overall satisfaction with the service/
product and price impact perceptions of the experience?
To what extent do the purchase process and transaction
impact the overall experience?
How have brand behaviors in response to the pandemic
influenced perceptions of the brand experience?
BRAND
RELATIONSHIP
SERVICE/PRODUCT
PURCHASE
COVID-19
4. 4
~40 ITEMS ANALYZED
I completely trust the brand
The brand makes
my life easier
The brand keeps
its commitments
If the brand were to disappear,
it would bother me
The brand is original, stands
out from other brands
The brand is reassuring,
always on my side
The brand creates a sense
of community/belonging
The brand often has extra
attentions that go beyond
my expectations
I’m often excited when the brand
launches a new product or service
I am loyal to the brand
BRAND
Overall satisfaction with the
use of the services/products
Satisfaction with the price
of the services/products
Overall satisfaction with the
quality of the services/products
PRODUCT
RELATIONSHIP
Maintained relevant and
responsible communication
Adapted its shopping
experience well
Was particularly helpful
COVID-19
Was not intrusive
Offered me products/services
I couldn’t find anywhere else
Was pleasant
Made me want to engage
further with the brand
Was unique
Was seamless
Was very simple
PURCHASE
Ability to understand your
needs and answer your requests
Ability to thank and reward
you for your loyalty
Ability to offer you unique and special
experiences (private events, exclusive
invitations)
The relevance of the information
that is sent to you
Consistency and clarity of the
information delivered between
intermediaries*
Ability to listen and to react quickly
on social media
Awareness of the history and
customer profile in order to
propose customized offers
Ads for the brand on the internet
seem to fit the customer profile
and previous purchases
Emails or mail seem to fit the
customer profile and previous
experiences with the brand
Quality of customer service
The attention and efficiency of its staff
Easiness to use the website and/or
navigate the mobile app
Information provided on its website
and mobile app is as expected
Website and mobile app content
is customized to customer needs
Website and mobile app
content is useful and helpful
Website and mobile app offer
unique and distinctive content
5. 5
AVG 7.7
OUR STATISTICAL APPROACH
DEFINING WHAT MATTERS FOR CX EFFICIENCY
Looking across all 40 indicators/interactions, each brand received a grade from 0 to 10. Respondents in France
were less generous in their scoring than were those in the other four markets, suggesting a generally lower
satisfaction with their customer experiences overall. French respondents returned an average brand score of
7.35 compared with 7.7 from respondents in China, 7.6 in the UK, 7.75 in the US, and a remarkably high 8.5 in India.
AVERAGE GRADES PER COUNTRY
Yi = β0 + β1 Xi,1+…+βn Xi,n + εi
AVG 7.35
0
10
AVG 7.75
AVG 8.5
AVG 7.6
This data model determines what are the most discriminating criteria
that define the efficiency of customer experience among the 40 items
that were put in the model at the start. This model builds an unbiased
approach to CX efficiency and gives us the means to compare what
makes a good customer experience for bricks & clicks brands and pure
players, and also enables us to compare results between countries.
The Havas CX data department designed the X Index by applying a
linear regression model. For each individual “i,” the explained variable
is written as a linear function of the explanatory variables.
•
We preselected only criteria
with the best correlations.
•
We checked that there were
no autocorrelations between
the different criteria.
•
Then we used a stepwise approach to
select the most relevant criteria in order
to build the final X Index model.
We used univariate correlation analysis
to obtain a more robust model:
METHODOLOGY
6. 6
TWO WORLDS:
PURCHASE VS. RELATIONSHIP DRIVEN
CX is driven by a unique combination of factors in each market, but the results of our survey allow us to identify two clusters:
In France, the UK, and the US, the effectiveness of the customer experience
is driven above all by the purchase journey and brand items. Overall, the
weight given to the brand-customer relationship has fallen compared with
2019, likely due to reduced in-person shopping during the shutdowns.
In China and India, in contrast, the customer-brand relationship carries
the most weight within the X Index. In these countries, we also note
significant weight attached to the brands’ responses to COVID-19.
CLUSTER 1:
PURCHASE
JOURNEY DRIVEN
CLUSTER 2:
RELATIONSHIP
DRIVEN
Beyond this clustering of countries, we can see that all parts of the journey matter when it comes to CX, even
if they carry different weights in each market. This is why CX cannot be the concern only of the communication
department, CRM, or e-commerce. It must be at the heart of the company—a focus and responsibility across
departments and functions.
29% COVID-19
44% RELATIONSHIP
27% PURCHASE 9% BRAND
15% COVID-19
47% RELATIONSHIP
29% PURCHASE
29% BRAND
22% RELATIONSHIP
49% PURCHASE
38% BRAND
22% RELATIONSHIP
40% PURCHASE
33% BRAND
27% RELATIONSHIP
40% PURCHASE
7. 7
AND THE WINNERS ARE…
TOP 10 BRANDS PER COUNTRY
IN CHINA,the rankings are dominated by
technology, electronics, luxury, and hospitality
brands. Remarkably, eight of the top 10 brands
are new for 2020, with only Volkswagen and
Airbnb remaining from the 2019 list.
IN FRANCE, the same three digital natives
(PayPal, BlaBlaCar, Netflix) made the top 10
for the second year running. Notably, of the
seven brands that made the list for both 2019
and 2020, six saw their scores decline this
year—suggesting a reduced sense of customer
satisfaction in this market. It is worth noting that
a newcomer this year, Michelin, took the number
one spot thanks to perceptions that it is a brand
that keeps its commitments.
IN INDIA,automotive (MG Hector,
Maruti, Hyundai, Citroën) hospitality
brands (Oberoi, Marriott) dominated the
list in the pandemic year where both the
categories faced an uphill task. Tech
Consumer brands were under-represented
with only Apple and Tanishq making the cut.
In looking at the highest-scoring brands within our study, we see notable distinctions between the five markets.
51
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52
53
54
55
56
57
58
64
64
58
59
65
65
67
69
72
73
73
82
METHODOLOGY
To represent as clearly as possible the distribution of the grades resulting from the X Index model, we ventilated them on a scale from
-100 to 100. It allows an easier reading of the brand result and ranking. We defined the 4 intervals [-100;0], [0;25], [25;50], and [50;100] to
classify the studied brands into 4 homogenous and clear clusters.
47
49
52
53
55
57
60
64
66
78
49
50
50
51
51
51
53
54
58
60
42
45
48
49
58
60
63
65
69
85
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49
52
53
55
57
60
64
66
78
51
51
52
53
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55
56
57
58
64
64
58
59
65
65
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69
72
73
73
49
50
50
51
51
51
53
54
58
42
45
48
49
58
60
63
65
69
Score up compared with 2019 Score down compared with 2019 Newcomer in the top 10
8. 8
IN THE UK, three pure-player brands (PayPal,
Netflix, Spotify) made the top 10, and two tech
brands (giffgaff, Apple) took the top spots.
IN THE US,six brands were new
to the list of winners this year, led by
pure-player Chewy, a retailer of pet
products. Despite the lockdowns, three
hospitality brands (Hilton, TripAdvisor,
Marriott) were included among the winners.
AND THE WINNERS ARE… [CONT’D]
TOP 10 BRANDS PER COUNTRY
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55
57
60
64
66
78
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50
50
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51
53
42
45
48
49
58
60
63
Score up compared with 2019 Score down compared with 2019 Newcomer in the top 10
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49
52
53
55
57
60
64
66
78
51
51
52
53
54
55
56
57
58
64
58
59
65
65
67
69
72
73
73
82
49
50
50
51
51
51
53
54
58
60
42
45
48
49
58
60
63
65
69
85
11. 11
-
11%
11%
10%
#15
Using Martech solutions, Oberoi Hotels
Resorts have created a seamless marketing
automation system that addresses customer’s
needs and delivers a customized CX
Mastering the relationship-driven approach,
Starbucks relies heavily on its first party data
to delivery customized, experiential CX to
every customer.
CONTRIBUTION TO THE X INDEX
“ABILITY TO TAKE INTO ACCOUNT NEEDS AND
PREVIOUS EXPERIENCES TO PROVIDE CUSTOMIZED
OFFERS”
“ADS ON THE INTERNET SEEM TO FIT CUSTOMER
PROFILE PREVIOUS PURCHASE”
CONSUMERS
EXPECT BRANDS
TO CREATE
PERSONALIZED
EXPERIENCES
An important question worrying the CMOs is that
would the advent of cookie less world mean end
of personalized CX? The answer is emphatic no.
The customers today expect communication to
be customized to their profile and brands need to
take into account customer’s previous interaction
with the brand to deliver data-led personalized
experiences.
At the core of Nike’s CX strategy is extending
the customer life cycle through value-creating
mobile apps that helps them understand their
need better and customize their CX.
#14
#7
13. -
-
-
-
13
8%
6%
8%
12%
#8
Tanishq installed Karatmeter at key locations
for customers to test the quality of family
jewelry at no cost. The service has reduced
consumers’ faith in traditional family jewelers
but increased it in the Tanishq brand.
Citroen launched its showroom as part of
brand launch using ATAWADAC and Phygital
concept to give consumers a one-of-a-kind
retail experience while establishing its digital-
first proposition.
CONTRIBUTION TO THE X INDEX
“WAS SEAMLESS”
“THE CONSISTENCY AND CLARITY OF THE
INFORMATION DELIVERED BETWEEN
INTERMEDIARIES”
“THE EASINESS TO USE THE WEBSITE AND/
OR NAVIGATE THE MOBILE APPLICATION”
ITS WEBSITE AND MOBILE CONTENT WAS
USEFUL AND HELPFUL TO ME
SEAMLESS, CONSISTENT
OMNICHANNEL BRAND
EXPERIENCES DEFINES
CX FOR BRICKS AND CLICKS
As more and more bricks and mortar brands move
into bricks and clicks, another critical question
worrying the C-suite is - how to drive effective
CX transformation? Our advice to bricks clicks
brands is to not go about building completely new,
disjointed ecosystems but to extend their current
offline experiences onto digital platforms, as the
customer is looking for a consistent seamless
experience across touchpoints. Alongside this,
brands also need to pay that extra attention to
their owned channels where customers visit to
gather information.
Apple has introduced privacy “nutrition”
labels for the apps in AppStore that lets
the brand achieve two things: offer and
experience that goes beyond expectation and
solidify its offering of privacy first.
#2 #1
15. 15
CONTRIBUTION TO THE X INDEX
“I EXPECT BRANDS TO ACT RESPONSIBLY AND
PROVIDE ME WITH RELEVANT INFORMATION DURING
PANDEMIC”
Covid had a big impact on the way business is
done and many CMOs are wondering how do
they adapt their information dissemination to
changing customer needs? In the post pandemic
world, consumers are expecting brands to not just
display but act more responsibly. They particularly
expect brands to step up their post-purchase
customer support. The need of the hour is to
enable consumers by providing them easy access
to helpful useful content on relevant touchpoints
throughout the journey.
BRANDS NEED TO BE
MORE RESPONSIBLE,
INTERACTIVE
CARING, ESPECIALLY
POST THE PANDEMIC
Hyundai has continued to virtually engage its customers through
innovative and impactful digital content and innovations such as Click
to Buy during the pandemic. The brand went as far as guaranteeing a
contactless purchase process keeping in my mind safety of its customers.
HDFC devised a way to render personalized digital services to its existing
and new customers. The cloud-based solutions help customers open
accounts, apply for loan and manage investments without any physical
interface or visiting the branch during this pandemic.
#6 #23
“THE ATTENTION AND EFFICIENCY OF SALES
ASSISTANT/STAFF/ADVISORS”
15%
15%
-
10%
17. 17
#27
Keeping community at heart, AirBnB has
designed its interface that is not only easy to
navigate but also showcases the width and the
breadth of its community so that it is easy and
comfortable for you to find a place for yourself
in it!
Netflix, apart from personalizing
recommendations of their offering, also have
devised an easy to navigate that lets you find
whatever you want to watch without making
you feel overwhelmed by choices.
CONTRIBUTION TO THE X INDEX
“THE BRAND OFTEN HAS EXTRA ATTENTIONS THAT
GO BEYOND MY EXPECTATIONS”
“WAS PLEASANT”
SIMPLICITY AND
SEAMLESSNESS
MAKE A COMEBACK
Lastly, a number of CMOs worry how would
they understand and explain to their team the
complexity of CX? Customer Experience is integral
to all brand interactions and the customer is
not concerned about the science and the data
that goes behind the design of the customer
experience. What consumers are looking
forward to is a simple and pleasant purchase
journey, which is easy to navigate. Simplicity
of the experience leads to a delightful CX and
gives brand a chance to go beyond consumers
expectations when it comes to CX.
Apple created a pleasant CX for the
consumers of its India store by simply adding
the Shopping Assistance option that allows
customers to connect with Apple Specialists
and communicate with them in vernacular
language.
#1
#9
-
13%
11%
11%
18. 18
We have reached a tipping point this year at which customers are
expressing two distinct but equally important needs. They want
the efficiency—and, during this pandemic, safety—of simple and
seamless shopping experiences while also craving the human and
emotional connections that come through personalization and
signature moments. The challenge for brands is how to infuse
unique “signature moments” into the retail experience.
Customers expect brands to have a sincere approach that is
reflected in their actions and therefore in the experience they
deliver. In a world of uncertainty, the more sincere the intention
of the company, the more it is ultimately felt through the
experience it delivers.
Priyanka Mehra, Director, Marketing and Communications,
Havas Group India
priyanka.mehra@havas.com
CONCLUSION