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- Week 2: What's CEXy?
Hello and welcome to What's CEXy. The newsletter where we do all of the research and you get all of the insights.
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So what's CEXy this week? 😏
B2C NPS benchmarks
Satmetrix conducted a survey in 2021 which captured over 65k responses from US consumers across 23 different B2C industries and 221 different brands. Key highlights are below, with supporting images included at the bottom of the email.
#1 - Costco don't just lead the way with prices
Out of 221 different brands, Costco had the highest NPS at +80. Department & Speciality stores (which Costco was categorised as) was the highest scoring industry, with a combined NPS of +56!
#2 - Customers are the most satisfied with these industries ...
Top 5 industries according to NPS:
Dept & Speciality Stores: +56
Hotels: +49
Brokerage / Investments: +49
Credit Cards: +45
Drug Stores / Pharmacies: +45
And for those curious, Satellite TV & Cable Internet Services were the only industries who had a negative NPS result, at -2 and -3 respectively.
#3 - USAA leading the way!
Whilst Costco had the highest NPS across any company, USAA lead the way in a number of industries which we found to be very impressive! This demonstrates their customer-centric approach to business operations, no matter what industry they're operating within:
Auto Insurance: USAA had the highest NPS: +66
Banking: USAA had the highest NPS: +70
Credit Cards: USAA had the highest NPS: +68
Home Insurance: USAA had the highest NPS: +70
Life Insurance: USAA had the highest NPS: +69
Check out the images at the bottom of this newsletter for further insights and tune in next week for a B2B benchmark summary!
Data analytics trends in 2022
Adobe recently released their 2022 Digital Trends report, leveraging data from 9000+ marketing professionals. Over the next couple of weeks, we'll be dropping key insights below. The report split respondents into 3 categories based off of their self-assessed maturity to data analytics - leaders, mainstream & laggards:
#4 - Companies don't have the right tools for retention
Alarmingly, only 45% of leaders claims to have insight into friction points in the customer journey. Only 5% of laggards claimed to have insight into the customer journey.
On a similar note, only 48% of leaders claimed to understand what the drivers of customer loyalty & retention were. Looking at laggard respondents, only 8% claimed to have these insights.
#5 - Customer data technology is a top priority for executives in 2022
58% of Executives agreed that Data & Insights platforms are a top-three technological priority in 2022. Over 50% of executives stated that they will be increasing their investment into Customer Data Technology & Customer Experience Management platforms in 2022, compared to what they spent in 2021.
Why CX will be so important in 2022-23
#6 - Customer acquisition is going to get increasingly difficult with third-party cookie deprecation
Look, we won't go into all of the details around third-party cookies but this excerpt from the Digital Trends report reinforces why customer experience & retention is going to become much more important in 2022-23;
As the marketing landscape continues to evolve, senior executives are just as likely to be prioritising customer retention as they are customer acquisition. More than half (59%) plan to increase their budgets for online media spending in 2022 compared with 2021 however the end of third-party cookies will limit access and insight into the audiences on which brands rely for customer acquisition, forcing advertisers to turn to new (more expensive) methods for prospecting. We’re likely to see both CPC (cost per click) increases and efficiency decrease in this context. In a cookieless future, acquisition will be more complex and costlier. This increases the onus on customer retention, maximising first-party data to reduce churn and increase value from within the existing base.
#7 - First-party data has suddenly become more important
Only 21% of practitioners consider themselves prepared for the end of the third-party cookie, with 41% of marketers saying that the biggest challenge will be the inability to track detailed user data.
With the deprecation of third-party cookies driving increasing customer acquisition costs, it's highly likely that organisations will shift their focus on trying to keep existing customers for longer. This reinforces the need to invest into great CX processes & technology, ensuring you capture as much first-party data about your customers as possible.
Employee experience
#8 - The club feedback sandwich
A recent article found that positive interactions should outweigh negative interactions by 5:1 in a workplace. This means that for every piece of negative feedback you provide to an employee, you should be providing 5 pieces of positive feedback.
We call this the Club "Feedback" Sandwich.
#9 - Praise in public; criticise in private
Research by Christine Porath & Christine Pearson reported in the HBR found that ~50% of employees will intentionally decrease their productivity if they consider themselves to be on the receiving end of workplace hostility i.e. harsh criticism from their boss.
Let's be real; everyone loves their tyres to be pumped up. Make sure you find that healthy balance!
Other bits & pieces
#10 - Is word of mouth marketing being under-utilised?
A survey of 250 US marketers and 1000 US consumers identified an interesting mismatch between the "marketing experts" and the "customer". 28% of consumers advised that word of mouth was the preferred method for learning about a new product. Only 4% of "marketing experts" identified word of mouth to be the preferred channel.
On the flip side, only 11% of consumers recognised online / digital ads as their preferred way to learn about a new product however 36% of marketing experts classified this as the most important channel.
Time to revisit your marketing channel mix? We think so ...
Image of the week 🎉
Because you have taken the time to scroll all the way down to the bottom of this email, we are going to reward you with TWO IMAGES for the week!!!!
2021 B2C NPS Benchmarks (United States)
