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

4

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

6

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

8

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

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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

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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.