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A new publication from Industry Dive, coming November 6, 2023.
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Failed mergers, changing consumer preferences and mounting debt all contributed to the airline’s financial struggles.
Spirit Airlines has faced a series of headwinds in recent years, from failed mergers with Frontier and Jet Blue to changing consumer preferences and mounting debt. On Monday, it filed for Chapter 11 bankruptcy. “Spirit is facing quite a few challenges right now,”?Sean Cudahy of The Points Guy, told CX Dive. “For one thing, airlines took on a lot of debt during the pandemic. Spirit has billions of dollars in debt, more than a billion of which is coming due here soon.” Customers are also looking for premium travel experiences — something that the low-cost, no-frills airline is not known for. The budget airline looked to reassure customers Monday that business would continue as usual. Customers can continue to book and fly Spirit, use and earn loyalty points, and expect “excellent service and an elevated experience” from Spirit staff, the airline said.? https://lnkd.in/euD2h5gQ
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The standards for CX created by Bain, Kantar and Qualtrics call on leaders to play a major role in shaping a customer-centric culture across the business. https://lnkd.in/eSAWNGys
The Global Standards for Customer Experience released last month by Bain & Company, Kantar and Qualtrics cover a lot of ground. The standards encompass three mandates, each with its own set of standards. CX Dive sat down with Bain and Kantar to discuss the first mandate, focused around creating and measuring a customer-centric culture, and dug into what expected of leaders both in and outside of CX roles. “The culture and the tone is set from the very top of the business, which is what the standards try to lean towards,” Kantar's Peter Aitken told CX Dive. This was the first in a series that will look at all three mandates in the global standards. Stay tuned for the next piece, focused on customer experience capability, in the coming weeks. https://lnkd.in/e8NjeF5Y
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The rule will allow the agency to seek civil penalties from knowing offenders, with fines of up to nearly $52,000 per violation.
It's official. The Federal Trade Commission’s rule banning the sale or purchase of fake reviews went into effect Monday, banning false or misleading reviews from those without direct experience with a product or from people who do not exist.?The rule also allows the FTC to seek civil penalties from knowing offenders... with?fines as high as?*$51,744 per violation.* The rule is a win for customers and businesses trying to play fair. Most of us look to reviews before we purchase a product, and knowing that the reviews aren't skewed or false helps inform our purchase decisions. I chatted with Allyse Slocum of Trustpilot earlier in the month about the importance of review integrity. Not only do reviews foster customer trust, but they help businesses identify pain points and areas for improvement. More at CX Dive: https://lnkd.in/dt_Nn-q5
It’s official: There’s a ban on the purchase or sale of fake reviews
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While consumers are reporting fewer bad experiences, they are?becoming less forgiving?and will take their money elsewhere, according to Qualtrics XM Institute.
Bad experiences directly impact businesses' bottom line. According to an?analysis by Qualtrics XM Institute, companies put $3.8 trillion in sales at risk, as customers frequently cut their spending following bad experiences. There is, however, some good news. “Companies are actually delivering fewer bad experiences,” Isabelle Zdatny, CCXP, XMP, told CX Dive. "So the overall quality of experience has increased, but consumers are less tolerant of even small points of friction and bumps in the road," she said. https://lnkd.in/ej6bX8e9
Bad experiences put $3.8 trillion at risk
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“In-store experiences can draw consumers to do their holiday shopping in store this year,” Jill (Puleri) Standish, senior managing director and global retail lead at Accenture, told CX Dive. “They want the best of both worlds — creative experiences that wow them and convenient experiences that serve their needs with zero hassle.”
More shoppers plan on visiting stores and shopping centers this holiday season than last year, and retailers have an opportunity to capitalize on this opportunity with experiences that balance speed and creativity. Many customers will be visiting stores to pick up orders they placed online, according to a survey by JLL. These shoppers are often looking for speed, combining the convenience of ecommerce with the immediate gratification of buying something in-store rather than waiting for delivery. However, speed shouldn't come at the cost of interesting experiences. Plenty of shoppers will be out to browse and become inspired by what they see in-store. The right combination of staff and technology?strategies can appease customers no matter what experiences they seek. “They want the best of both worlds — creative experiences that wow them and convenient experiences that serve their needs with zero hassle,” Accenture's Jill Standish told CX Dive. https://lnkd.in/eJfiRUdN
Holiday shopping spans multiple channels. Here’s how retailers can meet CX needs.
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The new standards are designed to provide foundational measurements that CX leaders in any industry can use to benchmark their CX success against competitors’ offerings.
Bain & Company, the creator of the NPS score, worked with Kantar and Qualtrics to create a global standard for CX measurement that was introduced in July. Today, they updated the standards based on a 10-week industrywide feedback period that brought in comments from companies and professionals in 23 countries. “If we’re going to claim that these are universal standards, then we certainly need that input from different practitioners around the world,”?Stanford Swinton, EVP at Bain and principal author of the standards, told CX Dive in a July interview. The updated framework refined nearly half of the standards and added three new ones based on the comments. The measurements aim to provide professionals with a set of universal metrics that truly measure the quality of a given company's customer experience — something existing tools fall short on. https://lnkd.in/eMx9Dmbk
NPS creator details new global standards for customer experience
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Research shows customers are frustrated with the login experience, and the friction can cost businesses customers.
Oracle CTO Larry Ellison is done with passwords. “Let me announce right here, we’re done with passwords,” Ellison said on a?recent earnings call. “Don’t ask me to type in some stupid 17 letter password that someone can steal." Larry isn't alone in his hatred of passwords. Nearly 9 in 10 consumers?complain about keeping track of their passwords, according to a?Ping Identity survey released this week. I'm one of them. Right before I started writing this story, I got locked out of an account because I couldn't remember the password and spent another 15 minutes of precious writing time trying to figure it out before I gave up and reset it. What's the point if I can't remember it and it can still get hacked? The login process is full of friction — and passwords are the largest pain point. The experience can lose customer trust, and customers themselves. But do businesses have a solution? I dug into the topic for my latest story for CX Dive. https://lnkd.in/eVrX-e6F
Customers are done with passwords. Do businesses have a solution?
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Jackson Family Wines is bringing the wine country tasting room experience to everyone through a revamped website and wine club experience. Unveiled in June, the fresh digital experience is the result of a three-year partnership with Deloitte Digital to deliver a seamless online journey, no matter how or where customers access its sites.
Kendall-Jackson Wine Estates boosted its active website users by nearly seven times year-over-year after it relaunched its site with a mobile-friendly layout and new self-service options for its wine clubs. The changes were part of a multi-year effort by parent company Jackson Family Wines and Deloitte Digital to revamp the digital customer experience and bring the California wine country tasting room experience online. “It’s sensory, it’s educational, it’s often very emotional, and it’s also easy to purchase wine,” Deloitte Digital's Kelly Schloesser told CX Dive. https://lnkd.in/g23jx88Y
How Jackson Family Wines brought wine country online
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Researchers find that not only are customers wary of AI, but the inclusion of AI terminology actually decreases customers’ purchasing intention.
Companies are always talking about the benefits of AI. But do customers really want it? The public regularly indicates its wariness of the technology, but new research adds to that: AI terminology actually decreases customers’ purchasing intention. “Every experiment that we have seen, if you use AI, it decreases the purchasing intention,” Mesut ?i?ek, co-author of the study, told me. “We provided them some text about the product, product descriptions, and then the only difference between the descriptions is in one, it includes AI. In the other one, it doesn’t include AI.” In other words, some companies are losing money by advertising a product or service as "AI-powered." Now, that doesn't mean companies should abandon AI or not disclose the use of AI. Instead, businesses have work to do building trust with their customers. “People don’t want to buy ‘AI,’ but they are probably willing to pay more if you can create more value for them using AI,” Bruce Temkin told CX Dive. “So the strategy remains the same as always, focus on value first, and then determine the messaging that brings that value to life.”
Customers don’t trust AI, and the rift might be hurting business
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