SDL surveyed nearly 3000 consumers across 9 countries and 3 generations about their single or most prominent points of CX failure and CX success over the last 10 years, how they behave as a result and the impact on a brand. Download the report to learn where the points of failure occur, how different generations and regions classify failures, how different consumers respond to failure and what can be done to take advantage of this wakeup call and avoid failure fallout.

2. 2
This is a summary of the findings from a global study
on customer experience (CX), conducted in January
thru March, 2015. It includes responses from 2784
consumers from three generations and across nine
countries (UK, US, Brazil, Germany, Sweden,
South Africa, China, Japan and Australia).
The purpose of this study is to explore where the
single or most prominent points of CX failure and CX
success happen with customers and the impacts to the
business.

3. 3
This Study Explored the
Following Questions
When consumers are asked about major
customer experience failures:
○ Where does customer experience go wrong?
○ Can you ever win back ex-customers?
○ What gets customers to re-commit?
○ What happens when a customer experiences
a major failure?
○ What happens when brands get CX right?

4. 4
76%
of consumers’
“worst CX failure”
occurred within the
last two years
Only 55%of the
consumers who
recalled a CX failure
also remembered a
success
When 2784 consumers were asked about their most
major customer experience failure in the last 10 years…

5. 5
Where Does Customer Experience
Go Wrong (or Right)?

6. 6
19% 18%
12%
7% 6% 6%
5% 4% 4%
2%
Communications
services provider
(i.e. Cable / TV /
mobile / internet
service provider)
Electronics
(televisions,
mobile phones,
video games,
etc)
A retail store
(any non-grocery
retailer you
would visit in-
person)
Online retailer
(Amazon,
ETC…)
Automotive (car,
truck, other
vehicle OR any
services related
to them)
Home /
Residential
services
(appliance
servicing,
plumbing, etc.)
Groceries and
Packaged goods
Banking &
financial services
(not including
Insurance)
Restaurant Professional
Services
Nearly 40% of consumers’
“worst CX experiences” have occurred in
industries that keep consumers in touch with
the digital world (and have more day-to-day
touchpoints), thus increasing the opportunity
for potential failure
The Worst Offenders for CX Failure

7. Customer journey stage
where the biggest CX
SUCCESS occurred ….
Customer journey stage
where the biggest CX
FAILURE occurred …
Comparing the Primary Points of Success and Failure
8% 22% 12% 28% 17% 12%
0% 20% 40% 60% 80% 100%
1
5% 16% 17% 23% 32% 6%
0% 20% 40% 60% 80% 100%
1
Customer Journey
Post-purchase, where customers
reach out for support is the
biggest difference between a CX
fail and a success.
• 2x more failures occur in post-
sale support than successes.
1
The biggest difference-maker for
creating fantastic CX is to impress in
the shopping / purchase stage.
• Almost 1.5x more successes
happen in the pre-purchase stage.
2 3
Delighting your loyalists.
• 2x more successes happen
in the re-purchase stage.
Pre-
purchase
Shopping/
Purchase
Initial
Impressions
Prod / Svc
Exp.
Post-Sale
Support
Re-
Purchase
Pre-
purchase
Shopping/
Purchase
Initial
Impressions
Prod / Svc
Exp.
Post-Sale
Support
Re-
Purchase

8. 4%
8%
10%
10%
11%
11%
15%
19%
26%
26%
26%
26%
29%
30%
31%
35%
0% 20% 40%
They kept contacting me after I chose to stop doing…
Heard of or observed poor treatment of other customers
Poor product design
They lost / ignored my customer status and instead…
Product / service difficult to use
Service outage
Completely unresponsive - never heard back
Company policies that are not customer-centric
Dishonest / unethical behaviour
Poor product quality
Product / service did not work as advertised
Customer service rude / offensive
Was given inaccurate or conflicting information
Customer service un-knowledgeable / poorly trained
Customer service not empowered to help properly
Long waits / Poor response times
Human Touch
Business Process
Product-related
The most cited
reasons for
consumers’ “worst
CX failure” relate to
business process
and customer service
agent failure
Reasons for CX Failure

9. 4%
8%
10%
10%
11%
12%
12%
13%
14%
16%
19%
19%
24%
25%
27%
35%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Heard of or observed other customers being treated well
Good up-time / No Service outages
Great product design
Provided an unexpected, but welcome follow-up…
Always provided with accurate, consistent information
Product / service worked as advertised
Product / service easy to use
Company policies that are very customer-centric
I always received a response when I wanted one
Unexpectedly gave me some kind of preferential…
No long waits / Good response times
Very honest / Ethical business practices
Customer service empowered to help properly
Great product quality
Customer service very knowledgable – well-trained
Customer service pleasant / helpful
Human Touch
Business Process
Product-related
Most CX triumphs
arise from
customer service
agent interaction
Reasons for CX Success

10. 10
Can You Ever
Win Back
Ex-Customers?

11. Do Customers Want to Get Back Together with
Brands that Jilted Them?
But the younger generations are less likely to pursue a
resolution…and more likely to get up and walk away.
82%
18%
Yes No
4 in 5 attempt to resolve
the CX failure
73%
82% 84% 87%
27%
18% 16% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YOUNG
MILLENNIAL
OLDER
MILLENNIAL
GENX BOOMER
No
Yes
82% of customers experiencing a “worst CX” are interested in fixing the problem
The older the customer, the more likely they are to want reconciliation

12. 20%
80%
Yes, it’s
possible.
No, it will never
happen again.
In reality, the odds are
stacked against you being
able to recover this customer:
• 1 in 5 would consider doing business
with you again.
• 4 in 5 will never come back.
If they do return…
they won’t treat you the same.
• 59% will have less loyalty toward you.
• 1/3 will return to status quo
• Just 7% will have increased loyalty
30%
29%
34%
5%
2%
0% 5% 10%15%20%25%30%35%40%
I’m MUCH less loyal than ever
before – I’m actively looking for…
I’m a little less loyal than before – it
wouldn’t take a lot for me to go…
Nothing has changed.
I’m a little more loyal than before –
it would take a lot for me to go…
I’m MUCH more loyal than ever
before – I like what I get from…
Of the customers that
walk away after a fail,
there’s only a 20%
chance of winning
them back again.
As for the customers
you are able to keep,
59% will be less loyal
The Reality of Winning a Customer Back

13. 131313
What Gets Customers to
Re-commit?

14. What customers say will win them back…
11%
19%
24%
26%
30%
35%
35%
0% 10% 20% 30% 40%
Ask me for my recommended
action.
Give me credits, loyalty points,
free upgrades, or other
compensationfor future…
Provide a genuine, personalized
apology
Give me discounts, credits,
rebates on products / services
where I had experienced the…
Show me how they had improved
their business as a result of my
experience.
Own the failure / admit their
mistakes
Nothing – I still wouldn’t go back
8%
9%
22%
21%
8%
29%
0% 10% 20% 30% 40%
They asked me for my recommended action.
They gave me credits, loyalty points,
freeupgrades, or other compensationfor future
products / services
I received a genuine, personalized apology
They gave me discounts, credits, rebates on
products / services where I had experienced
the failure
They showed me how they had improved their
business as a result of my experience.
They owned the failure / admitted their
mistakes
…and what actually will win them back.
(among customers who have returned post-failure)
What Customers Say Will Win Them Back
and What Will Really Win Them Back

15. 11%
19%
24%
26%
30%
35%
35%
0% 10% 20% 30% 40%
Ask me for my recommended
action.
Give me credits, loyalty points,
free upgrades, or other
compensationfor future…
Provide a genuine, personalized
apology
Give me discounts, credits,
rebates on products / services
where I had experienced the…
Show me how they had improved
their business as a result of my
experience.
Own the failure / admit their
mistakes
Nothing – I still wouldn’t go back
What customers say will win them back…
8%
9%
22%
21%
8%
29%
0% 10% 20% 30% 40%
They asked me for my recommended action.
They gave me credits, loyalty points,
freeupgrades, or other compensationfor future
products / services
I received a genuine, personalized apology
They gave me discounts, credits, rebates on
products / services where I had experienced
the failure
They showed me how they had improved their
business as a result of my experience.
They owned the failure / admitted their
mistakes
…and what actually will win them back.
(among customers who have returned post-failure)
What Customers Say Will Win Them Back
and What Will Really Win Them Back
30% of returning customers say they want to
see their experience help the brand to
change; only 8% admit that this actually
worked.
19% of returning customers say they want
compensation for future purchases; only 9%
admit that this actually worked.
By a factor of 3x, customers want: an apology, admission of
failure, and at least some money back
(on THIS purchase – not future purchases)

16. 16
What Happens When
Customers Experience a
Major CX Failure?

17. 17
“Of the people you fail,
you can expect to lose
65% of the revenue
they contributed the
year after the fail.”

18. 24%
30%
46%
Minimal Cost: Less than an hour; and/or $20
Moderate Cost: 1-8 hours; and $20 - $100
Considerable Cost: Greater than 1 day; greater than "$100"
The Cost to the Consumer for Their
“Worst CX Failure”
24% of “worst CX”
failures cost the
customer less than
$20* and less than
an hour
Less than the cost
of lunch!
*Currency converted to local
equivalent for each country
surveyed

19. The Cost to the Consumer for Their
“Worst CX Failure” by Country
35% 38%
44%
36%
46%
51%
56% 55%
50%
0%
25%
50%
75%
US Germany Sweden UK Australia Japan South Africa Brazil China
MINOR MEDIUM MAJOR
In the US & Europe, a failure is a failure – the bar is low
To customers in South African, Brazil and China, the
size of the failure mattersMinimal Moderate Considerable

20. More Developed Economies are More “Petty” and
Have Higher CX Expectations
The richer the
consumer base,
the more likely
they are to be
offended by
minimal CX
failures
AverageIncomeperPerson,
InternationalDollars,2013
DifferencebetweenMajor
andMinorCXFailures

21. 21
36%
22% 22% 17%
32%
35% 30%
26%
32%
42% 48%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Young Millennials Older Millennials Gen X Boomer
MINOR MEDIUM MAJOR
Younger generations are
lowering the bar on what
really constitutes a
“failure”
Only Millennials consider
CX failures with minimal
cost more noteworthy
than those with a
considerable cost
Millennials expect brands
to get the small stuff right
– and impose huge
blame if brands don’t
The Cost to the Consumer for Their
“Worst CX Failure” by Generation
Minimal Moderate Considerable

22. 36%
22%
30%
10%
2%
0%
10%
20%
30%
40%
Nothing. Went on as if
nothing changed.
I stopped recommending
them
I started looking for
alternatives, competitors.
I actively disparage them
every chance I got by word-of-
mouth
I actively disparage them
every chance I got through
social media and other online
publishing channels.
Passive Active
Indifferent Motivated Toxic
12% of customers experiencing a
CX Failure “go negative”
Responding to CX Failures
64% of customers experiencing a CX Failure stop recommending the
brand, leave or go negative

23. CX Failure Response by Generation
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Nothing. Went on as if nothing
changed.
I stopped recommending them I started looking for alternatives,
competitors.
I actively try to disparage every
chance I got by word-of-mouth
I actively try to disparage every
chance I got through social
media and other online
publishing channels.YOUNG MILLENNIAL OLDER MILLENNIAL GENX BOOMER
Passive Active
1 Younger millennials are most
likely to just do nothing.
2
Boomers are more likely to
disparage by word of mouth.

24. CX Failure Response by Country
36%
55%
37%
18%
7%
0%
10%
20%
30%
40%
50%
60%
Nothing. Went on as if
nothing changed.
I stopped recommending them I started looking for
alternatives, competitors.
I actively try to disparage
every chance I got by word-of-
mouth
I actively try to disparage
every chance I got through
social media and other online
publishing channels.
CHINA
JAPAN
GERMANY
SOUTH AFRICA
SWEDEN
US
BRAZIL
AUSTRALIA
UK
1
Sweden, Germany and Japan are content to “grin & bear it.”
• 1/2 of customers that receive a horrible CX do nothing
3
4
Australia and the UK
get disparaging (via
WOM)
5
China, South Africa, Brazil and
Australia actively look to move on
China stops
recommending
2
The UK punishes
you online

25. 0%
5%
10%
15%
20%
25%
30%
CHINA
JAPAN
GERMANY
SOUTHAFRICA
SWEDEN
US
BRAZIL
AUSTRALIA
UK
I actively try to disparage every chance I got by word-
of-mouth
I actively try to disparage every chance I got through
social media and other online publishing channels.
Brits are NOT shy about
sharing CX Failures
Countries Most Likely to “Go Viral”

26. Impact of a Consumer’s Social Footprint
583 618
565
489
1560
0
200
400
600
800
1000
1200
1400
1600
1800
Nothing. Went on as if
nothing changed.
I stopped recommending
them
I started looking for
alternatives, competitors.
I actively try to disparage
them every chance I got
by word-of-mouth
I actively try to disparage
them every chance I got
through social media and
other online publishing
channels.
Customers with a bigger social
footprint will broadcast failures more
aggressively
AverageSocialNetworkSize
AverageSocialNetworkSize

27. 27
What Happens When You
Get it Right?

28. 28
The Reward for CX Success
2%
27%
33%
44%
45%
46%
72%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None of the above.
I would follow them in social media
channels
I would be willing to join a loyalty / VIP
program
I would be happy to pay more to continue
to work with this company.
I would be willing to recommend them
online / write a good online review
I would trust their products and services
ABOVE all other providers
I would recommend them to others (offline)
98% of
customers will
do one or
more of these
positive
activities after
experiencing a
CX success

29. 29
42%
53%
49% 25%
7%
17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SUCCESS attribution FAILURE attribution
More technology-related
Both human and technology
equally
More human-related
Where Customers Give Credit for
Success and Failure
53% of CX failures are attributed to
human customer service agents
42% of CX successes are seen as
joint human/ technology capabilities
Customers see technology as
driving CX wins, and hold people
responsible for CX failures
CX failure most
often occurs
with more
human related
experiences
CX Success is
most often
achieved with
the seamless
combination of
humans and
technology

30. More human-
related
Both human and
technology equally
More technology-
related
Poor product quality 20% 25% 47%
Poor product design 20% 33% 42%
Product / service did not work as advertised 26% 33% 35%
Product / service difficult to use 29% 29% 33%
Service outage 39% 32% 25%
They kept contacting me after I chose to stop doing business with them 46% 28% 17%
Customer service not empowered to help properly 56% 29% 9%
Company policies that are not customer-centric 58% 29% 6%
Was given inaccurate or conflicting information 62% 27% 8%
Long waits / Poor response times 63% 26% 6%
Heard of or observed poor treatment of other customers 64% 21% 8%
They lost / ignored my customer status and instead treated me like a
first-time customer
65% 23% 8%
Customer service un-knowledgeable / poorly trained 70% 20% 6%
Completely unresponsive - never heard back 72% 20% 6%
Dishonest / unethical behaviour 79% 12% 5%
Customer service rude / offensive 85% 8% 4%
Average Failure Attribution 53% 25% 17%
Much of what
brands
view as
“CX system
capabilities”
are seen by
customers as
human
touchpoints
Humans vs. Technology:
Where Customers Attribute Blame

31. 31
Where Are the Top
Takeaways to Drive
CX Success?

32. Top Takeaways for Driving CX Success
1 Minimize the biggest areas for failure
Start by solving:
1. Long wait / response times
2. Poorly trained customer service representatives
3. Lack of empowered customer service representatives
4. Inaccurate / conflicting information available to customers

33. Top Takeaways for Driving CX Success
2 Partner with your customers on resolution
When a failure does happen, your customers are not ready
to throw in the towel.
Partner with them and push to a resolution.

34. Top Takeaways for Driving CX Success
3 Leverage technology to optimize for
CX success
While humans get more of the blame for failures,
technology gets more of the credit for successes.
Audit your systems to ensure your technology and people
strategies are working well together to deliver the best
experiences.

35. 35
Learn more at:
www.sdl.com/cx-wakeup