Forrester has launched its Brand Experience Index (BX Index), a tool designed to measure how customers perceive a brand and its effectiveness in fostering loyalty and revenue growth. The company announced the index alongside its latest research, emphasizing the interconnectedness of brand experience (BX) and customer experience (CX) as drivers of sustainable business performance.
The new index complements Forrester’s existing Customer Experience Index (CX Index™) and forms the foundation of a framework that evaluates the combined influence of BX and CX on business outcomes. This dual focus, according to Forrester, helps companies create cohesive strategies that enhance customer loyalty and differentiate themselves in competitive markets.
The BX-CX Connection and Business Implications
Forrester’s report, Brand And Customer Experience Together Power Growth, highlights the benefits of integrating BX and CX initiatives. The firm found that companies that align these two dimensions can achieve up to 3.5 times higher revenue growth compared to those that address them independently. By creating a seamless experience that balances brand trust with the ease and emotional resonance of customer interactions, companies can strengthen lifetime customer value and drive higher retention rates.
Sharyn Leaver, Forrester’s chief research officer, underscored the synergy between BX and CX, noting, “Our research finds that brand experience and customer experience are two sides of the same coin. Companies must invest in improving both these elements simultaneously.”
Introducing the Growth Grid
Forrester’s new growth grid is an analytical tool designed to help brands measure their success in winning and retaining customers. Drawing on data from over 313,000 customers and 145,000 prospects across 11 industries and 13 countries, the growth grid enables companies to assess their competitive positioning and identify opportunities for improvement. For example, Forrester’s analysis found that DBS Bank leads in Singapore’s banking sector, while competitors like Standard Chartered and Maybank struggle with customer retention and engagement.
This tool can also help brands evaluate the relative strength of their business lines. For instance, Forrester highlighted the proximity of Wells Fargo’s banking and credit card offerings compared to the broader appeal of PNC’s credit cards. Such insights provide actionable strategies for cross-selling and improving customer conversion rates.
Implications for Marketers
Marketers can draw several lessons from Forrester’s findings. The emphasis on aligning BX and CX reflects a growing trend in the industry, where brand equity and customer loyalty are increasingly tied to seamless, integrated experiences. Forrester’s BX Index provides a framework for marketers to quantify brand impact more effectively and align it with broader customer engagement efforts.
This announcement also comes at a time when many organizations are grappling with heightened customer expectations. The ability to measure and improve both BX and CX offers a pathway to stand out in a crowded marketplace. Tools like the growth grid can serve as diagnostics, helping marketers refine strategies and deploy resources where they are most effective.
Forrester’s BX Index launch aligns with the increasing focus on customer-centric strategies across industries. Research from other firms has also shown that customer loyalty and brand perception are critical to long-term growth, particularly in sectors such as retail, financial services, and travel. As economic uncertainties persist, tools that enable data-driven decision-making are likely to gain traction.
Marketers and business leaders seeking to leverage the BX Index will require a robust understanding of their customer base and a commitment to integrating insights into both branding and operational strategies. By bridging the gap between BX and CX, companies can position themselves for sustained growth and improved market share.
For more information, Forrester’s research and insights are available on its website, though full access to reports may require a subscription.