More Info On Customer Experience And Loyalty

In an earlier post, I discussed my research on how customer experience correlates to loyalty. That analysis looked at the link between good experiences and three elements of loyalty: Willingness to buy from the provider, reluctance to switch away from the provider, and likelihood to recommend the provider.

In a recently published research report called Customer Experience And Loyalty: A Closer Look I took a deeper look at the correlations. I wanted to understand the connection between those loyalty elements and each of the three components of Forrester’s Customer Experience Index: Meeting the needs of customers, being easy to work with, and being enjoyable.

Making things a bit more complicated, I examined all of this across 12 industries: airlines, banks, cell phone service providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, medical insurance companies, PC manufacturers, retailers, and TV service providers.

While the data is different across industries, I found some overall trends:

  • Meeting needs tends to correlate the most with purchasing more
  • Being easy to work with correlates the most with purchasing more and making recommendations
  • Enjoyability correlates the most with making recommendations

Looking at the matrix of customer experience and loyalty, here are the industries with the highest level of correlation in each area:


The bottom line: It’s another wake-up call for wireless providers, TV service providers, ISPs, and banks

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (, and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile:

8 thoughts on “More Info On Customer Experience And Loyalty”

  1. customer loyalty programs

    Excellent post on customer loyalty, backend marketing, and recurring billing.
    These are all the best ways to generate as solid business model.
    Long term reccuring customers are where the money is at.
    If you treat and market your loyal customers
    with incentive programs,sales incentives,
    and customer loyalty programs,
    you will be setting yourself up for
    long term success based on proven business principles.

    1. Sales incentives: While I appreciate postive feedback, this reads more like a generic advertisement for your company (for instance, I never discussed anything about recurring billing). Please feel free to comment, but try and add to the conversation with a less obvious marketing facade.

  2. Huh. Just playing with “Social Mention” for an article, and plugged our firm in; unsurprisngly, found only a small handful of mentions, including these somewhat odd posts from Youth and Customer Service (?) that seem to be linking one of my slideshows to your blog. Weird.

    But for whatever it’s worth, I liked your post – we’ve found much the same in our client research, and the correlations between experience and loyalty (including NPS, willingness to recommend, likelihood to repurchase, etc.) are irrefutable, and projectable.

    In any case, I’ll keep an eye on your blog now.


  3. Useful research. The table showing all the correlations in one place is a very handy tool. I’d also say that “meet needs” is a must in any industry. Without meeting the needs of customers any further correlation is unnecessary.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.