Report: The Customer Experience-Loyalty Connection

We just published a new Temkin Group report, The Customer Experience-Loyalty Connection.

The report examines the connection between customer experience, loyalty, and revenues across 12 industries: airlines, banks, credit card issuers, health plans, hotel chains, Internet service providers, insurance companies, investment firms, personal computer makers, retailers, TV service providers, and wireless carriers.

Here’s the executive summary:

Temkin Group analyzed the correlation between customer experience and loyalty across 12 industries: airlines, banks, credit card issuers, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, computer makers, retailers, TV service providers, and wireless carriers. Customer experience leaders enjoy a double-digit advantage in customers willing to buy more from them, reluctant to switch business away from them, and likely to recommend them. A modest improvement in customer experience can drive between $179 million (for health plans) and $308 million (for hotel chains) of incremental revenue over three years for every $1 billion in annual sales.

Download report for $195

Here’s a figure from the report that shows the correlation between cusotmer experience and loyalty for 143 companies:

We built a model based on this correlation that identifies the increase in revenues from good customer experience in three areas: more products being purchased by existing customers, fewer customers switching their business away, and new business generated by word of mouth. Here’s an overview of those findings from the report:

Download report for $195

The bottom line: Improving your customer experience makes good business sense.

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:

3 thoughts on “Report: The Customer Experience-Loyalty Connection”

  1. Hey Bruce,

    Great research here – thanks for giving us an insight into your wonderful work.

    I teach a course on institutionalizing ‘user experience’ in large organizations for Human Factors International. I would love to be able to show the graph titled ‘Good Customer Experience Generates Revenues’ during our discussion of the ROI of good user experience. Would you mind if I used a screen shot of that graph? I would, of course, show the source as well as your URL on the slide and mention the research that you do.


    Jeffrey Easton

    1. Hi Jeffrey: Glad to hear that you like the research. You can use the figure in your class. But you don’t need to take a screen shot. If you right mouse click on the graphic then you can save the picture file and insert it in your slides. By the way, we’ll be publishing an update to that report in the next month or so.

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