We just published a new Temkin Group report, The ROI of Customer Experience. The report provides groundbreaking analysis of 10,000 US consumers and 3,000 UK consumers, identifying the financial benefit of improving customer experience. Here is the executive summary:
An analysis of US and UK consumers shows that customer experience is highly correlated to loyalty. Customer experience leaders have more than a 16 percentage point advantage over customer experience laggards in consumers’ willingness to buy more, their reluctance to switch business away, and their likelihood to recommend. A modest increase in customer experience can result in a gain over three years of up to $382 million for US companies and up to £263 million for UK firms, depending on the industry. While the case for loyalty is compelling, companies should determine the business impact that customer experience has on their specific business by following our five step process. To achieve these results, however, companies must create customer experience metrics programs that embed these measurments into how they run their business.
I put together this infographic which captures some of the high-level findings from the report:
The bottom line: Customer experience correlates to loyalty.