CX & Loyalty: A Bad Experience Decreases Spending (Charts For 20 Industries)

Can a single bad experience cost a company money? You bet! As a matter of fact, 53% of consumers reported a cut in spending at fast food restaurants and rental car agencies after they’ve had a very bad experience. Those are the highest levels across the 20 industries we examined. At the bottom of this post we’ve assembled a number of industry-specific data charts that you can download and use.

In the report, What Consumers Do After a Good or Bad Experience, 2016, we analyzed how 10,000 U.S. consumers changed their spending after having a bad experience with hundreds of companies.

1612_afterbad_20industryaverage

On average across all industries, 10% of consumers have had a very bad experience in the previous six months. After that experience, 37% of consumers cut back on their spending. As a result, 3,7% of revenues are at risk after a very bad experience (10% x 37%). This at-risk revenue ranges from a high of 6.5% for rental cars down to a low of 1.6% for supermarkets and retailers.

Bad Experience And Spending Change Charts for 20 Industries

If you’re looking for good data for your industry, we’ve put together these 20 industry charts. Feel free to use them within your presentations in accordance with our citation policy.

For example, here’s some draft copy you might use, together with your industry’s chart, in your company’s internal or external blog:

At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why even one bad experience can cost us lost sales.

1612_afterbad_banking1612_afterbad_airlines 1612_afterbad_autodealers 1612_afterbad_computers 1612_afterbad_creditcards 1612_afterbad_fastfood 1612_afterbad_healthplans 1612_afterbad_hotels 1612_afterbad_insurance 1612_afterbad_investments 1612_afterbad_parcel-delivery 1612_afterbad_rentalcars 1612_afterbad_retail 1612_afterbad_software 1612_afterbad_tvservice 1612_afterbad_utilities 1612_afterbad_wireless 1612_afterbad_appliances

About Bruce Temkin, CCXP
I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

3 Responses to CX & Loyalty: A Bad Experience Decreases Spending (Charts For 20 Industries)

  1. Anthony Salerno says:

    With utilities, how exactly would spending decrease from a bad experience? I would appreciate some additional insight as to how a utility customer could control their spend with their utility provider and decide to spend less after a poor experience. I understand airlines, rental car companies, fast food restaurants, but I would love some clarification around the utility data. Thanks a lot!

  2. Peter Strohkorb says:

    Hello Bruce,
    IMHO, many CX executives fall into an unfortunate trap when they first embark on their CX journey. They look at the customer first. I’d value your input into this article on LinkedIn, if I may:

    https://www.linkedin.com/pulse/how-start-your-customer-experience-cx-transformation-peter

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