CX ROI: Better Customer Experience = More Purchases

We examined the connection between customer experience and loyalty by tapping into our survey of 10,000 U.S. consumers to analyze the relationship between Temkin Experience Ratings (TxR) and future purchase intentions.

To determine future purchase intentions, we asked consumer how likely they were to purchase more from the company in the future. We calculated the percentage of each company’s customers who selected “6,” or “7” on a scale from “1” (not at all likely) to “7” (extremely likely).

In the chart below, we normalize the data for 329 across 20 industries by subtracting each company’s scores from the average for their industries.

As you can see, CX is highly correlated to future purchases (R= 0.75).

CX ROI: Customer experience correlates to future purchases

In the chart below, we segmented consumers into five groups based on the TxR scores they gave companies (an average of success, effort, and emotion ratings). We then averaged the future purchase intentions of those groups across the 20 industries.

As you can see, consumers who have had a very good CX are 54 %-points more likely to buy from a company than consumers who have had a very poor CX.

CX ROI: Customer experience correlates to future purchases

The bottom line: If you want loyal customers, improve your customer experience

Written by 

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.

Leave a Reply

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