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 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 (CXPA.org), 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: www.linkedin.com/in/brucetemkin

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