We just published a Temkin Group report, ROI of Customer Experience, 2018. Here’s the executive summary:
To understand the connection between customer experience (CX) and loyalty, we examined feedback from 10,000 U.S. consumers describing both their experiences with and their loyalty to different companies. The CX scores used in this model come from the 2018 Temkin Experience Ratings (TxR), which evaluated 318 companies across 20 industries. Our analysis shows that:
- The correlation between CX and repurchasing is very high (Pearson correlation= 0.82).
- There’s a 21-point difference in Net Promoter Score between consumers who’ve had a very good experience with a company and those who’ve had a very poor experience.
- CX is made up of three components – success, effort, and emotion. While all three elements impact customer loyalty, an improvement in emotion drives the most significant increase in loyalty.
- We built a model to estimate how a modest improvement in CX would impact the revenue of a typical $1 billion company across in 20 industries. On average, companies can gain $775 million over three years. Software companies stand to earn the most ($1 billion over three years), while utilities stand to earn the least ($476 million over three years).
- The report contains data charts showing how loyalty levels change based on customer experience across 20 industries.
- We also describe a five-step process for calculating the ROI of CX for your organization.
Here are two of the 14 graphics in the report:
- Customer Experience Is Highly Correlated With Loyalty
- Correlates with repurchasing
- Links to Net Promoter Score
- Significantly impacts emotion
- CX Improvements Results: Up to $1.1B In Revenue Over Three Years
- CX and Loyalty Across 20 Industries
- Recommend a company
- Repurchase from a company
- Trust a company
- Forgive a company
- Try a new offering right away
- Build Your Own CX ROI Model
Figures in the Report:
- Customer Experience Correlates to Future Purchase Intentions
- Customer Experience Correlates to Net Promoter® Scores (NPS®)
- Impact of Success, Effort, and Emotion on Loyalty (Average Across 20 Industries)
- Elements Used in Model to Derive Revenue Impact Based on Improvement in Customer Experience
- Improvements in Customer Loyalty From Modest Improvements in Customer Experience
- Revenue Increases From A Moderate Improvement in Customer Experience
- Revenue Increases From A Moderate Improvement in Customer Experience (Details)
- Loyalty Differences Across CX Performance Levels
- Recommendations Based on Customer Experience
- Likelihood to Repurchase Based on Customer Experience
- Trust Based on Customer Experience
- Forgiveness Based on Customer Experience
- Try New Products Based on Customer Experience
- Steps for Calculating the Value Of Customer Experience