Great study from Forrester Research entitled, “The Business Impact of Customer Experience, 2013.”

In the study, Forrester finds a strong positive correlation between consumers’ ratings of a firm in their Customer Experience Index and consumers’ willingness to buy from the company again (0.71), as well as the likelihood to recommend that company (0.64).

Likewise there is a negative correlation between the Customer Experience Index and the consumers’ likelihood to change to another brand or service provider (-0.42).

  • Incremental purchases from existing customers in the same year.
  • Revenue saved by lower churn.
  • New sales driven by word of mouth or referrals.
  • Wireless service = $3,149 million
  • Airlines = $2,339 million
  • Hotels = $1,131 million
  • Credit card providers = $866 million
  • Car rental companies = $447 million
  • Medical insurance = $306 million
  • Insurance providers = $252 million
  • TV service providers = $261 million
  • Banks = $237 million
  • Retailers = $227 million
  • Internet service providers = $161 million
  • Iinvestment firms = $105 million
  • Consumer electronics manufacturers = $88 million
How much are you spending to improve customer experience, which will accelerate sales by generating more purchases, reduce churn and increase word of mouth?
By learning what cell phone users valued most, we were able to reduce churn among heavy users and save $16.2 million in revenue.
By implementing a customer bonding program for a B2B provider of investment research, we were able to reduce churn 50% and save more than $1 million in revenue in year one and untold millions in subsequent years due to repeat business and referrals.
Providing a positive customer experience is worth the expense and the effort.

Article tags:

customer bonding programsimprove customer experience to accelerate salesimprove loyalty and retention
Tom Smith

Tom Smith

Experienced marketing professional who has worked with more than 120 clients in 18 different vertical industries. ♦ Differentiate products and services by improving UX and delivering memorable CX to create an emotional connection to the brand. ♦ Obtain insights from analytics to solve business problems and drive revenue. ♦ Develop and implement marketing campaigns that double traffic and leads in three months. ♦ Certified Marketing Automation Professional ♦ Certified Voice of the Customer (VOC) Professional