Customer Experience For Dummies
Book image
Explore Book Buy On Amazon

In 2011, Forrester Research built a model that predicted what would happen if a company improved its customer experience from below average to above average. Incredibly, this model revealed that in certain industries, a better customer experience could result in $1.3 billion in additional annual revenue. More than a billion dollars! Annually!

In 2013, Watermark Consulting took Forrester’s research a step further. It studied the total returns for two model stock portfolios composed of the top ten customer experience companies. Here’s what it found:

For the 6-year period from 2007–2012, the Customer Experience Leaders outperformed the broader market, generating a total return that was three times higher on average than the S&P 500 Index. Furthermore, while the (top ten) Customer Experience Leaders handily beat the S&P 500, the (bottom ten) Laggards trailed it by a wide margin.

According to Jon Picoult, Watermark’s founder, leaders in customer experience had better retention rates, greater wallet share, and all-around more cost-efficient processes and services. Imagine the poor results for those companies at the opposite end of the spectrum!

Along similar lines, the Temkin Group also performed a large-scale study pertaining to customer experience — in this case, proving the high correlation between customer experience and loyalty. The Temkin team found that customer experience leaders enjoy a 15 percent advantage over customer experience laggards in consumers’ willingness to purchase, their stickiness (that is, their reluctance to switch to a competitor), and their likelihood to recommend your offerings to others.

About This Article

This article is from the book:

About the book authors:

Roy Barnes is one of the leading authorities on Customer Experience Design and Performance Management. He has more than 25 years of experience delivering world class results in both the for-profit and non-profit sectors. Bob Kelleher is the author of Employee Engagement For Dummies and the Founder of The Employee Engagement Group.

This article can be found in the category: