August 4, 2008

A Closer Look At Customer Experience And Loyalty

The Correlation Between Customer Experience And Loyalty For 112 Firms

This is the 12th document in the "Value Of Customer Relationships" series.

by Bruce D. Temkin

with Rachel Zinser

Executive Summary (This is a document excerpt)

Forrester's previous analysis of nine industries showed that good customer experience correlates highly to loyalty — especially when it comes to consumers' plans for making additional purchases. For this report, we took a look at how the correlation between customer experience and loyalty differed between the 112 firms in that analysis and each of their respective industries' averages. It turns out that 20 firms, including Cablevision and Farmers Insurance, have an above average correlation for both measures of loyalty that we examined. Forty-five firms, including Vanguard and the Gap, fell below their industry averages for correlation with both loyalty measures. There's nothing inherently good or bad about having a high level of correlation between customer experience and loyalty. The differences are driven by a combination of industry-specific and company-specific factors. But firms with a higher degree of correlation have potentially more to gain by improving their customer experience.

Buy Risk-Free

Download and print PDF immediately. Price: US $499

Our Money-Back Guarantee: If you are not completely satisfied, return it for a full refund within three weeks of your online purchase.

Already a Forrester Client?
Log in to read this document.