For Customer Experience Professionals

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	March 24, 2008 The Business Impact Of Customer Experience Poor Experiences Can Cost Large Firms More Than $180 Million Per Year by Bruce D. Temkin with Harley Manning, Olga Melnikova, Steven Geller	Average: 9  (4 ratings)

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Executive Summary

Executives know that customer experience is important, but they can't always tie it directly to business results. So we examined the correlation between the customer experiences delivered by 112 US firms (as defined by Forrester's Customer Experience Index) and the loyalty of their customers. Our analysis shows that good customer experience correlates highly to loyalty — especially when it comes to consumers' plans for making additional purchases. When we examined how this might affect the annual revenue of individual companies, we found that customer experience quality could cause a swing of $242 million for a large bank and $184 million for a large retailer. Customer experience quality was most highly connected to the purchase plans of Fifth Third's customers and the intentions to switch of Cablevision and Nextel customers.

TABLE OF CONTENTS

• Customer Experience Correlates To Loyalty Across All Industries
• Better Customer Experiences Can Generate Significant Revenue
• Which Firms' Customers Are Most Affected By Customer Experience?

WHAT IT MEANS

• Customer Experience Can Be A Great Investment
• Supplemental Material
• Related Research Documents

This is an excerpt