Advanced Search

Save Or Share This Report

For Customer Experience Professionals

The Business Impact Of Customer Experience

Poor Experiences Can Cost Large Firms More Than $180 Million Per Year

March 24, 2008

Authors

  • By Bruce D. Temkin
  • with Harley Manning,
  • Olga Melnikova,
  • Steven Geller

Why Read This Report

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.

Get Access

Already a Client?

Log in to read this document.

Become a Forrester Client

Customers are the new market-makers, reshaping industries and changing how businesses compete and win. Success depends on how well and how fast you respond. Forrester Research gives you insights and frameworks aligned to your role to shorten the time between a great idea and a great outcome, helping your teams win in the age of the customer. Contact us to learn more.

Purchase Report

This report is available for individual purchase ($499 USD).

Purchase

Also in Collection: Value Of Customer Relationships

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

Recommended Research