Trends Report

Customer Recommendations Have Only A Small Business Impact For Big Brands

November 18th, 2020
Maxie Schmidt, VP, Principal Analyst
Maxie Schmidt VP, Principal Analyst
Niraj Patel, null
Niraj Patel
James Williams, null
James Williams
With contributors:
Brian Mukasa , Harley Manning

Summary

Improving customer experience (CX) impacts three key drivers of a company’s revenue: customer retention, enrichment, and advocacy. Revenue growth through increased retention and enrichment makes up more than 90% of the top-line impact from improving CX. The business impact of CX via recommendations is small, but it accelerates with high Customer Experience Index (CX Index™) scores. That’s why CX pros can drive customer acquisition through advocacy most by improving already good or great experiences. This research guides CX pros in examining customer retention, cross-sell, and upsell data to use the revenue impact of improved CX in a business case.

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