What is Customer Experience
Customer Experience (CX) is all interactions people have with or about an organization’s messages, people, processes, products and services. – The Customer Experience Revolution
According to Forrester Research, the six disciplines for great customer experience are strategy, customer understanding, design, measurement, governance and culture. Define your customer experience through strategy and customer understanding. Define your customer experience through design and measurement. Transform your customer experience through governance and culture.
Markets change, technology change and peoples’ needs and desires change. To consistently deliver a great experience for your customers, you need to understand your changing market, technology and customers. You need to continuously monitor your market and technology and consistently communicate with your customers about what they like and don’t like and what they want next.
Market leaders builds relationships with their customers to create long-term value for their customers and sustainable revenue for their organization. They are developing enduring connections to secure their brand and trust. The experiences you create for your customers can either draw them towards your brand, products and services or away from it. Let us help you make every experience great.
Customer Experience ROI
CX Leaders Have Significantly Higher Returns Than the Average S&P 500 Index.
Watermark Consulting’s 2019 Customer Experience ROI study examined the cumulative total stock return of the Leaders and Laggards in CX over the span of eleven years. They compared those results against that of the average S&P 500 Index during that same period.
The CX Laggards had a cumulative return of 63.1%
The S&P 500 Index had a cumulative return of 138.7%
The CX Leaders had a cumulative return of 183.3%
Customers Who Have Positive Experience Spend Significantly More
Harvard Business Review’s research aimed to predict future revenue based on prior customer experience. The results demonstrated a stark discrepancy in future spending behaviors between customers who had positive experiences versus those with negative experiences; 140% to be exact. Customers who had the most positive experiences spent 2.4x the amount that customers with the worst experiences spent.
Even a Moderate Investment in CX Shows a Significant Return on Investment
Tempkin Group examined over 300 companies across 20 industries to illustrate the relationship between ROI and CX. They gathered consumer data from 10,000 respondents in the US. Based on consumers’ responses, the research revealed a positive correlation of 0.82 between CX and repurchasing.
Tempkin went further to create a model that would analyze the impact of a moderate CX improvement on a $1 billion company across 20 industries. The results showed significant benefits across all industries. They concluded that, on average, with a moderate CX improvement companies can gain over $775 million over the span of three years. Additionally, they determined that software companies were predicted to gain $1 billion.