WABAN, Mass.–It may seem self-evident, but a new study reveals just how closely interlinked is the connection between customer experience (CX) and loyalty.
The just-published Temkin Group report, ROI of Customer Experience, 2018 is based on feedback from 10,000 U.S. consumers describing both their experiences with and their loyalty to different companies. The CX scores used in this model come from the 2018 Temkin Experience Ratings (TxR), which evaluated 318 companies across 20 industries.
The Findings
According to Temkin Group, the analysis found:
- The correlation between CX and repurchasing is very high (R= 0.82).
- There’s a 21-point difference in Net Promoter Score between consumers who’ve had a very good experience with a company and those who’ve had a very poor experience.
- CX is made up of three components – success, effort, and emotion. “While all three elements impact customer loyalty, an improvement in emotion drives the most significant increase in loyalty,” the company said.
- Having built a model to estimate how a modest improvement in CX would impact the revenue of a typical $1 billion company across in 20 industries, Temkin Group said on average, companies can gain $775 million over three years.