Can you correlate customer experience to a revenue boost?

Customer Experience

Most people would agree that improving customer experience yields a positive impact on your bottom line. That’s part of every presentation I make to prospective users of Fonolo. But assigning a quantitative value to that is always difficult.

Here’s a great report that I just found by Forrester’s Bruce Temkin making just that case. It’s called Customer Experience Boosts Revenue. Temkin analyzed consumer data to figure out how a change in customer experience affects loyalty and how that can affect revenues.

Here are some of the key findings:slide1-graphic

  • The revenue change from a 10 point increase in a firm’s Customer Experience Index. It results in a $284 million change for every $10 billion in revenue (average across 12 industries).
  • Some of the industry-specific data:
    • Five largest revenue changes: Hotels ($311 million), credit card providers ($308 million), banks ($305slide2-graphic million), wireless carriers ($305 million), and TV service providers ($302 million).
    • The most change in additional purchases and reduction in churn: Hotels and banks.
    • The biggest increase from word of mouth: Airlines and wireless carriers.

The bottom line: Customer experience is a great investment.

Fonolo Resource cover image

[FREE WEBINAR] Learn why your credit union is struggling to get new members.

Join Fonolo the Linn Area Credit Union, and the NCUCC for an exclusive webinar that will help you take the brakes off your credit union's growth.

Register Now
roi