Great insights from Bruce Temkin and Temkin Group with the following statistics from "ROI of Customer Experience 2015" which looked at the connection between customer experience (CX) and loyalty for 10,000 consumers and 300 companies across 20 industries.
- 87% of consumers who give a high rating for emotion were likely to make multiple purchases, compared to 13% who gave a low rating.
- 76% of consumers who gave a high rating for emotion were promoters compared to six percent who gave a low rating.
- 63% of consumers who gave a high emotion rating were likely to forgive a company's mistakes compared to 11% giving a low rating.
The findings from Temkin Group are reinforced by findings from Forrester:
- CX leaders grow revenue three times faster than CX laggards. On average the eight CX leaders had a compound annual growth rate (CAGR) of15% while the laggards grew at an average of 2.5%.
- Companies with superior CX can charge more for their products and services. This is especially true for customers who rate an experience as "outstanding."
- Superior CX drives customer loyalty and purchase intent. When customer has a good experience they'll tell their friends about it - in person and online, they'll spend more with you and be less likely to move to a competitor if you have a hiccup in service.
I've written numerous posts of the need to create an emotional connection to the brand.
I've worked with companies where the SaaS customers were not engaged with the brand and renewal rates were dismal. I've worked with a professional services who was much more concerned with sales than customer sat, CX and retention with similar results.
You need to establish a two-way relationship, ideally a dialogue, with your customer where you are learning what's important to your customers, while at the same time convincing them of your commitment to meeting their needs. The more you learn about customers' needs and wants, the more you'll be able to make their lives simpler and easier which will lead to a "customer for life."
The more you establish an emotional connection with your customer, and provide a solid CX, the more loyal they will be, you'll see less churn, and greater revenue.
As more companies learn about the positive ROI in engagement and CX, perhaps they'll reallocate their marketing spend from lead gen to customer retention?
What are you doing to enhance the emotional engagement and CX of your customers with your brand?