Great study from Forrester Research entitled, "The Business Impact of Customer Experience, 2013."
In the study, Forrester finds a strong positive correlation between consumers' ratings of a firm in their Customer Experience Index and consumers' willingness to buy from the company again (0.71), as well as the likelihood to recommend that company (0.64).
Likewise there is a negative correlation between the Customer Experience Index and the consumers' likelihood to change to another brand or service provider (-0.42).
Forrester was able to build a predictive model that includes:
- Incremental purchases from existing customers in the same year.
- Revenue saved by lower churn.
- New sales driven by word of mouth or referrals.
The potential incremental revenue in each segment is huge:
- Wireless service = $3,149 million
- Airlines = $2,339 million
- Hotels = $1,131 million
- Credit card providers = $866 million
- Car rental companies = $447 million
- Medical insurance = $306 million
- Insurance providers = $252 million
- TV service providers = $261 million
- Banks = $237 million
- Retailers = $227 million
- Internet service providers = $161 million
- Iinvestment firms = $105 million
- Consumer electronics manufacturers = $88 million