Many companies recognize a significant return on investment from the customer experience they provide, according to a recent study by the Temkin Group. If they improve the experience, there are financial benefits associated with increased customer satisfaction and loyalty.
The study found that there is a strong correlation between customer experience and loyalty. Brands that provide clients with superior experiences increase the likelihood of customers buying more and decrease the chances that shoppers will take their business elsewhere. As a result, companies that offer better experiences can generate up to $382 million more in revenue over the course of three years, depending on the industry.
According to Forrester, businesses can get a handle on the ROI of the experience they are providing their customers, and can project the effects of improvements by following six steps - documenting the improvements that need to be made, deciding how those goals are expected to change consumer behavior, assigning a monetary to each behavior, estimating the best and worst case scenarios for each effort, estimating the cost of the project and plugging the data into a spreadsheet to arrive at a range of potential ROI.
Brands should measure the success of various efforts to learn about what is working well and what needs work, the source reports.