Good CX Improves Revenue—And You Can Prove It
October 27, 2015
Provide a better customer experience (CX) , and your business will do better. It seems like common sense. But research shows that 45% of organizations actually find it very difficult to tie customer experience investments to business outcomes.*
This does not mean that their customer experience management (CEM) initiatives are failing. In most cases, these companies just do not have a good way to measure the impact of the customer experience on metrics like revenue. Only 28% of CX professionals have a model that ties CX to business results. Only 22% are even tracking the financial results of their Voice of the Customer programs**. That makes it difficult, if not impossible, to prove that CX investments make a difference.
Until now, that is. Forrester Research has released a new report titled, “The Revenue Impact of Customer Experience, 2015.” Using data from the Forrester CX Index, they developed industry-specific models to see the difference CX improvements really make.
The Forrester models look at the revenue potential associated with customer retention, enrichment, and advocacy. They then determine how CX improvements influence each of those areas. (For new customer experience practitioners, that could be a hint at good places to start your activities.)
All nine industries covered in the report show a connection between improved CX and increased revenue. In fact, a one-point increase in CX Index score resulted in $15 million to $175 million in revenue, depending on the industry.
Numbers like that make it easy to get executive buy-in for your CEM program, because you can show the value of making your customers happy. Your intuition was right—a better customer experience does translate into a more successful business. And now you can prove it.
To see the revenue impact of CX in your industry, check out a free download of the Forrester Research Report, “The Revenue Impact of Customer Experience, 2015.”
** Forrester Research, 2015.
Lisa Sigler is Sr. Manager of Content Marketing at Clarabridge. For over 16 years, Lisa has used her writing and editorial skills to bring the value and benefits of technology to life. In her current role, she works to demonstrate Clarabridge’s position as thought leader and trailblazer in the Customer Experience Management market. Lisa holds a B.A. of English from Kent State University. Read more from Lisa on Twitter @siglerLis.