Improving Customer Experience By One Point Can Drive More Than A Billion Dollars In Revenue
Want To Know The $ Value Of Improving CX By One Point?
We calculated it for you — at least if you are in one of the 15 industries that our new report “How Customer Experience Drives Business Growth, 2019” features. And if you aren’t, check out how we calculated the upside of CX (see below) so you can apply the same logic in your firm.
A sneak peek into the results: Improving CX can be massively worthwhile. For example, for mass-market auto manufacturers, improving CX by one point can lead to more than $1B in additional revenue! For all the details on this and the other 14 industries, check out the new report, “How Customer Experience Drives Business Growth, 2019.”
Check Out How We Calculate These Numbers, And Do It For Your Own Firm!
Should you just use our numbers for your firm? Yes and no. Definitively use them to get buy-in that CX drives business results. But don’t just assume your numbers will look the same. Instead, calculate the business upside of CX for your own firm.
Below, you’ll find the three steps and the required data for calculating the impact of improving the Customer Experience Index (CX Index™) score by one point:
- Calculate the business impact of each customer’s (dis-)loyalty. Our CX Index survey measures CX and customer loyalty (intentions to stay with a brand, buy more from a brand, and recommend a brand). We supplement this data with data from other CX Index survey questions about the customer’s purchasing behavior and information from other Forrester data and secondary research. With this data, we calculate the business impact of each customer’s loyalty. This calculation depends on how companies in various industries make money.
- Build industry-specific models that show how CX drives growth. We then built models that describe how CX drives business growth across a range of CX Index scores. This year, we decided to include all four years of CX Index data (2016 to 2019) to reveal the long-term patterns of how CX affects business growth. And we adjusted assumptions and our calculations to reflect the latest market changes.
- Apply the models to calculate the upside of improving CX by one point. We used the insights from the model to predict the impact for the average customer of improving the industry’s CX Index score by one point. We then multiplied that per-customer upside by the average number of customers a big brand in the industry typically has.
Build a solid financial business case for CX at your firm with Capturing The ROI of CX, a complimentary step-by-step guide and ROI calculator.