October 19, 2017
If you want to make the case for CX, check out the new data we just published in the report “Drive Business Growth With Great Customer Experience, 2017” (paywall).
In our analysis, we modeled the effect of changes in CX on loyalty and business growth for 17 industries. We included four new industries per popular demand: Health insurance providers, direct brokerage firms, full-service investment firms, and over the top service providers.
The potential upside of a 1-point improvement in CX Index ranges from $874 million for a large mass market auto manufacturer to $5 million for a large credit card provider.
If you want to make CX investment decisions you must understand the shape of the relationship between CX and business growth. We discovered three distinct patterns in the interplay between CX Index scores and business growth.
- Growth and CX quality move in lockstep – e.g., rental car providers
- Growth from better CX gets progressively smaller – e.g., wireless service providers
- Growth from better CX gets progressively bigger – e.g., direct banks
You need to know the distribution of your customers on a scale from very poor to excellent experiences PLUS the shape of the relationship for your firm. For example, if a firm faces diminishing returns from CX, that suggests it should focus on improving poor experiences. But if many customers of that company have good experiences, the firm may benefit most from improving those already good experiences because the larger number of customers drives the total gain up.
For more details, check out the report “Drive Business Growth With Great Customer Experience, 2017” (paywall).