Ongoing research on customer experience and its correlation with loyalty and revenue suggests a connection between a person’s customer experience with a given company and his or her willingness to spend more money with that company. Writing on SmartPlanet this month, Heather Clancy says that organizations should take a moment to consider some updated performance indicators from Forrester Research. Example: The impact of customer experience on hotels and wireless service carriers was more than $1 billion for each industry. For hotels, the potential impact is $1.36 billion, while for carriers it is $1.3 billion. For hotels, approximately $825 million of that extra revenue came in the form of churn reduction (people not going elsewhere); for wireless carriers $788 million came in potential new revenue. The data is part of Forrester’s report, The Business Impact of Customer Experience, 2012. The main finding is that companies with higher customer experience scores tend to demonstrate and drive higher customer loyalty. They are also more likely to win recommendations from those customers, which translates into incremental revenue. Read more at www.forrester.com/The+Business+Impact+Of+Customer+Experience+2012/fulltext/-/E-RES61251
