Forrester: Does Customer Experience Really Drive Business Success?

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Does Customer Experience Really Drive Business Success? Business Case: The Customer Experience Ecosystem Playbook by Harley Manning July 15, 2015 For CustoMer experienCe proFessionals foRRESTER.Com Key takeaways Evaluating The RoI of Good CX By Total Stock market Returns Can Be misleading over a multiyear period, the total stock returns of a portfolio of Cx leaders beat those of a portfolio of Cx laggards. However, factors ranging from market bubbles to large corporations rolling up diverse types of businesses into a single ticker symbol can obscure the true relationship between Cx and business success. Correlating CX To Revenue Growth Reveals The Real Business Value of CX Cx drives three types of customer loyalty: retention, enrichment, and recommendation. increased customer loyalty in turn tends to drive increased revenue growth. But for these drivers to affect an industry, customers must be free to switch providers, and providers must offer differentiated Cx. CX Drives Revenue Growth To Different Degrees Depending on Industry Dynamics Companies with customers who have many equally convenient and strongly differentiated choices -- like online retailers and investment firms -- see major revenue upside from superior Cx. Companies with trapped customers, like health insurers, or little Cx differentiation among direct competitors, like traditional retailers, will see less impact on their revenue growth. Why read this report it's the age of the customer, when technology and economic forces have changed the world to such a great extent that an obsession with winning, serving, and retaining customers is the only possible response. transforming the customer experience is one of four critical market imperatives required for shifting companies toward customer obsession. But how can customer experience (Cx) professionals prove that to their executives? not by pointing to the stock market gains that accrue to Cx leaders because there's too much noise in the data. instead, the proof lies in comparing the revenue growth of companies with superior customer experience to that of their direct competitors with comparatively inferior customer experience. this report details how we went about doing exactly that and the surprising results we uncovered.

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