If you are like other CX pros, at some point in your CX career you’ll encounter the “money question.”
Your CEO will ask you: “What’s an improvement in our customers’ experience worth in dollars and cents?” And it’s likely that you won’t have a (good enough) answer.
I say that because I know that 50% of CX pros we surveyed have not modeled how CX quality influences customer behavior.
We know great CX drives revenue.
But to make the case, you need a more nuanced and sophisticated understanding.
So we used data from our Customer Experience Index (CX Index™) and modeled the revenue impact of improving CX.
To do that, we asked three questions:
What is a customer’s loyalty (retention, enrichment and advocacy) worth in revenue dollars?
Is there a relationship between CX quality and loyalty-based revenue?
How does the relationship between CX and revenue potential differ by industry?
Our models gave us nuanced insights into the relationship between CX and revenue. Here are some of our discoveries:
Read more (report after paywall) Drive revenue with great customer experience – Our 2017 analysis will help you make the case for CX investments | Forrester Blogs
This great silence, this neglect of customers, especially when anything goes wrong, is partly a byproduct of the financialization and virtualization of reality.
But most of all, it is a result of our collective failure to police the emerging monopolies, public and private — from Amazon and Google to Southern Rail — which have so little economic pressure to keep customers loyal.
It is both a symptom and cause of rising inequality — in this case between customers and the organizations that serve them only in theory.
In reality they serve themselves.
And there lies the clue to tackling the problem: make them smaller.
But we have to start just by naming the phenomenon. There they are all around us: the Absent Corporations.