Customer Experience Can Generate $100s of Millions in Revenues, According to Groundbreaking Research From Temkin Group Research
Large-Scale Consumer Research Study Finds Strong Correlation Between Customer Experience and Loyalty in the U.S. and UK
WABAN, Mass., March 28, 2012 /PRNewswire/ -- A new research report published by Temkin Group, The ROI of Customer Experience, uncovers the connection between customer experience and loyalty for 272 large companies in the U.S. and UK.
The research, which is based on a study of thousands of consumers, shows that customer experience is highly correlated to loyalty in both the U.S. and the UK. Temkin Group's analysis shows that a $1 billion U.S. company can generate between $141 million and $382 million over three years if they make a modest improvement in the customer experience they deliver. Likewise, a 1 billion GBP UK company can generate between 145 million GBP and 263 million GBP.
The research report identifies the connection between customer experience and three areas of loyalty across multiple industries. In the U.S., where Temkin Group analyzed 18 industries, fast food chains, retailers, and supermarket chains experience the largest gains from customer experience improvements. In the UK, where Temkin Group analyzed six industries, the largest gainers are retailers and credit card issuers.
The research compared customer experience leaders, those companies that significantly outperform their industry peers, with customer experience laggards that have poor customer experience ratings. Companies that are customer experience leaders in both countries enjoy at least a 16 percentage point advantage over customer experience laggards in key loyalty areas like the willingness of consumers to buy more products from them, the reluctance of consumers to switch business away from them, and the likelihood of consumers to recommend them to friends and colleagues.
"Our research quantifies what many people intuitively understand: customers are more loyal to companies that treat them well," states Bruce Temkin, author of the report and Managing Partner of Temkin Group.
In the U.S., the research uses a survey of 10,000 consumers to examine loyalty to 206 companies across 18 industries: Airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, TV service providers, and wireless carriers. In the UK, the research uses a survey of 3,000 consumers to examine loyalty to 66 companies across six industries: Banks, computer makers, credit card issuers, grocery chains, insurance carriers, and wireless carriers.
For more information about Temkin Group, visit http://www.temkingroup.com.
About the author, Bruce Temkin
Bruce Temkin is widely recognized as a customer experience thought leader and is Customer Experience Transformist and Managing Partner of the Temkin Group. He is also the author of a very popular blog, Customer Experience Matters. Prior to forming Temkin Group, he was a VP at Forrester Research for 12 years. Bruce is a highly demanded speaker who delivers keynotes on a variety of topics such as customer experience, customer-centric culture, branding, employee engagement, and leadership. He is also the co-founder and Chair of the Customer Experience Professionals Association (CXPA.org), a global non-profit organization dedicated to the advancement of customer experience management.
About Temkin Group
Temkin Group is a leading customer experience research and consulting firm with one simple goal for its clients: increase customer loyalty by becoming more customer-centric. The company combines customer experience thought leadership with a deep understanding of the dynamics of large organizations to help senior executives accelerate their results. For more information, contact Bruce Temkin at 617-916-2075 or firstname.lastname@example.org.
SOURCE Temkin Group