The Value of Customer Experience

by Jeannie Walters

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What’s the value of customer experience? It’s an interesting question.

Whether by your customers or from within your organization, the value of customer experience can be measured in so many ways.

Value to customers

As customers, we are aware when experiences go really well or really not well. We not only share those experiences, we become loyal (or don’t) because of them.

  • According to the 2012 American Express Global Customer Service Barometer, 75 percent of us say we’ve spent more with a company because of consistent positive customer service experiences.
  • Customers who are surprised and delighted with their experiences share their experiences with others. Thanks to social media, that can be a lot more people.
  • Humans are smart. We know what to expect when we walk into a Costco versus a Saks Fifth Avenue. If the experience exceeds our expectations, we appreciate the extra effort. We feel valued and provide loyalty in return.

Value of Customer Experience

Value to organizations

Organizations must consider business results when considering the customer experience.

  • Even during the recession years of 2007-2012, customer experience leaders averaged double-digit gain in stock performance, besting customer experience laggards by an impressive margin, according to The Watermark Consulting Customer Experience ROI Study.
  • Investing in not just acquiring customers, but keeping them long-term, can pay off in huge dividends. In one report by Adobe, it was estimated that for each 1% of shoppers who return for a subsequent visit, overall revenue will increase by approximately 10%! 
  • Empowered and engaged employees translates into lower turnover, better performance and increased profitability.  A 1% increase in employee commitment can lead to a monthly increase of 9% in sales, according to IES.

While some organizations struggle with defining the “what’s in it for me” of designing a powerful and proactive customer experience, other organizations simply commit to delivering a great experience for their customers. Companies that committed to this include Zappos, Warby Parker and others who enjoy success year over year.


Image credit: FutUndBeidl via Creative Commons

This post is part of the Customer Experience Professionals Association’s Blog Carnival “Celebrating Customer Experience.” It is part of a broader celebration of Customer Experience Day

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Jeannie Walters

Jeannie Walters is the CEO/Founder of Experience Investigators™ by 360Connext, a global Customer Experience consulting firm. She has 20 years of experience helping companies improve loyalty and retention, employee engagement, and overall customer experience. Jeannie is a Certified Customer Experience Professional (CCXP,) a charter member of the Customer Experience Professionals Association (CXPA,) a Professional Member of the National Speakers Association, a Forbes Coaches Council Member, a C-Suite Network Advisor, a LinkedIn Learning and instructor, and a TEDx speaker. Learn more here.

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