Friday, April 13, 2012

Idea Gathering: Customer Experience News: ROI Roundup

The Total Customer Experience Leaders Summit provides both B2B and B2C case studies and translating these innovations and insights is a huge part of the value of the conference. Our unique idea gathering wrap-ups between sessions facilitate this translation and were one of our most highly rated features last year.

Here on the blog we're doing a regular series of idea gathering wrap ups, pulling together some of our favorite stories on customer experience, customer experience design, and overall customer-centricity. Share with us in the comments to add your thoughts!

Curious about The ROI of Customer Experience? Some recent Temkin Group research in both B2C and B2B environments as well as research by Forrester shows that "Yes, there is a revenue impact tied to customer experience."

According to that blog post on the SmartPlanet blog, the ROI is especially clear for hotels and wireless service providers, but relevant for all industries. Breaking it out:
"Forrester found that 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."
Meanwhile in a report by J.D. Power and Associates, we learned that a fully satisfying customer experience (from beginning to end) can trump low prices. According to this post:
 ""While value is important, consumers want more than simply the lowest price," said J.D. Powers' Gina Pingitore, chief research officer, in a press release. "They expect a superior product that is delivered in a compelling presentation, through fast and easy-to-understand processes that are supported by responsive and concerned people. In addition, the price must be perceived as fair and competitive."
One company that could walk away from this feeling positive? Best Buy. In this article by Retail Traffic Mag, the author recommends
"Closing 50 underperforming stores is a move in the right direction for operational efficiency, but Best Buy shouldn’t be competing with on price, they say—it should be competing on superior customer experience."
Overall, we're taking away one lesson from all this research: Good customer experiences have a proven ROI, and can be real differentiators for a company. Do you agree?

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