The December 2015 issue of CRM Magazine included a single-page article from Forrester’s Harley Manning titled Can Better Customer Experience Improve Your Bottom Line? The answer to the question was YES, but it depends on the industry you are in and whether customers are trapped or free to switch to a competitor. This bit of intriguing research reminded me of my previous practitioner experience in corporate and the fact that we were never really able to show correlation between NPS growth and revenue growth (one increased while the other remained flat) and this article by Harley suggests why that is the case.
With highly competitive and proprietary products, you're kind of stuck with service provided by the manufacturer especially when it comes to expertise in service and especially when parts replacement is only available from the manufacturer. This is especially true when the cost of switching is high in both monetary terms as well as technical. Organizations like that aren't necessarily motivated to over-serve or otherwise super-satisfy their installed base of customers. For that reason they can also maintain premium pricing compared to other competitive service providers. Consider the industry you are in when it comes to correlating CX metrics with a financial metrics. The link below summarizes the research and pretty much parallels the article in CRM Magazine.
Better Customer Experience Correlates With Higher Revenue Growth In Most Industries
The link below is a more complete description of the research although there’s a Forrester Report in full for $499 that you can purchase but I think this article does a great job overall of explaining it.
Does Customer Experience Really Drive Business Success?#IndustryBestPractices #NetPromoterScoreNPS #InternalCommunications #BestPractices #FinancialMetrics #CommunicatingROI