Thanks to a post on The Engaging Brand I read about study done by Peer Insight.
They did a three year study of 40 Fortune 500 companies – and the results clearly make a case for the ROI a company can realize by focusing on being purposeful about the customer experience.
The study showed that companies that focused upon customer experience design outperformed the S&P 500 by a 10-1 margin. While I think that’s a very nice argument for crafting the customer experience, I think it is only one way to measure the value.
Here are some other valuations you need to consider:
~ Employee retention. (Use this calculator if you have a strong stomach.)
~ Customer retention. Multiply your new customer acquisition costs times 5.
~ Loss of word of mouth. The best marketing tool around. And you don’t have any.
~ Fewer surprises. When you’ve planned the customer experience, you can anticipate problems before they sneak up on you.
And that’s probably just the tip of the iceberg. What other benefits/ROI are there for purposefully designing the customer experience?