My colleague, Maxie Schmidt-Subramanian, recently wrote about how and why CX impacts revenue.
We followed a rigorous, academic approach that started with the premise that improving CX drives customer loyalty.
Using our Customer Experience Index CX Index survey questions about customers loyalty to and spending with a particular brand and combining them with industry-level numerical assumptions, we answered the following question: How likely is a customer to stay with your brand, or spend more, or recommend you to others — and what would that be worth to your organization in dollars and cents?
For each customer, we calculated a loyalty-based revenue potential and a CX Index score.
We tested several models to find the shape that best describes the data.
CX and revenue move in lockstep.