New Temkin Group Study Finds Improved Customer Experience Has Potential to Generate $100s of Millions in Additional Revenue

WABAN, Mass., Sept. 9, 2014 /PR Newswire/ -- A new research report published by Temkin Group, ROI of Customer Experience, 2014, finds a strong connection between improved customer experience and increased consumer loyalty-- leading to increased company revenue.

The research shows that a modest increase in customer experience at a typical $1 billion company can earn an additional $272 million to $462 million in revenues over three years. The organizations with the largest to gain are hotels, fast food chains, and retailers.

Based on a survey of 10,000 U.S. consumers, Temkin Group found that consumers who have a good customer experience are more loyal to companies across all 19 industries included in the study: airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, TV service providers, and wireless carriers.

According to Bruce Temkin, author of the report and Managing Partner of Temkin Group, "Great customer experience isn't just a nice thing to provide for customers; it's a critical component for improving the bottom line by increasing customer loyalty."

Additional findings in the report include:

• Examining the loyalty and repurchase plans for customers of 268 companies reveals a very high Pearson Correlation coefficient of .83.
• Net Promoter^® Scores of companies with very good customer experience ratings average 22 points higher than the scores of companies with poor customer experience, with a very high Pearson Correlation coefficient of .77.
• Across all 19 industries, loyalty is highly correlated to the three components of the Temkin Experience Ratings: functional, accessible, and emotional. In almost all cases, the emotional element of experience has the highest correlation.
• Auto dealers retain the most business from existing customers ($184 million over three years) when they improve customer experience, whereas investment firms retain the least business ($94 million over three years).
• In three industries, typical companies generate more than $100 million of additional revenues over three years from word of mouth by improving customer experience: supermarkets, fast food chains, hotels, and retailers.

This research report can be accessed from the bog, Customer Experience Matters, at ExperienceMatters.wordpress.com or at the Temkin Group's website, www.TemkinGroup.com.

For more information about Temkin Group, visit www.TemkinGroup.com.

About Temkin Group: Temkin Group is widely recognized as a leading customer experience research and consulting firm. Many of the world's largest brands rely on its insights and advice to steer their transformational journeys. Temkin Group combines customer experience thought leadership with a deep understanding of the dynamics of organizations to help accelerate results. Rather than layering on cosmetic changes, Temkin Group helps companies embed practices within their culture by building four critical competencies: Purposeful Leadership, Employee Engagement, Compelling Brand Values, and Customer Connectedness. The firm's ongoing research identifies leading and emerging best practices across a wide range of activities for engaging the hearts and minds of customers, employees, and partners. Temkin Group also publishes Temkin Ratings (degenerating.com), an annual evaluation of companies based on consumer feedback. For more information, contact Bruce Temkin at 617-916-2075 or send an Email.

About Bruce Temkin: Bruce Temkin is widely recognized as a customer experience thought leader and is Customer Experience Transformist and Managing Partner of Temkin Group. He is also the co-founder and Chair of the Customer Experience Professionals Association (CXPA.org), a global non-profit organization dedicated to the advancement of customer experience management. Bruce is also the author of a very popular blog, Customer Experience Matters®. Prior to forming Temkin Group, he was a Vice President at Forrester Research for 12 years where he ran the customer experience, eBusiness, financial services, and B2B sectors and was the most-read analyst for 13 consecutive quarters.

Customer Experience Matters is a registered trademark of Temkin Group.

Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

SOURCE Temkin Group

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