Linking CX Investments To Financials: What The Research Says

Brands continue to invest in customer experience—and that investment is validated by independent analysts in the CX space. MarketsandMarkets projects that the CX space will grow from $4 billion in 2014 to $8 billion in 2020.

Why do brands continue to invest in CX? Because there is a high ROI.

In the recent Market Force webinar featuring Forrester, titled “Show Me The Money”, Forrester profiled companies that they have identified as CX leaders and CX laggards. Using public data, they found that CX leaders beat CX laggards on any number of financial metrics, ranging from compound annual growth to shareholder returns. The webinar showcased differences in leaders and laggards like AT&T vs. Comcast, Southwest Airlines vs. United Airlines, Edward Jones vs. Morgan Stanley, and Amazon vs. Walmart.

In sum, Forrester Research finds that CX leaders, in comparison to laggards:

• Grow revenue faster
• Drive more purchase intent
• Earn greater pricing power
• Lower their service costs
• Reduce regulatory compliance risks

Market Force’s research findings focused on applying this research within a brand, looking at the CX ROI for location leaders vs. location laggards. In sum, our own work parallels that of Forrester. We found that CX location leaders, in comparison to laggards:

1. Have higher revenue than other locations in the system
2. Reduce costs of service
3. Reduce regulatory compliance issues
4. Have more loyal customers and are less vulnerable to competitive threats.

When brands don’t meet their growth and profit goals, they look to cut the budget. These joint research findings definitively make the case that CX investments should be one of the last components to be cut from your budget.

If you need help in linking your CX investments to ROI, please schedule a briefing with our CX experts. We’re happy to walk you through relevant case studies and best practices for making the CX-ROI link crystal clear to executives.