Have you ever been asked to show a direct correlation between customer experiences and revenue? In this case study of two companies with different revenue models — one transactional, the other subscription-based, you can see the link between two common elements relevant to all industries: customer feedback and future spending by individual customers.

• Transactional-based customers who had the best experiences spent 140% more compared to those who had the poorest experiences
• Subscription-based customers with the poorest experiences had only a 43% chance of being a member a year later
• Those who gave one of the top two experience scores had a 74% chance of remaining a customer
• Customers with the lowest experience score will likely only remain a customer for a little over a year.
• Customers with the highest score are likely to stay for another six years.

If you’re interested in upping your revenue, you’re interested in upping your game in the driving source of that revenue: your customer’s experience. We’ll be showing you how in this weekly serving of CXpresso Shots. Enjoy.

Source: Medallia Analysis, August 2014; Medallia in Forrester Wave Report