It Really Does Pay to Invest In Customer Experience

airline customer experience

We’ve long been advocates of the value of investing in customer experience. With more experience in b2b CX research than any other research company, we’ve seen first-hand the greater financial returns and long-term customer loyalty that results from customer experience investments.

Don’t just take our word for it though. A recent study of customer experience ROI in the airline industry, by Watermark Consulting, found that it really does pay to invest in customer experience. The study looked at the 6-year stock performance of North American airlines, broken down by their levels of customer-centricity.

The customer experience leaders were found to have significantly outperformed the Dow Jones U.S Airlines Market Index, generating a total return of 295% compared to the 225.2% generated by the Index. On the other hand, the customer experience laggards generated a total return of 145.8%, 79 points lower than the industry as a whole.

The results are clear. Over the 6-year period of the study, the customer experience leaders enjoyed a total return which was more than double that of the laggards. The study puts this down to the higher revenues and profitability that comes with better retention, less price sensitivity, greater share of wallet, positive word-of-mouth and reduced acquisition costs.

These benefits aren’t exclusive to just the airline industry either. Research by McKinsey has shown that improving a customer experience from average to exceptional (wowing the customer in some way) can result in an increase of 30 to 50 percent in KPIs such as likelihood to renew or purchase again.

While it can be a long and sometimes difficult road to becoming a truly customer-centric company, where the customer experience is ingrained in the fabric of the company, it is ultimately a rewarding journey. You’ll be far better off at the end than you were at the beginning. Trust us.

Show me:
  • Filter by Industries

  • Filter by People

  • Filter by Research Type