Customer experience drives loyalty and profits


Improving your customer experience can have dramatic results.

Research has proved that, if repeat customers rate you as poor (2 or less out of 5), – only 2% will spend more and 62% will spend less than the first time.

If your rating improves to 4 to 4.8 out of 5, 29% of repeat customers will spend more and only 21% will spend less. And, if your rating moves to excellent (5/5), they are 6x more likely to buy from you again.

Harvard Business School did some research to illustrate this:

They looked at 2 global businesses. One of these was a transaction-based business; the other, a relationship-based subscription business. Transactional businesses focus on return frequency and spend per visit. Subscription-oriented industries focus on retention, cross-sell, and upsell.

In the transactional business, customers with the best experiences spent 140% more than those with the worst experience. Not that shocking!:



The results for the subscription-based business were just as impressive. They found that a member with a poor experience has only a 43% chance of being a member a year later.  but a member who had a good experience has a 74% chance of remaining a member for at least another year. They used this to show 2 things:

  • a member who gives the lowest score is likely to only remain a member for a little over a year and
  • a member who gives the highest score is likely to remain a member for another six years, generating much more income for the business:


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