We examined the connection between customer experience and loyalty by tapping into our survey of 10,000 U.S. consumers to analyze the relationship between Temkin Experience Ratings (TxR) and future purchase intentions.

To determine future purchase intentions, we asked consumer how likely they were to purchase more from the company in the future. We calculated the percentage of each company’s customers who selected “6,” or “7” on a scale from “1” (not at all likely) to “7” (extremely likely).

In the chart below, we normalize the data for 329 across 20 industries by subtracting each company’s scores from the average for their industries.

As you can see, CX is highly correlated to future purchases (R= 0.75).

In the chart below, we segmented consumers into five groups based on the TxR scores they gave companies (an average of success, effort, and emotion ratings). We then averaged the future purchase intentions of those groups across the 20 industries.

As you can see, consumers who have had a very good CX are 54 %-points more likely to buy from a company than consumers who have had a very poor CX.

The bottom line: If you want loyal customers, improve your customer experience

This blog post was originally published by Temkin Group prior to its acquisition by Qualtrics in October 2018.