Forrester estimates that the total annual impact of customer experience is over $6.8 billion in the US alone, thanks to customer retention, unlocking a larger share of wallet, and word-of-mouth referrals. How much of that $6.8 billion are YOU bringing to your company's bottom line? Check out this deck and the link below for a crash course on the financial impact of good customer experiences, and how you can use the science of experience economics to boost your bottom line via painpoint reduction, closing the loop, and mobilizing your organization. Like what you saw? Find out more at: http://blog.medallia.com/customer-experience/e-book-post/

1. 3 Ways To
INCREASE
REVENUE
with
Customer Experience
Improvement
As presented by Medallia
Copyright © 2014. Medallia Inc. 1

2. Did you know? Forrester estimates that the total annual
impact of customer experience across industries is over
$6.8 billion
…and that’s just in the U.S. alone.
Source: Forrester, The Business of Impact Of Customer Experience
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3. How? Forrester links this massive revenue opportunity
to the the ability of great customer experiences to:
• drive customer retention
• unlock a larger share of wallet, and
• drive word-of-mouth referrals
Copyright © 2014. Medallia Inc. 3

4. One way to start thinking about linking customer experiences to
revenue is something we like to call…
EXPEREINCE ECONOMICS
ex.pe.ri.ence ec.o.nom.ics (noun)
The study of the linkage between customer
experience and its financial impact.
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5. Cute concept, but how can you calculate the link between customer
experience and revenue?
How much of that $6.8 billion opportunity can you bring to your
company’s bottom line?
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6. Here are three key ways to drive revenue through Customer Experience:
1. Painpoint Reduction
2. Closing the Loop
3. Mobilized Organization
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7. Painpoint
Anywhere in a customer’s journey that
consistently causes friction and frustration.
1 1
Painpoint
Reduction
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8. 1. Customer Satisfaction And Churn
Painpoints can have a broad impact on total customer satisfaction,
ultimately creating more churn, and loss of revenue.
2. Cost Of Support
Customers in Pain are more expensive; they need more support.
3. Cost Of Attracting New Business
It’s more expensive to attract new business than retain old business.
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9. Closing the loop in 2013 gave them…
• $2 BILLION increase in transaction
volume thanks to painpoint reduction
• +8 NPS increase in customer service
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10. 2 2
Closing
the Loop
Closing the loop
Anything you can do to engage a customer
around the feedback they give you – both
positive and negative. Copyright © 2014. Medallia Inc. 10

11. 1. Customer Recovery
Customers who have experienced problems often open the loop. Closing
it is a great way to rescue them.
2. The Lifetime Value of Customers
Closing the loop with happy customers can make them even more
valuable, both in terms of their spend and the referrals they bring.
3. Employee Engagement and Empowerment
Allowing employees to close the loop puts their roles in the context of the
customer and creates empathy.
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12. Their “one version of truth initiative” to
close the loop with their customers
significantly reduced churn through
improving their Net Promoter Score…
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13. 3 3
Mobilized
Organization
Mobilized Organization
An organization whose employees are
engaged with the company’s mission, with
the customers, and their feedback, Copyright © 2014. Medallia Inc. 13

14. Want to find out how Choice Hotels
International mobilized their organization
to gain an additional $18 million in
incremental revenue?
Download the ebook
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