The hidden fact of why Customer Experience matters
Improving the Customer Experience from good to great increases average customer lifetime value with 54%
A massive financial benefit from providing superior customer experience every single time, is the fact that delighted customers are much more likely to remain active paying customers. The average customer lifetime value (CLV) of an automotive customer increases dramatically with the customer experience during the sale and after sales touch points.
The figure above shows the financial return on Customer Experience across different levels of Customer Experience. At a customer experience index of 75, the Brilliant Basic level, the average CLV is EUR 1,105. Hence, 1000 new customers implies a total CLV of EUR 1.1M if the Customer Experience is at the Brilliant Basic level.
However, if the customer experience index is increased to 95, the Top Rating Behavior level, the average CLV is EUR 1,702 — an increase of 54% compared to the Brilliant Basic level!
Therefore, the financial return on an improvement from Brilliant Basic to Top Rating Customer Experience must and should not be neglected.