The customer experience is the sum of all experiences that a customer has with a supplier of goods and/or services over the duration of the relationship with that supplier. This can include awareness, discovery, attraction, interaction, purchase, use, cultivation, and advocacy. By improving the customer experience, businesses can drive value, reduce cost, and build a competitive advantage in the marketplace. The implications for print service providers of all types are significant. Customers are seeking partners that deliver solutions that go beyond simple variable data, personalized URLs, and customized landing pages. They will want providers that can help them actively engage customers and deliver a true customer experience.

Enterprises understand the impact of the customer experience on overall business results. Using rankings from Forrester’s Customer Experience Index, Watermark Consulting mapped the overall performance of firms deemed as leaders and laggards. Leaders outperformed the broader market, generating a total return that was 35 points higher than the S&P 500 Index. Laggards trailed far behind, posting a total return that was 45 points lower than that of the broader market. The rationale is simple—firms delivering a positive customer experience have better retention, less price sensitivity, and the benefits of word-of-mouth recommendations from customer advocates. They also have lower expenses thanks to reduced customer acquisition costs and fewer customer complaints. Those deemed as Laggards have opposite circumstances. Operating costs are higher based on complaints and rising customer service expenses. Customer attrition is high and they need to spend more on new customer acquisitions, especially if they are receiving negative word-of-mouth.

Customer Experience Leaders Outperform the Market