Boosting customer value correlates with higher revenues

Customer value is the holy grail of Marketing.  Gartner's recent report, CMO Insight: How to Justify the Business Value of Customer Experience Investments notes that most companies haven't cracked the code on this.  Only 29% of companies cite were able to "demonstrate a return on customer experience investments in dollar terms."  This points to either an inability to quantify the impact of customer experience, or a total mis-prioritization all together.

Impact of customer experience on customer value


Change in Customer Lifetime Value






Total Customers + New Customers — Lost Customers




Cost Savings




Business Value for Customer Experience Investments

Gartner's findings demonstrate that ...

  • Customers are willing to pay more for better experience.
  • Unhappy customers cost companies more
  • High value customers are worth investment.  
  • High value moments have a high return.  
  • Differentiating on customer value produces a higher return.

customer value

This report validates the importance of two factors -- investing in (1) Sales & Marketing performance analytics, and (2) experience design.  The potential payoff for engaging in this is increased revenue, and decreased cost.

Sales & Marketing Performance Analytics -- Historically, Marketing has struggled to present a strong case for Return on Investment.  Digital Marketing, and the general move to more advanced Marketing approaches, is changing that reality.  It's now significantly easier to quantify and qualify the impact Marketing is having on the business.  By mapping the journey of a buyer through all stages of the Sales cycle, it's possible to measure what "experiential" strategies and tactics work, and which don't.  But it's also easier for even progressive Marketing departments to get lost in the sheer deluge of Sales and Marketing data.  A tight alignment of all Marketing data to a Lead to Revenue approach focuses the business on a one goal -- revenue.

Experience Design -- If clients are willing to pay more for better experience, we had better know what defines "better experience."  Implied in defining the customer value proposition is definitively knowing "who" is the customer."  As a first step, Persona analysis can help shape the organization's understanding of the buyer and begin the process of profile what s/he needs.  The output should not be the result of a combined effort between Marketing, Sales, and Product / Service Management.  Combining analytical insights into who your high value clients are, you can then pinpoint what a high value experience is to them, and align the organization on how to deliver it effectively.  

The result is a customer value system capable of driving revenue.


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