Most executives we talk to readily grasp the journey concept, but they wonder whether perfecting journeys pays off in hard dollars. Our annual cross-industry customer experience surveys (including pay TV, retail banking, and auto insurance firms, to name a few) show that it does.
Companies that excel in delivering journeys tend to win in the market. In two industries we’ve studied, insurance and pay TV, better performance on journeys corresponds to faster revenue growth: In measurements of customer satisfaction with the firms’ most important journeys, performing one point better than peer companies on a 10-point scale corresponds to at least a two-percentage-point outperformance on revenue growth rate. (See the exhibit “Good Journeys Fuel Growth.”) Moreover, the companies that excel in journeys have a more distinct competitive advantage than those that excel in touchpoints: In one of the industries we surveyed, the gap between the top- and bottomquartile companies on journey performance was 50% wider than the gap between top- and bottom-quartile companies on touchpoint performance. Put simply, most companies perform fairly well on touchpoints, but performance on journeys can set a company apart.
Our research also shows that performance on journeys is more predictive of business outcomes than performance on touchpoints is. Indeed, across industries performance on journeys is 30% to 40% more strongly correlated with customer satisfaction than performance on touchpoints is – and 20% to 30% more strongly correlated with business outcomes, such as high revenue, repeat purchase, low customer churn, and positive word of mouth.