Customer Experience Elasticity describes the effect on profitability in response to a change in Customer Experience
ABOUT CX ELASTICITY
This website is dedicated to the concept of Customer Experience (CX) Elasticity. Customer Experience Elasticity is the degree of responsiveness of profitability in relation to a change in Customer Experience.
The concept of Elasticity is well-known concept in Economics. The question is if we can apply the same principle in Customer Experience Management? In my view the answer is yes.
Different scholars and independent research firms has found evidence of the positive relation between Customer Experience and Economic returns, but there is no research about the Elasticity between the two. The goal of my research is to find answers between the two and how to measure the responsiveness of profitability to a CX change (which I introduced as the modulus of Customer Experience Elasticity)
MEASURE THE RELATION BETWEEN CX AND PROFITABILITY
"If Customer Experiences, delivered to customers across the different direct and indirect interactions improves, we would expect that profitability will increase. Customer Experience Elasticity measures this relation between CX and profitability"
THE LAW OF DIMINISHING RETURNS FOR CX ELASTICITY
"Does the law of diminishing returns will take effect as it does in Economics? When the investment in Customer Experience increases, can profitability from that investment continuous increase if other variables remain at a constant"
IMPACT OF CX ON THE MAGNITUDE OF PROFITABLE GROWTH
"Is the magnitude of profitability of the same order under the normal range of Customer Experience and
what impacts the magnitude, slope and steepness of the CX Elasticity curve"
I introduced the contept of Customer Experience Elasticity lately. I will continue researching this topic and soon you will hear more about my progress and direction.
If you would like to know more, get in touch with Patrick Burggraaf or reach out to me via LinkedIN (see icon bottom of the page)
This website is dedicated to the concept of Customer Experience Elasticity.
Reach out to me via LinkedIN or via a dedicated e-mail address for this topic
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