Forrester Research, Inc. (NASDAQ:FORR) has released its 2016 Customer Experience Index (2016 CX Index). The research firm has found out in its latest survey that more brands are beginning to prioritize improvement in customer experience (CX) and this is helping them to drive revenue and improve bottom-line. This is happening at a time when consumers are also increasingly becoming more interested in companies that offer them faster, better and more connected experiences.

Forrester’s 2016 CX Index shows that 71% of businesses are giving CX improvement a top priority. Compared with the 2015 index, Forrester established that overall CX quality improved in 2016. This compared with a decline in 2015.

Ranking of 300 brands

For its 2016 CX Index, Forrester ranked more than 300 U.S. brands in 18 industries based on the views of 122,500 adult consumers surveyed online. The purpose of the survey is to evaluate how CX impacts brand loyalty. Out of the study, the firm noted that digital brands enjoy a strong CX advantage.

However, companies failing to provide quality CX end up with a large pool of customers who are not satisfied and who in turn develop strong negative emotions against those brands. Poor CX quality has also been blamed for lack of brand loyalty.

Impact of CX on revenue

Forrester says that it is not guaranteed that good CX will always lead to brand loyalty. But it happens that brands that make their customers feel appreciated and valued end up creating strong customer loyalty in the brand. It also turns out that CX has a strong effect on revenue.

For instance, Forrester reported that an improvement of one point in CX index can boost revenue by $65 million for a company in the premium hotel industry. That means that CX could have a direct and measurable impact on the bottom-line of a company, though this is only correlative and not necessarily causative.

USAA topped Forrester Research, Inc’s 2016 CX index. Other companies that made the top 5 list are Ally Bank, Barnes & Noble, Inc. (NYSE:BKS), Edward Jones and Etsy Inc (NASDAQ:ETSY). Brands such as Huntington National Bank, Navy Federal Credit Union and Newegg made the top 10 list.