Customer Experience Truth #5 – The Law Of Diminishing Returns Applies To Some, But Not All, Customer Experience Initiatives

We’ve all seen this chart, right?

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The Law of Diminishing Returns as applied to Customer Experience means this:

At some point, the extra effort* to improve this aspect of the experience past a certain point will not yield the same return on investment.

* Effort in this case is considered money, people resources, and time taken away from doing other projects that will yield a higher return.

So where can you continue to enhance the experience and not see diminishing returns? Every company will be a little different, but below are some thought starters that I think everyone can agree on:


This may not seem as obvious as many other aspects of your Customer Experience implementation, but it’s number one in my book. Having the right kind of data about your customers can be extremely powerful, and will enable you to provide as personalized of an experience as your customers want (as opposed to having to stop along the continuum of customization due to lack of data points).

With the right kind of data, you can design user experiences that allow your customers
to self-select how and what they want to personalize about your products.

An continued investment in your ability to collect information about your customers in a way that is not invasive, pushy, or questions privacy will give you the proper foundation for building exceptional experiences everywhere else.


Investing in consistency seems odd, doesn’t it? Usually you want things to get better, not remain the same. However, while you’re spending all this time making things better for your customer, making sure you are investing the time in your company’s ability to deliver that improved experience consistently is an investment always worth making. If one employee, pamphlet, web page, or email has an inconsistent message, you’ve lost. Here are some places where you may find gaps:

  • New employee training
  • Product or service new releases
  • Tone and voice for employees when representing your company
  • Agency relationships representing your company


Continued investment in ensuring your employees are happy and motivated will go a long way when it comes to your company’s ability to deliver on your experience promise. Some relatively inexpensive but impactful opportunities for investment here might be:

  • Non-traditional lifestyle benefits, like an on-site monthly massage therapist, dedicated quiet/nap room, commuter support, gym subsidy, volunteer time, or bike lockers in the parking lot.
  • Time during your work week to focus on personal projects
  • Equity awards for star employees
  • Tools to do the job – Ensuring your employees have the right tools to deliver the right experience is critical to a happy employee.

Next, we’ll discuss Customer Experience Truth #6 – Return On Customer Experience Initiatives Are Often Difficult To Measure, But Not Impossible
This post is 6 of 16 in a Series on CXP Fundamentals. Read more about CXP Bootcamp here.

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