Experience Debt


Experience debt can be defined as the gap between a customer’s expectations and the actual experience they receive from a product or service. When a company compromises on usability and pleasure, it incurs a set of costs that affect both the customer and the business. These costs can manifest in the form of decreased customer loyalty, lower customer lifetime value (CLV), and a reduced potential for word-of-mouth referrals and recommendations.

In a world where customers rely increasingly on ratings and reviews to make purchasing decisions, experience debt can be particularly damaging to a company’s reputation and bottom line. If customers have a negative experience with a product or service, they are more likely to leave negative reviews and recommendations, which can deter potential customers from making a purchase. Additionally, if customers have a negative experience, they are less likely to become repeat customers or recommend the product or service to others, which can lead to a decrease in customer loyalty and CLV.



The Agile Brand Guide to Marketing Operations (2023) by Greg Kihlström

The Agile Brand Guide to Marketing Operations is now available in print, digital, and audio formats.