Better the Customer Experience, Higher the ROI
Every business needs growth and success in one way or another for their company. They want to generate more revenues and sales through their services. Eventually, every business wants to get more revenue by providing more services.
However, many feel that the way to determine good revenue for the company is going through the path of providing a good customer experience.
They agree that customer service will be the main catalyst for the competitiveness of their business in the future. When it comes to the actual management of customer service, though, things get hard. Listening to the user is not too difficult. Businesses gain real-time input if they just start listening to their customers. New technology, such as machine learning, makes insightful research possible.
Purchase text analytics can be a useful tool for several companies that receive large customer feedback to understand data and turn the noisy voice data from their customers into organized information. It is important to know what your customers think and to understand the main fields of enhancement.
So, does that mean every company has a good customer experience?
Saying straight away “NO” would be wrong, many companies do give a good try to understand and implement a good customer experience, but it is not that EASY.
Sometimes there is a lack of control of the business — if there is a challenge because it falls between organizational processes, it takes extra effort to enhance the consumer experience. In certain ways, though, corporate tunnels are not the only reason why customer input is not used.
The Role of Money
To improve the customer experience one needs resources, the first and important one is MONEY. It is not easy to decide whether or not to use the money to enhance customer services if the financial benefits are not well known. Decisions related to customer service are no different from other business decisions: to explain those decisions you need a positive business case. You need resources and a good team to handle all your management.
The question sometimes is pretty clear that if you have a good customer experience, then what is the rise in our customer satisfaction? Is this improving our income or profit? Will this affect our market share positively?
The company owner understands the numerical measurement well, the priorities are well set; Growth and Profit. Customer Experience is a different game, a little repetitive, not just because it’s about what you do, but also how people view it. It’s affected by emotions.
Therefore, the mantra is very clear, to earn money, you got to spend some!
The Better the Customer Experience, the higher the ROI
Various studies have shown that customer engagement affects sales growth. The “Customer Experience Drives Revenue Group” study from Forrester found that leading customer experience created an average compound turnover growth of 17% over five years. During the same time, the CX visionaries reported only a 3% rise.
Customers today spent more and more time online they dislike/unfollow the brands that waste time with unattractive and unwanted content. With continuous and rapid shifts in customer behavior, the traditional marketing approaches are now outdated and obsolete.
Amazon was one of the first brands to use web customization and people were amazed to hear about its development. Amazon’s excellent customer service was a major factor in its growth. 60% of customers in a research study said they believe that Amazon understands their tastes and needs much better.
Therefore, customer experience and retention are directly related which plays a very important role in increased ROI.
Gaining loyalty is the TASK
Customers Loyalty is precious!
The increase in sales is mainly driven by the effect of improving customer satisfaction of the positive customer service. Customer experience figures show that finding a new customer can be five times more costly than keeping one present. Providing seamlessly customized experience through multiple contact media and touchpoints is known to be a key driver of customer loyalty.
It will gradually boost your competitiveness if you continue to invest in enhancing customer service and win loyal customers. This should increase your market share since all other variables remain consistent. However, the relationship is more complex if we consider how customer experience and market share correlate.
The main objective for a good customer experience is about the increase in ROI but also to satisfy the customers. All your products and services are for the customers, and if they are not happy about it, just making money would not be of any motive.
Feedbacks and reviews all play a good role in ensuring that you care about your customers and listens to them. But just listening is not enough, to act on it is what will make the difference.
It is important to quantitatively evaluate customer experience to understand the advantages of better customer experience such as retention, sales growth, and customer satisfaction. This means you have the requisite budget to develop a good program, to make the investments in CX. During this, you can measure the ROI and track it over a longer period using comprehensive quantitative measures.
Therefore, Customer experience and ROI have a relationship that falls and follows the same.