A great customer experience generates business value
It’s more than hype. Customer experience is very important, and how you manage it will be decisive in surviving the digital wave of empowered customers. All research points in the same direction.
There are benefits to be gained by offering a great experience to your customers:
- Increased revenue
- Decreased costs in terms of customer service and retention
- A more positive brand image
These are not “soft” metrics. As we’ll see, a great customer experience translates into hard dollars.
Before we go any further, we need to address a common misconception; the one that associates great customer experience only with costly levels of customer care. As mentioned above, great customer experience can result in increased revenue and decreased cost at the same time.
This misconception has been around mainly because organizations have not yet realized the cost associated with a poor, or worse, bad customer experience. Have you?
It is proven, as Forrester states, that “a better customer experience (CX) correlates with higher revenue growth — most dramatically in industries with customers who have many equally convenient and strongly differentiated choices, such as online retailers and investment firms.”
A better overall customer experience creates satisfied customers with higher lifetime value who:
- are loyal and thus a source of a more stable and predictable revenue
- drive higher revenue as they are more likely to purchase more
- will engage in positive word of mouth
- are more open to cross-sell and up-sell opportunities
- cost less in marketing, care and any expenses related to customer retention
- are more likely to forgive a mistake
A poor experience, on the other hand, will send your customers packing, as two-thirds (66%) will not repurchase according to Accenture. And they will most probably be very vocal about it. This results in:
- lost revenue from customers leaving or buying less
- negative word of mouth
- an increase in customer service cost/time/effort to resolve issues
As the saying goes, a happy customer tells a few people, while an unhappy customer tells everyone. According to a McKinsey & Company study, a single negative experience has a four to five times greater relative impact than a positive one. Organizations have to tackle these negative experiences effectively, but more importantly, they should try to avoid creating them in the first place. The time, money and effort put into mediating the effects of a bad experience could be directed to more profit-enhancing activities, like offering a great experience.
Because a great customer experience generates business value.
And customers are willing to pay a premium for it.
Last, but definitely not least, great customer experience means that you get to keep your customers, something far more cost-effective than getting new ones.
Are you ready to offer a great customer experience? Objectif Lune can help you achieve your goal by easily improving your customer communications!