To think in terms of customer experience is to think in terms of company profitability. Customer experience is the key to company growth. It impacts new customer growth and average revenue per customer. Customer experience initiatives should focus on improving customer loyalty, retention and satisfaction.
The ultimate goal of customer experience is to build valuable customer relationships. The goal is for them to stay longer, recommend you and expand your business relationship. Customer centricity means integrating your customer experience program into your organization. It also means including the customer experience in your CRM system. The goal is to get an overall picture of the quality of your customer relationships.
Positive Impacts of Customer Experience
Customer experience positively impacts metrics linked to profitability in the company, such as:
a.- Impact on Customer Loyalty.
A negative customer experience reduces customer loyalty. Estimating an average of 20% in customer loss due to this negative experience. On the other hand, if the customer is seduced, loyalty can increase by 30%. The expert Shep Hyken deepened in this matter, you can read it in THIS LINK.
b.- Price impact.
Price sensitivity doubles when a problem occurs. It doubles again if these problems occur again.
c.- Impact on Word of Mouth (WOM).
A negative customer experience causes 2 to 4 times more negative WOM. Also 92% of customers trust recommendations more than any other form of advertising.
d.- Growth and customer experience.
The detractors are customers who feel mistreated by the company, reducing their purchases.
These detractors do not appear on the balance sheet, but their cost is much higher due to:
- They represent higher service costs.
- Demoralize the employees in contact with them.
- They worsen the company’s reputation, customer and employee recruitment.
Bad profits are due to detractors who strangle the company’s growth. Loyalty is the key to profitable growth. Without a systematic feedback collection mechanism, it is impossible to distinguish it. The consulting firm Bain showed that a 5% increase in customer retention leads to at least 25% growth in profits.
What can the company do to improve the customer experience?
There is missing information about individual and aggregated customers that is moving through piles of data without being used by the company for decision making. Treating customers in aggregate is what causes customers to lose trust in business. Empowering employees to act personally with customers is a complicated task. Technology and a better customer experience can help reverse the situation, always with a focus on improving the company’s profitability.
Managers can apply analytical techniques to understand the causes and consequences of customer loyalty, detecting systematic changes that affect large customer segments.
The key is that the right people in the enterprise can get the right data at the right time to help take action in front of the customer. Customer experience management platforms make this process much more practical, facilitating a longitudinal view of individual customers (end to end) by obtaining this information from key customer segments.
The customer experience landscape is changing and customers are driving this change. They expect more from their customer interactions.
Our vision of the customer experience of the future is to deliver value to customers to achieve greater loyalty, retention, life time value and average value.
This is where technology plays an important role. Future trends imply that data, saas, mobile, personalization, Apis , Omnichannel will shape the future of Cex.
Profitability in the company. The customer experience and the marketing department.
If we think about the marketing department, and therefore about profitability in the company. The main tasks of the person who manages the customer experience will be the following:
1. Manage customers as assets.
Create a simple metric which is the growth or decline of customers.
The next thing is to know what is it due to? Why do your customers stay or leave you, buy more or less, or actively use your products or services more or less?
Therefore it becomes critical to measure the customer experience.
2. Align operations around the experience, Review customer relationship process mapping.
Use the touchpoint map and focus operations on priorities. The touchpoint map provides a rigor for understanding and focusing priorities within the lives of customers.
Identify moments of truth. Most of the time when a customer engages with the company they do so in such a way that their experience with us is irrelevant to them, nothing more or less happens than what was supposed to happen and therefore they will hardly remember the experience they had with us. This is what is often referred to as hygienic factors, in these cases the most we can aspire to is not to lose him.
However, there are special moments sometimes caused by claims, accidents or accidents, or because we exceed expectations. All these situations generate emotions in the client. They are important because when they appear is when we remember what happened. This gives us the importance of identifying the moments that we must pay special attention to so that the experience we generate is positive. And secondly to identify how in those moments parts of the transaction we can exceed the customer’s expectations.
In the first case, it is a matter of looking for those moments of truth (claims, claims handling…) and then articulating mechanisms and processes that guarantee that in those moments the experience delivered by our company is differential.
In the second place of exceeding expectations, since not all clients respond in the same way, we must work by dividing them into groups with similar behaviors.
3.- Build a customer listening path, analyze the current customer experience and collect the unified customer voice.
Starting from the construction of a customer listening map at a simple level on a maximum page, in such a way that anyone can understand it. Seeks inputs and understands the critical points around the CJM (Customer Journey Map), to result in the customer listening path.
Uses multiple sources of information. Tell the story of customers’ lives with your product. Create a unique decision and focus system. All this is what is known as the customer listening path.
4.- Proactive user experience management.
Develop the ability to predict performance, rebuilding and innovating at touch points.
And remember that if you want to know more, we are at your disposal RIGHT HERE.