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If you want to be a leader in your sector, manage your customers’ experience to make the most of the opportunities that arise in your business.
Case study of a company that manages the experience.
Customers of a well-known company were promised cheaper offers by competitors. Attempts to use new offers to build customer loyalty backfired and created resentment that caused many to drop out.
The company tried to counter such offers with its own eye-catching offers for new customers, but excluded existing customers, which exacerbated dissatisfaction, causing long-time customers to drop out.
Management reacted by making all new customer offers available to existing customers. In parallel, the company reinvented its approach to service.
The results were spectacular:
- Customer satisfaction ratings went from the worst to the top in the industry.
- Customer churn was reduced by 75%.
- In three years, the company’s revenue nearly doubled, tripling that of its main competitors.
Manage the experience in your business.
We cannot ignore the strong correlation between companies’ CX scores and revenue growth.
In the United States, McKinsey’s analysis shows in its article Experience-led growth: A new way to create value that “CX-leading companies achieved more than twice as much revenue growth as “CX laggards” between 2016 and 2021. CX leaders’ revenues also recovered from the COVID-19 pandemic more quickly than those of other companies.
The company that manages the experience of its business is much more likely to achieve:
- Know its customers personally.
- Have a compelling growth story that they tell their employees and shareholders.
- Use predictive analytics to send the right messages to the right customers at the right time.
A clear focus on long-term growth makes them outliers, as most companies optimize for short-term profits and leave experience management behind.
Reason why it’s not profitable growth?
A common factor in companies that fail to achieve sustainable growth is that they focus too much on short-term acquisition metrics and do not invest enough in customer retention, thus falling into the “acquisition trap.”
CX leaders, according to consulting firm McKinsey, on the other hand, are masters at the art of “nurturing” growth from existing customers, making it enjoyable to use more and more of the company’s products and services over time.
This consulting firm points out that experience-based growth strategies-those that increase customer satisfaction by at least 20%-can yield a number of important economic benefits. Specifically:
- They can increase cross-sell rates by 15% to 25%.
- Boost companies’ share of wallet by 5% to 10%.
- Increase cross-sell rates
- Improve customer satisfaction and engagement by 20% to 30%.
With the help of software like Allswers, achieving profitable and sustainable growth becomes easier as it is a tool that allows you to know at all times what the customer’s situation is and to avoid leakage. Access our free trial to check its effectiveness.
