Here’s an interesting infographic I found. This leads to increased referrals too.
Well, this is the big question that often sends CX efforts to their grave. I could write paragraphs, but am limited in this space. I will say that I have an ROI model that helps CX executives make a sustainable case for continued focus and investment. I won’t give away the secret sauce, just be assured there is a tangible way to demonstrate, in dollar terms, the value of CX investments. I am happy to talk about this offline or at the Summit.
Steve – great. Look forward to your ROI. We believe in Ultra Performance Revenue = To truly Elevate Sales and create Sales Transformation in a business, means having complete alignment and buy-in from all 3 levels of an organization: The C-Suite, the mid level Sales Managers, and the frontline Salespeople.
Each area of the business is responsible for creating and executing a different part of the overall sales strategy. Obviously it is all about the CX . Thanks
Hi Steve, as customer experience implies either pre-sales and post-sales touch points make sure to engage all relevant departments. Sales, Marketing and Customer Service need to be aligned to pursue not only their own goals but also a common business goal which must be shared and agreed. Therefore internal communication is paramount if you want to deliver a seamless, consistent experience regardless the ‘customer momentum’ (quote > purchase > support > claim > complaint).
To improve this, it’s vital to understand the customer’s desired outcomes in wanting to buy your products/services. Providing a great experience at all points in the journey is important but your product/service has to meet those spoken/unspoken needs as well. e.g. a mortgage provider, from the customer’s viewpoint, helps achieve their outcome of a new home. Focusing on this rather than just the product and/or experience means more revenue opportunities can be identified.
There are countless great articles that show irrefutable evidence on what World-Class Customer Service companies have against the rest of their industries. https://thedijuliusgroup.com/correlation-customer-satisfaction-financial-performance/
Consider a different question. What kind of profits will your company have if you don’t deliver an “optimized” customer experience? How long before your customers realize the competition offers a better experience. The right CX and service makes it easier for a customer to decide to do biz with you. And a benefit to creating a customer-focused organization is that many times the company is also an employee-focused organization. That leads to lower turnover, saving money in hiring and training.
I look at this two ways. One way that CX increase profits is by retention and residual referrals from existing customers that create new revenue. The second way is that is always more expensive to acquire new customers than it is to retain them. Reducing the leakage of existing customers through service recovery, and other methods is ultimately going to increase revenues and profitability. John Goodman has a great model in Customer Experience 3.0 High Profit Strategies et al.
In addition to Shep’s answer:
“If you think it’s expensive to implement a good customer Experience (implementing VoC), wait until you quantify the total costs of a bad customer service.”
To predict the ROI of offering a better customer service is hard: a better customer service will improve sales, reduce churn, improve marketing efforts, reduce employee attrition and sick leave, improve products and services, reduce the number of customer contacts and improve processes and procedures.
I think Shep has nailed it!
What does optimize really mean? Is that another word for efficiency? Yuk! I think we have to push the envelope all the time. If I am optimized, I am static, and not looking to improve. As Yogi Berra said, “Don’t look back, Something might be gaining on you” In this case, it is your competitors. Push the envelope, constantly try and improve the CX. This is not a static world anymore, if it ever was. Customer needs are changing, your CX has to change as well.
Excellent responses! Here’s my spin on it: Long-term profitability is the happy side-effect of maintaining a culture of continuous customer service improvements –where the employee-experience draws top talent, and the customer-experience earns repeat and referral sales. Think of optimizing as an ongoing process of continuous improvement rather than a once-and-done fix.
We want our investments in CX to be great for the customer and our bottom line. There are so many ways CX is good for everyone. I’m drawn to a Gartner quote to answer this one:
“Better experience costs less to compensate, costs less to serve, costs less to retain, is less price sensitive, and is more likely to promote or recommend.”
If you want a list of the financial benefits of great CX see John DiJulius’ article. Our approach is to start measuring everything at the customer level.
I’m smiling from ear to ear! Shep and Marco are making me smile – and so what if you DON”T? In my work with CEO’s and top execs I often start my talk with a blank sheet of paper and the words Customer Loyalty at the top. I ask the question – what happens when you have more of this? I’m always astounded at the responses which start with what you would expect – more referrals. And then I ask, What else? I’m relentless until the entire page is filled and I’m writing up the side.
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