Investment In CX Will Have A Positive And Quantifiable Impact On Your Business
Almost every major industry analyst, from Gartner to Ovum to Forrester, now recognizes the need to focus on the customer experience (CX) as an important strategic activity. In most cases, C-level leaders now report that improving CX is their number one strategic priority.
But as a recent report in the Huffington Post suggests, sometimes talk is cheap. Executives may tell analysts what they think the analysts want to hear, then go away and focus on reducing cost and increasing profit instead of any CX-related activities.
What is important to remember is that senior executives are driven by measurable outcomes. If an action or project has a Return on Investment (ROI) and is clearly favorable for the business then the leaders will take an interest, but it is this focus on metrics that is important.
This is the case for CX, but it requires a focus on some key metrics. There are now many studies that describe how different types of business have seen an improvement in their results directly because of an investment in CX, but executives sometimes need to be convinced that there is a direct link between improving CX and a business outcome – such as an increase in revenue.
In a recent Huffington Post article, Esteban Kolsky, CEO of thinkJar, has listed 50 important metrics that help frame the quantitative value of investment in CX. In my opinion, some of the most compelling statistics mentioned are:
1. 70% of companies that deliver best in class customer experience use customer feedback – versus industry average of 50%, and 29% for laggards.
67% of service interactions are easily replaced with community interactions
< 1% of companies deploying (deployed) omni-channel
34% of companies have undertaken Customer Journey Mapping (CJM)
66% of consumers who switched brands did so because of poor service
85% of customer churn due to poor service was preventable.
75% of brands do not know what engagement means – but are measuring “it”
91% of unhappy customers who are non-complainers simply leave.
- Customer frustration leads to the following: 13% tell 15 or more people if they’re unhappy. Conversely, 72% of consumers will share a positive experience with 6 or more people.
- 86% of consumers are willing to pay more for an upgraded experience. Air travel and hospitality are examples where upselling better experiences can generate incremental revenue and bolster customer loyalty.
What Kolsky is highlighting is that investment in CX has a measurable impact on your business – and this impact can be quantified. His statistics may vary across different industries and business models, but the general trend his research presents is valid.
It might be an increase in revenue, a reduction in customer churn, an increase in customer satisfaction, an increase in customer advocacy, or an increase in revenue or profit. However you measure the impact of your CX investment, the outcome will be positive based on previous business case studies.
Our approach at Praxidia is similarly driven by metrics. We don’t just talk about CX as a good idea; we can demonstrate that your CX investment will have a quantifiable impact on your bottom line. We talk to thousands of customers around the world each year in an effort to measure opinion and attitude to corporate CX initiatives.
Let me know what you think about the metrics I mentioned here in this article by leaving a comment here, or to discuss these ideas in more detail please get in touch directly via my LinkedIn.