“Customer Experience” has been used and abused numerous times. Especially after Gartner declared it as the new battlefield for companies. According to its report, greater competition and growing consumer power have eroded traditional product- and service-based differentiation, forcing firms to seek new, more durable forms of competitive advantage. Taking a cue from it, the firms are trying to get that edge from battling it out in the customer experience field. One way by which they are doing this is by deploying sophisticated contact centers. But, before anything else, there needs to be a proper understanding of what customer experience (CX) is. Simply put, customer experience is how customers perceive your brand.
This might look simple, but can take companies years to reach that level. Even though there is a general consensus amongst the firms about the importance of CX, some are still skeptical. They have their doubts about its impact on the bottom line.
Revealing the Secrets of Customer Experience ROI
#Map Customer Journey
Sketch out the journey the customer takes while interacting with the organization. Identify the critical areas and accordingly be prepared. This will help the organization to not just pre-empt any service failure, but a shorter response time ensuring customer satisfaction and loyalty.
#Using Right CX Metrics
Making the strategy is not enough. One needs to measure the change. This can only be done with the understanding of organizational goals along with a thorough analysis of the target market. There are many metrics available to analyze CX but organizations have to identify and implement the ones best align with their goals. For instance, whether to focus on just the bottom line or other factors as well.
#Customer Lifetime Value (CLV)
CLV (Customer Lifetime Value) is a prediction of the total worth a business will derive from their entire relationship with a customer. It is assessed by projecting the customer’s present value into the future, using certain assumptions and calculations. CLV is the financial benefit that a firm derives as a result of customer loyalty.
Make the customer happy and they will always choose you. Not just that, they will ensure others opt for you as well. A satisfied customer is the most credible and best brand promoter. They have had first-hand experience with the product/service. If they like the customer service, they will endorse the brand. A customer referral is more valuable than probably all the money a company spends on their marketing.
#Customer Acquisition Cost
Attracting new customers can burn a hole in the firm’s pocket. It is always advisable to retain your customers. This cost much less. Thus, if the company manages to cover all the touchpoints throughout the customer journey, they will have a higher probability of satisfying the customer.
This cannot be emphasized enough. Employees are an organization’s first and probably the most important customers. The quality of the workforce is a reflection of a firm’s functioning. Organizations which acknowledge this go a long way. Employees are the face of the company. Organizations spend a lot on training the employees, nurturing them. So, the focus should be on reducing the attrition. Thus, other than training, empower the employees, respect them and reward them. When the employees are happy, they will make sure the customers are happy too.
The focus on customer service and experience is not really a new development. It was long overdue. But now that we have a better understanding of the world of CX and its importance, organizations are a lot better equipped to work towards a sustained profit-oriented growth.