If you’re contemplating whether or not you should upgrade your CX strategy, perhaps you should ask yourself, how much will you lose if you don’t? While new acquisition and sales strategies seem to be worth your investment, ignoring current customers and CX flaws will cost you far more in the end.
Studies show that over 67% of customers credit “bad customer experience” as their primary reason for churn. Add to that the face that highly competitive markets are flooded with choice and the end result is customers who are less likely to settle, and more likely to expect superior treatment.
Whether you’re a small business owner balancing precious resources, or a manager trying to convince the CEO it’s time for an update, you’re probably facing the same challenge: how can investing in improvement be monetized to prove it’s worth it?
The good news is, with tools available today, you can easily calculate the ROI of your customer experience management (CEM) before you make any changes. CEM predictions will help you:
- Translate customer satisfaction into growth drivers
- Forecast customer acquisition, sales revenue, and retention
- Guarantee a high return on your investment
- Undergo scenario planning
- Determine impacts of NPS scores on revenue growth
Here’s what goes into the equation:
Customer stats: It’s critical to understand the historical data around your customers to tabulate hard numbers. How many customers can you claim? Where are they coming from? How loyal are they?
Purchasing behavior: To be able to predict and adapt to consumer behavior, you have to understand the past. How often are customers buying? Are there more one-time visitors than frequent users? How likely will they be to buy again?
Levels of satisfaction: Rising numbers of customers doesn’t necessarily guarantee happy customers. Gathering shallow date will give you little direction on how you can increase retention rates. To create a benchmark and drive ROI, you need to understand how happy your customers are with the current level of services, and how likely they are to advocate rather than damage your brand with their sentiment.
By looking at these factors already existing in your organization, various CEM projects and initiatives can be incorporated into different ‘what-if’ scenarios to help focus budgetary and resource options in the most profitable way.
While there are a multitude of indirect benefits to investing in customer experience (lowered marketing costs, improved customer mix, increased brand perception and identify, to name a few) our ROI calculations concentrate primarily on those benefits that are truly measurable.
By giving you a realistic preview of potential reward before investing, we take away the risk and give you control over your CX priorities. Get in touch today to get started.
- Zamil Travel Signs with Gulf CX for Online Travel Launch of Minaalsafar posted on February 19, 2017
- Why frontline employees are the most important factor in your CX equation posted on April 4, 2017
- Touchpoint Mastery posted on February 23, 2017