Why Investing in Customer Experience is Good Business

Improving Customer Experience (CX) is a team effort. It takes the engagement at all levels of business to improve it, from the board, CEO, partners, managers all the way through to the front line and support staff. Because of this, you need to get everyone onboard, and that can be a hard sell. Then there is the actual financial investment of it too. It can be an uphill battle.

Luckily, there is a lot of momentum to support investing in improving the Customer Experience. An excellent resource to use when pitching is Outside In: The Power of Putting Customers at the Center of Your Business. It offers many well laid out examples of successful case-studies, and throughout the book, the authors offer great advice on creating a business case for you to use.

Below are some ideas that should be used when you are pitching or considering investing in a CX platform.

Start with Cost Avoidance
Installing listening systems to collect customer feedback will almost always enable your company to reduce support costs. A positive fallout effect is collecting good research about the customer experience.

Assign a Value to Customer Loyalty
Many recent CX research articles clearly show a correlation between customer experience and loyalty. Loyalty is an increasingly important factor in B2B as business customers become service consumers and switching costs ceases to be a barrier. All annuity businesses thrive or die on loyalty.

Assess the Extra Benefits of Great Customer Experiences
While initial customer experience investments will focus on identifying and repairing problems, three other types of revenue drivers have been tied to improving customer experience:

  • incremental purchases from current or returning customers
  • revenue retained as a result of lower number of lost customers
  • new sales driven by customer advocacy because of great customer experience

CX might be the new acronym in your vocabulary these days, and if it’s not, than it soon should be.

For more information on what we can do for you, contact us – we can help.