In “the age of the customer”, Customer Experience (CX) is an important notion and pillar that is to be essentially adopted and fulfilled by services providers. Organisations are requested not to only execute CX within its operating model, but to also sustain this implementation and to move up across the quality curve. Despite the market(s) mandating CX adoption, this doesn’t deprive organisation the CX magical yields.
Customer Experience herein functions as a Jackpot for the organisation that hits many birds with one stone. The below are key fundamental benefits that are to be harvested:
The most important aspect for all is…REVENUES!
Though Customer Experience has been always perceived by commercial and management teams as of a limited impact on revenue figures. There is an important considerable argument showing that Customer Experience in many ways can achieve a strong boost to revenues. Reducing dissatisfaction and thus churn is one source of increasing customer lifetime value (CLTV) whether the customers’ monthly revenue or the customer lifetime (loyalty).
On a different arena, CX interacts and collaborates with Marketing teams on the product development cycle by continuously translating VOC into marketing insights that are to be integrated into the products design and the product optimisation that results in the enhancement of products sales & revenues take ups! The key takeaway here is that revenues obtained via CX might witness a slow growth yet, it is characterised by being sustainable.
Customer Satisfaction (the prime reason for CX):
Adopting CX methodologies is mainly intended for achieving and optimising customer satisfaction levels. Attaining customer satisfaction is a customer basic right and is mandatory for the service providers to exist in the market – as previously stated- however, it also achieves objectives of Promotability via testimonials and word of mouth. Not forgetting the power of this in an era where social media exposure is enlarged. Satisfaction has a strong impact also on the customer decision to re-purchase as well and to continue with the service provider. Satisfied customers will grow from being satisfied to loyal to an advocate, which is an ultimate goal to all service providers and surely results in pushing revenue figures.
The biggest concern for every organisation is employees’ productivity that is best fulfilled via evolving an employee sense of ownership and engagement. There is a strong co-relation between employees’ engagement and customer experience. Various studies have shown that organisations with customer experience optimisation programs in action achieve a higher level of employees’ loyalty and engagement. This happens in a form of a continuous closed loop, whereas successful CX programs achieves more customer satisfaction and employees’ self-esteem and sense of belonging, that leads to more revenues and productivity, whereas this is reflected on a better employee pay, which encourages and empowers employees to launch more CX projects that lead to more Satisfaction and engagement and so on and so forth.
This is again connected to the upper two emphasised upon points of Revenues and Customer satisfaction.
Lower cost to serve:
Various companies strive not only to increase revenues but also to optimise their costs also. One of the considerable cost items that are mostly uneasy to reduce nor to skip is the “Cost to serve” customers. knowing customers’ preferences in accuracy provides companies with the right insights across the value chain. Product Managers and other stakeholders use this information in the efficient management of channels via multi/Omni-channel management. Additionally, the proper customer routeing to the low-cost channels helps in reducing the customers’ efforts achieving customers’ convenience meanwhile reducing the cost to serve on the unnecessary channels.
All of the above helps in increasing customers’ satisfaction, company’s Promotability, positioning, reducing termination and costs, and raising employees’ engagement and loyalty.
The featured photo is Mckinsey’s intellectual property