CX Matters – 5 Ways It Can Increase (or Decrease) Revenue, Client Retention or Brand Image

3 minute read

Many companies claim to offer outstanding products and services, however, the client’s perception is the ultimate truth. By 2020, Customer Experience (CX) is projected to become the top brand differentiator, over price and product, according to the Customers 2020 Report.

Consumers are more educated, savvy and vocal than ever. They want and deserve a positive experience, or they will leave. From corporate to retail, large to small business, creating a positive customer experience is essential to long term success. In fact, according to Lee Resources, 91% of unhappy customers will not willingly do business with the same company again. And, according to McKinsey, 70% of buying experiences are based on how the customer feels they are being treated.

With statistics such as those noted above, all businesses should look closely at what type of experience they are providing for their customers. Many companies now have Customer Experience executives. However, executing this role properly goes beyond reiterating the company’s marketing materials. CX officers should review and remedy all the things that are NOT being done for the customers. When stats indicate that a customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related (according to Bain & Company), all types and sizes of businesses are at risk for defection.

The image above illustrates the challenging process of finding leads, converting them to prospects and the work it takes to turn that precious small percentage into clients. Once you have those clients, it is your responsibility to keep them, and continually satisfy them, throughout their journey with your company.

Industry examples of the impact of CX

Insurance

In the 2014 National Underwriter Broker Survey, when working with insurance companies, brokers cited that what they valued most was ease of working with them (not price, not product). How you support your brokers and distributors in any industry is vital to building long term relationships.

Education

Higher education is big business. When students transfer out of a school because of a poor experience, they are extremely vocal about the reasons why. This affects brand image and potential future applicants and possibly grants and funding for the school.

Hospitality

Social media has become a platform for people to voice their displeasure (think Trip Advisor). Many hotels will ask how a patron enjoyed their stay, and if they did not, they will proactively offer to remedy a poor experience with a discount or free amenity. When you can put a positive end on a mediocre or poor story that can save a business relationship and prevent negative association with a brand.

Travel

Most airlines now have a dedicated social media department that responds almost in real time to tweets and posts. A single negative tweet can go viral in no time, and airlines know it is wiser to respond and handle issues immediately. They monitor for customer experience and service issues because they do not want to let negative publicity spiral out of control.

Customer Experience has many facets, and for that reason many companies do not take any action. When you make monitoring and assessing your customers’ interactions with your company a best practice, it is easier to make nimble, agile adjustments as needed. This can improve revenue, improve client retention and boost your overall brand image.

To learn more about CX, consider viewing my on demand workshop, sponsored by SCORE. “Five Ways Customer Experience Can Increase (or Decrease) Your Revenue, Client Retention and Overall Brand Image.” Viewers will learn:

  • 3 components of a positive customer experience
  • Why CX affects all businesses (B2B, B2C, large and small)
  • What a poor CX can cost your business in revenue and client retention
  • Areas to evaluate in your business to improve CX
  • 5 ways that CX impacts revenue, client retention and brand image

This article was syndicated from Business 2 Community: CX Matters – 5 Ways It Can Increase (or Decrease) Revenue, Client Retention or Brand Image

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