Why CX Matters
Everybody knows that the Customer Experience matters, but why does it? It benefits the customer, but what do you get out of it? Plenty.
Do we want happy customers simply because we don’t want the hassle of dealing with unhappy ones? For every dollar spent and every new initiative launched, the Finance chief wants to see ROI, and this is as it should be. Customer Experience is shown to be relevant when we can use metrics to prove its worth. It matters because when used strategically and with defined goals, it improves revenue, contributes to growth, and offers measurable increases to customer loyalty while reducing customer churn. Those are all metrics the CFO can embrace.
- The Silent Customer
Do you love customers that never call and complain? You shouldn’t. A customer base that is largely on auto-pilot, using your products without comment, complaint or feedback – neither ecstatically happy nor maddeningly unhappy, may be a relief to the call center. But a customer that doesn’t ever communicate with you is one who sees your product as a commodity, which can easily be switched out if the next guy offers it a day sooner and a nickel cheaper. A customer that you don’t communicate with – even one that doesn’t complain – is one that you will eventually lose. The Customer Experience will continuously engage that customer and create a greater sense of loyalty – and the result is less churn and an increased ARPU (average revenue per user), more revenues and more profits.
- Just Good Enough – A Misguided Strategy
Is your customer service “just good enough?” Then it’s time to make some changes. There is a philosophy in software development that focuses on delivering a first-issue “minimum viable product” that is just good enough to work, but doesn’t yet have all the bugs worked out. In the software world, the purpose of MVP isn’t just to be cheap, it’s to put out a viable product for users to test out and provide feedback to the development team, with a goal of continuous improvement. Too often though, in the Customer Service world, the strategy is to deliver the minimum viable amount of service and to see the call center as a logical place for the budget axe to begin swinging. Customer Experience matters – and it’s essential for the company to devote the appropriate amount of resources and manpower to derive the greatest amount of benefit from the initiative.
- Yes, we do want more money!
Do you want to increase revenues? Let’s face it, your businesses wants to make money, and we all want our unfair share of the pie. There’s nothing wrong with that goal. Having more money comes from two places: (1) cutting expenses, and (2) increasing revenues. Blindly cutting cost in Customer experience is not the path to long term profits. A Customer Experience strategy is never seen as a cost center, rather, it is an integral part of a revenue-generating strategy. When your customers are engaged, they’re happy, they like you, and they’re loyal. There’s more to that than just feeling good – that’s what really generates profits – and that’s why Customer Experience matters.