Mind the Gap

By Laura MacDonald

So, you have a well thought out customer experience strategy. You know what matters to your customers and how to provide this. Except, what’s this… Your customers don’t agree? They say you just don’t get it. Or perhaps their actions speak louder than their words. They’ve gone a bit quiet; they aren’t placing orders and in fact they have simply disappeared…

Often, companies only realise that they have a CX problem when customers start defecting to other organisations. We want you to be able to nip this in the bud earlier. In fact, we want you to be 100% sure that your CX is first rate, that you make everything so incredibly smooth for your customers that they positively enjoy dealing with you and prefer you to your competitors.

The first step to making this happen is to work out the current state of affairs. How your customers think it’s working out- what they think of your company, your product, whether you anticipate their needs and whether they’ll buy from you again. We then conduct the same assessment with your employees- how do they think their company performs in these areas? We use 16 key metrics that are proven to really get to the root of things.

Once we have these results, we perform an analysis of the 16 areas examined and then produce a gap analysis. A gap analysis is useful because it forces you to think about the contrast between how you as a company think the CX is working and how your customers think it’s working out. Also, do the views of these two parties in any way correspond to the official line presented within your CX strategy?

In the example below, customers scored the company over a point lower in average than the employees. The lowest scores by customers are for categories that employees have rated relatively highly (anticipating needs, repeat purchase, overall customer experience).

This information provides a springboard into planning and making CX improvements which will produce a drastic uplift to revenue. The lowest customer score, for which there is also a large gap is for the category of ‘anticipate needs.’ This category is all about providing what the customers need before they even realise or have to ask. It is also about being able to leverage that understanding and strong relationship to sympathetically offer additional products or services. Correspondingly, the linked categories of ‘repeat purchase,’ and ‘willing to recommend’ are also rated lowest by customers here.

Why are these three categories so important? Because these create ongoing revenue for your business, your bread and butter stuff. It is commonly estimated that a 5% increase in customer loyalty can create up to a 30% increase in profits. If you aren’t going the extra mile to encourage customers to make repeat sales, then you’re potentially losing out on a level of additional profitability that could be the deciding factor for the survival of many companies this year.

It is also commonly stated that it is at least six times more expensive to find a new customer than it is to get an existing customer to return. If you can keep your existing customers happy, meet their current and future needs then they will keep spending with you. These customers will then be happy to refer others to you, directing new customers who have already been led to believe in the value of what you are offering. Many companies simply can’t afford to budget for a large investment into marketing and sales right now, so these free ambassadors really are invaluable to your future success.

The lesson is to mind the gap! Look after your customers and they will look after you. CXCo works with your business to identify where you are in the CX journey and then works with you to plan and implement improvements.

 

 

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