We regularly document that great customer experience is undeniably linked to higher revenue spend, business growth and reduced churn. In fact the businesses that fall into the higher percentile for customer experience excellence can often see revenue margin of four to eight per cent greater than businesses that don’t.
The relationship between providing customers with great CX and their continued loyalty is transparent. If you fail to deliver an experience to rival competitor brands you leave yourself vulnerable to customer defection and higher levels of churn. However it’s not just about retention and the revenue generated through continued spend. Once you’ve lost a client, how much does it cost the company to acquire new customers? It generally costs six times more to solely focus on the new business function rather than focus on retention.
In order to excel in CX delivery there needs to be a clear process of understanding customers needs, anticipating and meeting those needs, delighting customers and installing trust through a fair and transparent service. All these stages work towards keeping the customer retained, engendering loyalty, and heighten brand advocacy. Once you reach the stage of brand advocacy, your customer is likely to be in a position to recommend your products or services based solely on the experiences you deliver. It’s the perfect situation, not only do they spend more revenue month on month, year on year, but they also generate new business in the most cost effective way – word of mouth marketing and third party validation