Lately we’ve been delving deeper into customer experience and what it means for your business both today and into the future. From how to define Cx and make it a part of your long-term strategy, to how it drives technology considerations and is linked to employee relations. If you’re convinced Cx is important (and most business leaders are), but you still need to make a case for investing in it, you’re not alone. According to Harvard Business Review, 45 percent of organizations find it very difficult to tie customer experience investments to business outcomes.
What’s more, only 28 percent of Cx professionals reported having a model that ties Cx to business results, while only 22 percent even track the financial results of their Cx programs, as reported by Forrester Research in The Revenue Impact of Customer Experience, 2015.
Making the Case
Existing data can help you make a strong case for investing in a culture and strategies that promote customer experience throughout your organization.
- The Forrester study mentioned above explored the revenue potential associated with three areas: customer retention, enrichment, and advocacy across nine industries to determine how Cx improvements influence each of the areas. All nine industries covered in the report show a connection between improved CX and increased revenue. In fact, a one-point increase in CX Index score resulted in $15 millionto $175 million in revenue, depending on the industry.
- InOracle’s 2011 Customer Experience Impact Report, the company cites research that found that 86 percent of customers will pay more for a better customer experience.
- The American Express 2011 Customer Service Survey, with 70% of Americans willing to spend an average of 13% more with companies they believe provide excellent customer service.
Good vs. Bad Customer Experience
According to a study published in the Harvard Business Review, researchers found that among thousands of customers those who had the best past experiences spend 140% more compared to those who had the poorest past experiences. Similarly, RightNow’s 2010 Customer Experience Report found that 82 percent of customers have left a company because of a bad customer experience.
There are many more studies with similar results, making the point that not only is investing in customer experience “worth it,” for businesses today, but ignoring it can have far-reaching, long-term negative impacts.
CH Consulting Group helps companies discover how to harness the power of Cx to drive growth and revenue. Contact us today for a free estimate.
