We all know that a good customer experience is something that consumers appreciate. Pure logic dictates that this must be true. However, how do we quantify how much consumers appreciate being taken care of well?
Defaqto Research has just published the results of a survey that targeted retail customers. The survey was designed to try and get an indication of just how heavyweight the customer experience actually is.
The largest take away from the results of the research, is that 55% of retail customers would be willing to pay more for products or services, just as long as they receive an exceptional customer experience.
This is actually not that surprising, we have seen similar results from previous research by multiple research companies. The real question, is why when it has been proven time and time again that there is cash being left on the table, if we do not provide consumers with a good customer experience, why do so many companies still fail to deliver one?
Just consider for a moment what customers are telling us. They are saying, “treat us better and we will give you more money”. Surely it’s a no brainer to pick this up and run with it? Or is it? Well, it’s all about ROI. That pile of cash left sitting on the table needs to be larger than the pile of cash it will take to improve the customer experience.
However, if we take this simple calculation at face value, we are making a mistake. Of course, short-term investment is going to outweigh short-term gains for any company that is serious about improving the customer experience. Where the ROI is really solid, is in the mid-term to long-term. Once we can start not only improving the customer experience, but also measuring levels of customer satisfaction and loyalty, we hit gold.
Customer Experience Management is not a short-term methodology. Although there is always some low hanging fruit in the short-term of any CXM initiative, such as closing the loop to lower churn rate.
Where CXM really pays dividends, is in learning what our customers think, and how they react to changes we make to the customer journey. Once we are armed with this kind of customer intelligence, we can begin to leverage it to gain a significant ROI on CX investment in the medium to long-term.