Imagine this: You’re doing everything you can to grow your business. You’ve redesigned your website, you’re sales team is working hard, and you are indeed getting new customers. But your customer churn is through the roof, and you don’t even know if your customers are satisfied. What’s worse, you’re running out of ideas and your investors are looking for a reason to keep the cash flowing. The issue is that you’re not thinking about the big picture because you’re too focused on individual systems and interactions. You’re not thinking about customer experience. What the concept of customer experience forces us to do is look at a customer’s entire perception of your brand as a fluid and evolving thing – shaped by each and every interaction they have with it. Let’s look at the true cost of bad customer experiences.
There’s a lot of buzz right now about customer experience (CX), and why it’s the next big thing for companies to differentiate themselves in a competitive market. But what are people really saying? By dedicating themselves to a better customer experience, companies can reap many benefits including higher revenues and retention, happier employees, more recognition, and a chance at thriving even when their industry is not. Examples of these companies are seen all over business magazines and they line the business bookshelves of the world. Southwest Airlines, Starbucks, and Whole Foods Market are revered icons of this paradigm. So how did companies like these mold themselves to become models of great customer experience?
This is a guest post from Mikhail Dubov, founder and CEO of Chattermill, a data analysis company that specializes in customer experience management.
To build passionate customers, you must take into account all types of customers and not just your detractors. It is hard to find a company these days that does not want to listen to its customers. However, only a select few have truly mastered this art. One of the most common mistakes we see is only focusing on negative feedback or detractors in the Net Promoter Score terminology. It’s easy to see the intuitive appeal. You think that the key to better customer experience is to solve problems and negative feedback seems like a natural place to start. Unfortunately, this is not always the right approach. Promoters are often a much richer source of insight and should at the very least be listened to as much as detractors. Let’s see why:
Getting customers is hard so why not try to keep the current ones even longer? Keeping them should be easier than getting new ones. You know them already, you know what they want and you know what they expect of you – or do you? With fierce competitors building communities and aggressively marketing on price, you have to put real energy and effort into maintaining a consistent customer base. Just providing a great product or service is rarely enough to keep them coming back for more. You need to be able to create real customer loyalty. Loyal customers are those ones you want to have. And actually, according to White House Consumer Affairs It is 7 times more expensive to find a new customer than to keep an existing one and on average, loyal customers are worth up to 10 times as much as non loyal customers!
In the world of data, Net Promoter Score or NPS has risen to be one of the most used metric to measure customer experiences. To jump right in to it, the Net Promoter Score is a particular statistic that some researchers propose can predict whether overall customer loyalty will encourage your business to grow or not. The main idea of NPS is alluringly simple. Take the percentage of customers who are highly likely to recommend you (promoters), subtract those who are disinclined, indifferent, or only somewhat likely to give you good word of mouth (detractors). There you have it: %P – %D = NPS. The prediction is that a higher score allows for better top-line growth. Continue reading “What is Net Promoter Score (NPS)?”
More organizations are utilizing online surveys as a method of capturing satisfaction feedback from their customers. Propels in innovation in the course of recent years have made it exceptionally savvy to gather a lot of information on a constant basis. Furthermore, organizations are starting to hop onto the temporary fad to accumulate their customer experience data. In any case, in the event that it isn’t done well, you can without much of a stretch wind up with poor results that don’t generally bolster the vital or operational choices that you set out to benefit from in any case. Continue reading “Why is it important to measure customer satisfaction?”