Written by Kushal Dev | Co-founder, Customer Guru
Loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 7x as likely to try a new offering, and 4x as likely to refer.
– Temkin Group
Customer centricity has a financial, emotional, innovative and business impact on your organisation. It enhances customer and employee experience, fosters sales, defines product roadmap and ensures customer loyalty. Organisations do understand these benefits of enhanced customer experience but to succeed with and sustain customer delight they need to bring about a cultural change. Gartner suggests that by 2018 more than half of all companies will have modified the way they do business in order to improve the customer experience. This would mean huge investments in process and cultural change in an organisation but with the benefits it brings to these organisations it makes complete financial sense.
Here are a few points on the importance of customer experience investments in your business
High return on investment
It costs at least 5 to 10 time more to acquire a new customer than to retain an existing one. Retaining your existing customers means that they continue to buy from you and recommend you to friends and family. You are able to generate maximum returns on the investments made in acquiring them. They are aware of your products and services which saves you money spent on new user adoption and education. Customers that are happy have fewer service request which means lower support and maintenance costs. Employees are less stressed about dealing with them which means lower attrition and hiring costs.
Predict your Sales
Knowledge is power. When you are confident about retaining your customers and know their buying pattern, its easier to predict sales. New business is like a running tap which fills your bucket (sales target). Customer churn are the leaks in your bucket. The better you plug these leaks in your bucket the faster your bucket fills and easier it gets to predict when your bucket will be full.
High employee morale
Employees are the backbone of your organisation. Working for a customer centric organisation not only instills a sense of pride in them but dealing with happy customers makes their life easy. Irate customers are difficult to deal with and talk to which lowers employee morale. Happier employees are not only more productive but stick with an organisation longer. This works almost in a cycle, happy employees = happy customers and vice versa!
Quick return on Innovation
I am firm believer of Eric Ries’s movement of Lean Startup that is transforming how new products are built and launched. I however like to add that to seek your customer’s insights you need an army of engaged customers who are willing to share genuine insights with you. Insights not just on how they believe they will use your product but also on how they end up really using and adopting it. Constant test and development requires you to actively listen to your customers and if you are successful in building this engaged lot their feedback is instrumental in defining your product roadmap. A roadmap which is not defined just by what you think your customers need but a highly qualified requirement which solves your customer needs and eventually building a product that your customers are bound to use.
Do you believe that investing in Customer Experience could be your recipe for growth in the coming years? Would love to hear your strategies and goals. Do ping me on firstname.lastname@example.org, excited to hear your thoughts.