Can Positive Customer Experiences lead to Positive Business Outcomes? Really??

Welcome back to the latest edition of the #NowThat'sCXy Newsletter. This episode is inspired by recent conversations on LinkedIn over the last few weeks. The title of this article is a real question for many, so I will attempt to provide incentives to investigate Customer Experience further.

Are the following business outcomes important to most businesses?

1. Keeping more customers on the books?
2. Attracting more customers to the business?
3. Reducing costs where it doesn't compromise growth?
4. Increasing revenue and sustaining business growth?

If you answer yes to all the above, then read on. Let's look at what Customer Experience does for each business outcome above. #NowThatsCXy

1. Keeping more customers on the books

Research on CX has shown that improving CX can lead to significant increases in customer retention and customers who become loyal. McKinsey research found win rates increase 20-40% and customers defect 10-15% less in businesses that excel in CX. When you factor in that Bain & Co. research finds that increasing customer retention by 5% can lead to 25-90% increase in profits, there are attractive rea$on$ to get good at CX. #NowThatsCXy

2. Attracting more customers to the business

Let's start at the impact on current customers. Improved CX (that creates results for customers) creates more loyal customers and loyal customers (72% of the time) refer 6-9 new customers when asked. Not surprising as Nielsen research confirms that 92% of customers trust recommendations from friends and family vs. company ads. The Temkin Group found that the chance of recommending the business increased 77% and customers were 4.5X more likely to refer. More customers = more 1st transactions, more upsell potential and more cross-sell potential.

Additionally, improved CX insights on customer understanding improves the company's ability to effectively engage customers at each stage of the purchase process, especially during their selection process, ownership phase and after sales phase. With all these benefits, it's a surprise that Harvard Business Review finds that only 17% of business executives report they were extremely effective at understanding the customer decision journey. #NowThatsCXy

Now for a brief commercial...

Are you a US-based small business? Is your business seeking reliable strategies to scale? Then check out this 20min conversation between me and the Executive Director of the DC Small Business Development Center, sponsored by PNC Bank, on The Small Business Report . We discuss why Customer Experience is so critical to Small Businesses. Click the pic below to listen.

If you'd like an opportunity to attend a FREE webinar hosted by the DC SBDC on 'Scaling a Small Business with Customer Experience' on July 11th at 12noon EST, you can RSVP below by clicking on the graphic below. I will share more on ways adopting CX strategy is good for business.

3. Reducing costs when it doesn't compromise growth

CFOs and CEOs love when you can bring a solution that provides great ROI or reduces cost. CX is one of those solutions. When loyal customers refer, they reduce Customer Acquisition Costs - a traditionally expensive business expense. Research shows that the cost of acquiring a new customer by traditional means can cost 7-10X the cost of investing in creating loyal customers. Therefore, each referral represents a savings to the business that provides great ROI. Additionally, McKinsey research identifies that companies that are great at addressing the needs of customers along the customer journey can see savings of 10-20% that flow thru to the bottom line. #NowThatsCXy

4. Increasing revenue and sustaining business growth

Amex research found that customers are willing to spend 17% more in positive CX environments and Bain & Co. research reports that customers spend up to 140% more in positive CX environments vs. poor CX environments. This speaks to multiple factors sparked by great CX - customers become loyal, buy more and stay longer. This is the axis of Customer Lifetime Value as increasing the length of time that a customer stays with you allows your business to create a relationship that facilitates upsells and cross-sells (and more referrals).

So, how do you know if your business is on the right path? How do you know what your business may need to amplify all the good things it may already be doing? You can leave it to chance (like most businesses do) or you can take action. A great start is using our FREE IAM CX Assessment to assess where your business is and get immediate feedback. Take advantage of our FREE 15min CX Assessment Consultation to discuss what your assessment feedback means for your business and how we may be able to help. Be sure to ask about our Voice of Customer/Voice of Employee solution and how we can even work with small to medium-sized businesses. We look forward to partnering with you in your growth. #NowThatsCXy

Have you been incentivized to investigate Customer Experience for your business? Can you find reasons not to lean into Customer Experience as the strategy to scale your business? CX is applicable in many industries and any sized business.

That's it for this edition of the Now That's CXy Newsletter. As usual, share your feedback in the comments. Until next time...Be Blessed with CX. Go Win!

Yours in CX, Roger Nicholas