Digital Transformation Blog 05: The Business Benefits of CX
The profile of Customer Experience (CX) has risen rapidly in recent years. It is now accepted business wisdom that good CX provides competitive advantage and with that has come widespread support for projects that target improved performance through a CX approach.
Within a Digital Transformation journey one of the key outcomes sought is Customer Service Excellence. Marketing teams have generally been quickest to embrace the concept, leveraging positive customer feedback to win new business and improve the rate and efficiency of customer acquisition. But the real value of Customer Experience is in the ongoing relationship.
It is the delivery of the promise, not the promise that should take precedence for businesses.
The top benefit attributed to CX initiatives is improved customer satisfaction. Whilst this could be said to be fairly predictable it is encouraging to see surveys that report 73% of organisations undertaking CX projects have seen this benefit.
More surprising but equally encouraging, further benefits can be seen in improved employee engagement where CX initiatives are finding ways to put customers’ positive comments into employees’ hands.
For organisations seeking more traditional Return on Investment (ROI) benefits for a CX initiative improved customer retention is quite possibly the clearest and is also a by-product of the benefits mentioned above. Naturally, improved customer satisfaction and employee engagement should lead to improved customer retention, which is where the loyalty and advocacy gains come in.
Although hard to track scientifically, achievement of competitive differentiation is the big-picture benefit and a very tangible element at play in a CX implementation. More than just creating a good experience for your customers, to achieve competitive differentiation it’s crucial to create the right experience.
There are many real world examples of the benefits that can be realised through achieving Customer Service Excellence by improving the customer experience.
Business consultancy Walker suggests that by 2020, customer experience will overtake price and product as the key brand differentiator. A good example of this is Amazon, where the delivery and convenience often acts as a driver for the products themselves.
A study by Forrester found that CX leaders delivered compound annual revenue growth rates (CAGR) of 17% compared to just 3% for CX laggards
The major wins from CX are in the existing customer base, helping businesses increase life-time value of customers, reduce churn and drive customer advocacy through better relationships. These aren’t marketing KPI’s, these are the operational fundamentals for most businesses, underpinning the case for much wider ownership of CX, including at senior levels, within organisations.
Customer Experience really is a durable competitive advantage, but to be successful the whole business has to support it.
The best way to get that support is simple; prove that it works.
Oak Innovation is a long-established software house focused on communication management applications. We work with business communication providers and technology partners to deliver recording, reporting and integration solutions designed to increase operational efficiency, support compliance and deliver an exceptional customer experience. We combine technical know-how and creativity to provide solutions that are easy to use and fit with existing IT frameworks.
Our vertical market focus enables us to create unique solutions for a wide range of industry sectors including healthcare, education, finance, recruitment and hospitality. Our team of U.K based software developers are on hand to support unique transformation projects.