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Just about every organisation wants to last into the future. Business owners and employees need to fund your retirement. Charities must continue to support their causes. Public Sector bodies have to do more with less while demonstrating value for money. If you provide a poor customer experience, you probably won’t succeed. I say probably as we have all heard horror stories of business that treat their customers with disrespect, if not dishonesty, and somehow stay in business. I would argue that the internet gives such businesses nowhere to hide.

So, compelling customer experiences are central to a sustainable, robust business model and a poor experience will, eventually, guarantee failure. Here are just 12 of the ways a poor customer experience could impact your business performance today.

Of course, we are human; we don’t focus on the long term all that well, not when we can gain in the short term. We need to appreciate the more immediate benefits of a compelling customer experience. In the simplest of terms, they come in the form of business growth and cost reduction.

Customer experience (CX) for business growth

Let’s start with a reminder. Your customer experience starts when a potential customer finds you. Some customers will come to your brand and click ‘buy now’ on a whim. But many more are researching the market to make the right choice. That means your customer experience starts by giving each customer the information they need in the format (website, chat or phone call) they prefer. For example, I find too many businesses are using chat to sell rather than support. So, if I can’t find what I want on a website, I click away. If you want my business, put key information on your site.

As potential customers travel through your sales funnel these moments grow more important. If you are in B2B, don’t assume buyers are happy to have a ‘sales’ conversation. All evidence suggests B2B buyers bring their personal shopping and customer experience expectations to work.

Say you have made the sale, can you relax? No, if anything, you need to step up your game, as dissatisfied customers are much more vocal than satisfied customers. That is why you are seeing more providers getting in touch after the sale. They are making sure their customers are happy and revving them up to post a positive review. You need to be doing the same, if not more. Then you have to make sure your customer service team understands your customers and wants to deliver a compelling customer experience. They must also, as we see in Customer Experience Management, pass on the information needed to improve your products, services and customer experience.

In short, from sales to end of relationship, a compelling customer experience will help your business grow. By that I mean both selling more and being able to set higher prices.

Customer experience (CX) for cost reduction

I am a proponent of understanding how organisations generate value, because any business that spends money on activities that don’t add value will lose money.

Furthermore, knowing how we add value lets us plan realistic cost reductions. Of course, value management is a key part of many quality methodologies; for more about the relationship between customer experience and quality management, please visit this post.

Value – noun
/ˈvaljuː/

Actions that transform a product or deliver a service for which the customer will pay.

Necessity – noun
/nɪˈsɛsɪti/

Actions that must take place, for example, for regulatory reasons.

Waste – noun
/weɪst/

Actions and methods that are inefficient or produce the wrong outcome.

If your customer experience is poor, then you may have a lot of customer service staff just to address issues. This expenditure is a necessity, and you can argue it boosts sales. But, if your customer experience is compelling, then your customer service team can become part of your income-generating operations. The same people can be onboarding, delivering or developing new products and services. So you can handle higher numbers of customers during the value-adding phases of your work.

You can also eliminate other costs. For example, if you sell products, you can minimise returns. That reduces the cost of logistics, distributor charges, handling and disposal. If you are developing a new product or service, then using the voice of the customer can help you both decrease the number of in-service modifications and lengthen life cycles. As an additional benefit, you will spend less money selling to happy customers than recruiting new ones.

More about customer experience (CX)

Critical success factors for a compelling customer experience

Can a handful of essential activities help you deliver compelling customer experiences (cx)? We believe so, see our list of best practices.

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CX for business growth and cost reduction

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