How does Customer experience affect profit? Customer experience has a profound effect on nearly all aspects of your business. There is consensus among entrepreneurs, managers, and executive teams all over the world and across all industries that customer experience presents a key opportunity for competitive advantage and ultimately long-term growth.
When asked, 86% of customers who have a positive customer experience have indicated that they are likely to repurchase from the same company.
On the other hand 91% of customers who had a bad experience will not willingly buy from the same company again.
There is a disproportionate impact of good and bad cx.
Bad customer experience will damage your company for more than good CX will improve it.
In this post we will break down how Customer Experience affects profit
What is Customer Experience?
Happy customers are good customers, engaged customers are loyal ones. So it is of paramount importance to keep your customers happy and engaged. But how do you make your customers happy?
Research has shown that customer satisfaction is boosted by three things
- Fast Service
- Personalised service
- Consistency
The issue which most companies face is not that they can’t make customers happy. It’s that they can’t make their customers happy consistently.
A consistently good experience which can be replicated for each and every customer is the essence of what a customer experience strategy is.
Read our article on why you need a CX strategy here.
How Does Customer Experience affect profit?
Creating loyal customers will always be one of the best ways to ensure the long-term success of your company, and customer loyalty affects profit both in creating additional sales, and reducing costs in other areas. Acquiring a new customer costs around 6-7 times more than retaining an existing one, so your CX budget is better spent converting customers to being loyal instead of just acquiring new ones in order to cut costs.
When you have an effective customer experience strategy in place, you will be creating loyal customers every day – and in turn securing the long-term growth of your company. On the other hand when you aren’t focused on your customer experience, and customers are regularly unhappy with your company, you are missing out on a significant portion of potential sales as well as losing valuable customers. 91% of unhappy customers will not willingly buy from your business again unless they have no other option.
This means that all it takes is one bad experience for you to lose out on capturing the lifetime value of a customer. With positive effects on revenue and the lowered cost of acquisition, there’s no doubt that any additional revenue earned will have a significant effect on profit.
Customer experience is a long-term strategy, and in a climate where many companies are more concerned with short-term gains, the opportunity for market leadership is greater than ever.
Which is why now is the most crucial time to be investing in a CX strategy for the future.
Contact us today.
info@cxloop.com.au
for further reading check out the resources below.
(1) https://blog.hubspot.com/service/customer-experience-roi
(2) https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers2020-1
(3) https://www.huffingtonpost.com/vala-afshar/50-important-customer-exp_b_8295772.html
(4) https://www.helpscout.net/75-customer-service-facts-quotes-statistics/
(5) http://www.bain.com/infographics/five-disciplines/
(7) https://www.thinksales.co.za/sales-strategy-insights/the-real-cost-of-losing-customers/
