Quantifying Customer Experience ROI With Dropthought

Published on:
Mon Nov 09 2020
Customer Experience

For a long time, calculating and investing in customer experience, in comparison to other important elements like sales & marketing, has been seen as a subtler part of any business. A pragmatic customer experience encourages loyalty, helps businesses retain customers, and encourages brand upholding. Leaders and managers often struggle to help their higher management see the value of CX and get them to invest in improving it. It has, however, been proven over time that delivering great customer experience (CX) is important. A memorable customer experience is vital for the sustained surge of any business as it helps with overall revenue generation and improved ROI.

49% of U.S. consumers say companies provide a good customer experience today.

“Customer experience is how a customer feels about the sum of their interactions with a business,” said Dave Dyson, Sr. Customer Service Evangelist, Zendesk. “It involves every way a customer interacts with a company, at all stages of the customer journey—including the marketing materials they see before they become a customer, the sales experience, the quality of the product or service itself, and the customer service they receive post-purchase.”

Customer experience is entirely focused on the relationship between a business and its customers. It can start with a simple hello and includes every interaction, every step a customer takes, no matter how limited the interaction turns out to be and even if the results don’t include a purchase. Whether it’s a call to a call-centre or an exposure to a marketing advertisement, every small or big exchange between businesses and their customer base builds the relationship.

How do we quantify customer experience to determine what we’re doing well and where to improve?

Evaluate customer feedback survey results:

Reach out to your customers, asking them to provide their feedback and fill out satisfaction surveys on a regular basis. With the help of DT, you can build surveys and enable your customers to provide their feedback with ease of access. DropThought provides you access to measuring customer feedback through NPS (Net Promoter Score), which is a great way to understand whether your customers are likely to promote your business within their social groups based on their experience or if they are unhappy with your services. With the help of your NPS score, you get access to your team-by-team performance to ensure you're performing well across the board. You can also follow up on customer feedback — to connect with customers and show them you care about their needs. Showing concern and actively following up with your customers can help deepen your relationship with them and improve overall retention and drive loyalty.

Identify reasons for customer churn:

Customer churn can happen, it's common and can be avoided if you pay enough attention and act quickly, so you can prevent it from happening again. Keep a regular check on churned customers to determine whether the numbers are increasing or decreasing.

Ask customers for product or feature requests:

Create a forum for your customers asking them about new products and features. Share the forum via email survey, social media or through a community page, giving customers opportunity to proactively offer solutions and suggestions.

In the year 2020, customers are now empowered like never before, and providing them great experiences can help businesses drive loyalty and revenue in the long run. Ignoring the vitality of improving customer experience at the first instance of difficult times is no longer an option for businesses, as the voice of the customer continues to get louder and louder each coming day.

A pizza company in Boston, Blaze, used Pi Day as inspiration to run a promo that offered a memorable and positive customer experience — they offered discounted pizza pies (get it?) for only $3.14 on Pi Day.

What is the ROI of customer experience?

Calculating the return on investment (ROI) of customer experience initiatives is critical because it facilitates marketing & sales teams to build strategies and make far-reaching business decisions. If done right and at the right time, investment made to improve customer experience by focusing on the right metrics and properly analysing data helps with effective decision making and can bring back a strong return on investments.

At DT, we believe that to build a sustainable relationship with a customer, we must value their feedback. We believe in building a situation based and feedback centric client engagement plan that will not only help businesses to leverage the data collected abundantly, but done correctly can turn into a long-lasting opportunity to keep your customers intact and keep the revenue bar up and running. Your customers can express their opinions through the surveys and provide suggestions about your CS team, product onboarding, and more throughout their customer journey. By doing this, you are better able to retain your current customers, identify key Customer experience, and revenue.

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