{"id":19832,"date":"2021-08-18T08:29:05","date_gmt":"2021-08-18T07:29:05","guid":{"rendered":"\/gb\/en\/blog\/?p=19832"},"modified":"2021-08-10T10:29:32","modified_gmt":"2021-08-10T09:29:32","slug":"the-roi-of-customer-experience","status":"publish","type":"post","link":"\/gb\/en\/blog\/the-roi-of-customer-experience\/","title":{"rendered":"The ROI of Customer Experience"},"content":{"rendered":"

If you\u2019re a frequent reader of this blog and my articles, you already know that customer experience<\/a> (CX) is a recurring theme for me. The reason why? I firmly believe CX is the way organisations will differentiate themselves from their competitors and win over customers.\u00a0<\/span><\/p>\n

It would seem that I am not the only one that has sights set on the delivery of CX, as <\/span>almost half of organisations stated that CX was their top focus over the next five years<\/span><\/a>. The only challenge with this focus is that just as many business leaders have reported <\/span>not being satisfied with their ability to show measurable impact from their CX initiatives<\/span><\/a>.\u00a0<\/span><\/p>\n

If you are in the half that is looking to CX as your top business initiative in the coming years, it will be incumbent upon you to be able to demonstrate the impact you are having on the business. Yes, NPS scores can be an indication of customer satisfaction, but that is not likely to get you the necessary investment needed to drive CX.\u00a0<\/span><\/p>\n

Below I have listed a few things to consider when looking to measure the ROI of CX which when demonstrated can help get more budget to drive these all too important initiatives.<\/span><\/p>\n

Customer retention<\/b><\/h2>\n

Given that <\/span>65% of business comes through existing customers<\/span><\/a>, it is vital that businesses focus on customer retention. Yet, most brands have an average retention rate below 20%.<\/span><\/p>\n

So what is the impact of improving customer retention? According to multiple studies conducted by Bain and Harvard Business Review, <\/span>a mere 5% increase in customer retention can result in a 95% increase in profit<\/span><\/a> \u2013 pretty staggering!\u00a0<\/span><\/p>\n

The way you are going to make these gains in customer retention is by delivering a world class experience to your customers.<\/span><\/p>\n

Be sure to benchmark<\/a> your current retention rates and measure improvements to your retention each quarter as you implement your CX initiatives. Multiply that by your average spend per customer and you will be able to demonstrate the value of CX as it relates to your retention.\u00a0<\/span><\/p>\n

Customer acquisition<\/b><\/h2>\n

One of the many fallacies of customer experience is that it begins once someone becomes a customer. However, the truth is that CX begins long before anyone buys anything.\u00a0<\/span><\/p>\n

Ensuring you remove the friction from the buying process is the beginning of CX and yet many companies overlook this pivotal point in the customer journey. To do this in the digital age in which we now live takes an investment, but it is one worth making.<\/span><\/p>\n

While <\/span>acquiring a new customer certainly costs more than expanding<\/span><\/a> a current customer relationship, it should not be discounted.<\/span><\/p>\n

Define your customer acquisition costs and measure against the average sales price of a new customer to get the ROI of CX on new customer\u2019s acquisition.\u00a0<\/span><\/p>\n\t\t