Leveraging customer experience for revenue growth: 7 steps to reducing customer churn, cutting the costs of servicing clients and boosting new business referrals.
It’s widely understood that it costs organisations at least five times as much to attract new customers as it does to keep their existing clients. So it’s becoming increasingly important for companies to invest in improving customer experience in order to reduce churn and retain them.
Janine Scott, Regional Manager – Customer Experience for Wolters Kluwer, is an expert in the field and presented a webinar on Leveraging Customer Experience for Revenue Growth for Wolters Kluwer Knowledge Week 2016.
The webinar demonstrates the power and value of effective customer experience programs and identifies the opportunities they present for revenue growth – through a reduction in churn, cutting the costs of servicing clients and boosting the number of client referrals, which is one of the best ways of generating new business.
Scott’s tips for creating an effective customer experience program include:
- Gaining support for the program by ensuring senior executives understand the value the project will deliver. An effective customer experience strategy will not only pay for itself in the long term, but will also create incremental revenue.
- Using a consistent yardstick (such as NPS) to measure customer experience. There are many tools that will do the job. The important thing is to make sure you select one that meets your organisation’s needs and establish a benchmark so you’ll be able to measure the results of your program.
- Keeping the measure simple and unambiguous. It can be tempting to ask several questions when surveying clients, but asking a single question to determine their loyalty (as opposed to satisfaction) is best.
“Asking clients if they would recommend a product or service helps ensure you receive clear feedback and also helps encourage clients to respond – no-one likes long surveys,” says Scott.
- Acting on information received. There’s no point asking questions unless you’re prepared to listen to the answer and act on it.
- Analysing data to identify the customer segment which presents the biggest opportunity and prioritising resources accordingly. For example, it may be more cost-effective and deliver greater dividends to address the needs of dissatisfied customers who take up a lot of time rather than to try and exceed the expectations of customers who are already satisfied with the service they’re receiving.
- Mapping the customer experience journey. Pictorialising the journey and the manual touch points along the way will help you identify opportunities to improve your clients’ experience. It may also help you uncover ways in which you can streamline the purchasing process, reduce service costs and achieve greater profitability.
- Understanding that improving customer experience is an ongoing commitment. The more resources you invest in this area, the greater the dividends.
If you missed the webinar or would like to share it with colleagues, you can access Leveraging Customer Experience for Revenue Growth here.