Profit with Customer Experience

Profit with Customer Experience

According to Mark Hurd, President of Oracle, only 2% of customers feel their expectations are always met and only 49% of customers feel their expectations are sometimes met. This means that the majority of companies are inconsistent with the experiences they are delivering to customers. Disagree? Ask yourself, can customers consistently expect the same level of experience from everyone on your team? If not, take note. Sixty-four percent of customers said they would strongly consider stopping doing business with a company after one bad experience.

Based on the scenarios above, customer experience (CE) is a significant source of untapped profit. To capitalize on it, companies must turn CE from a “nice to have” to a “must have.” They must view CE from the perspective of how it can decrease costs and increase revenue. They must also assess every customer interaction with the company from the outside-in and ensure the right people, process and technology are in place to consistently deliver positive experiences. As Steve Jobs said, “You have to start with the customer experience first and then work backward.”

In the simplest terms, CE is the perception that customers have about a company when they interact with them. Companies that deliver positive experiences before, during and after a sale attract and retain more customers. They sell more to them too. In fact, customers spend 30% more, on average, with companies where their experience and view is positive. In addition, it costs eight times more to acquire a new customer than it does to retain an existing one, so ensuring positive CE throughout the relationship is good business, both for the top- and bottom-line.

All contents copyright © 2012, Josh Lowry. All rights reserved.


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