We have published the Centriam CX Money Map, which details 12 drivers that make the financial case for a customer experience program. In our last post, my colleague Joe focused on customer enrichment. This week, I will delve into the two drivers involved with reducing costs in contact centers and marketing while maintaining, and potentially improving, customer experience.
Improving customer experience increases customer lifetime value. In fact, it dramatically increases it, as research indicates that satisfied customers spend more than twice as much as unsatisfied customers. But how does one begin constructing a business case applying this fact?
To help you build or improve your business cases, Centriam built a single page summary — a map of sorts — which outlines twelve different financial gains resulting from customer experience improvements. These twelve drivers are aggregated into five categories.
Data-driven decision making. We all aspire to it. Whether it’s in Customer Experience management, targeted marketing, deciding which candidates to hire, choosing a new car, or picking the teams in your March Madness office pool.
Make Shopping Enjoyable to Encourage Sales
On a previous blog, my colleague Jason shared a finding from Centriam’s 2017 Retail Study: customers who had an enjoyable shopping experience were more likely to be promoters. This finding is especially robust among millennials, the largest generation in the US. Millennials who said their experience was extremely enjoyable were nine times more likely to be satisfied with the price they paid, and twice as likely to repurchase as millennials who said their shopping trip was slightly or not enjoyable. These findings suggest that making shopping enjoyable could potentially double your sales among this key demographic!
Many retailers are finding it difficult to connect with millennial shoppers. Even when able to sell to them, they are often unable to sustain the relationship. Findings from Centriam’s 2017 Retail Study confirm this: millennials are more price sensitive, less likely to repurchase, and 40% more likely to be detractors. [Click to Tweet]
Using conclusions drawn from Centriam’s 2017 Retail Study, we have proposed areas of focus to enhance customer experience for two common NPS objectives.