Customer Experience: The New Business Battleground
As the year 2020 draws near, research predicts that customer experience will be more important than a product’s price and quality. It is how customers view and interact with your company's brand and is now the primary source of sustainable competitive advantage. So, if you’re trying to find ways on improving your business edge, delivering a superior customer experience can help your company become distinctive and outpace the competition.
Today's empowered consumers may interact with your brand through multiple channels. They can demand more and expect a holistic quality customer experience in their journey across all touchpoints, whether it be in-store, online, or on social media.
Customer expectation has leveled up from being customer-focused to customer-committed.
Businesses must step up to meet new client demands. Having an expert Contact Center Outsourcing partner that provides omnichannel solutions can bring your customer experience to greater heights.
Why Your Company Needs to Improve the Customer Experience?
Optimizing your customer experience is business critical that ultimately boosts customer loyalty and corporate profitability. Consider these top three reasons why you need to proactively invest in improving the customer experience:
1. Increase Customer Retention
Retaining existing customers costs less than winning new ones and can yield higher profits. Harvard Business School projects that increasing your customer retention rate by even 5% can raise your profits between 25-95%. Profitability tends to increase over the life of a retained customer. Managing your customer retention rate through quality customer experience is an indispensable part of growing a sustainable business.
2. Improve Customer Satisfaction
Businesses can expect to be rewarded with more customer engagement and keep clients coming back if they deliver excellent customer experience end-to-end consistently. According to McKinsey & Company, creating a positive customer experience across all customer segments can result to a 50 percent increase in customer satisfaction, 15 percent reduction in the company’s customer service cost, 20 percent increase in employee satisfaction, and 50 percent deduction in customer churn.
3. Leverage Cross and Up Selling
Both up-selling and cross-selling are important strategies in business profit generation. When you properly address these key factors, they can positively impact your bottom line revenue. In this era where competitors are just a click away, the best way to inspire your clients to stick around is to create a delightful customer experience. When they feel that you’re willing to go above and beyond the extra mile in taking care of them, they are more inclined to patronize your product or service. This leads to a shared value that consumers believe they hold in common with your business brand.
If you’re searching for BPO companies, you might be wondering on how they measure the customer experience.
Net Promoter Score: Key Indicator of Customer Experience
The Net Promoter Score (NPS) has emerged as the industry standard for evaluating the customers’ experience and gauge in measuring their loyalty. Fred Reichheld of Bain & Co in collaboration with Satmetrix Systems Inc. has developed this metric ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services.
This methodology is based on an 11-point scale (0 to 10) and utilizes a customer survey. It measures customer loyalty by asking clients the ultimate question — “How likely is it that you would recommend (company/product/service) to a friend or colleague?”
The NPS is calculated as the difference between the percentage of Promoters and Detractors.
The result categorizes customers into three groups, namely: Promoters (scored 9 or 10), Passives (scored 7 or 8), and Detractors (scored 0-6).
According to Reichheld, the high performing organizations are situated between the average NPS standard of +50 and +80. These values may vary depending on the specific industry and country.
How Significant is the Net Promoter Score for your business?
The Net Promoter Score offers you a straightforward metric that can be helpful in motivating your organization to provide the best customer experience possible. Its main goal is to transform your unimpressed customers to become your future promoters.
The NPS can help you determine the current state of your customer experience and opens the door to a wealth of data that can be used to develop strategies that deepen customer loyalty and fuel business growth.
Getting a high NPS is indicative of a healthy business, while a low NPS may be viewed as an early warning to have a deeper evaluation of your customer satisfaction performance and brand awareness. Establishing a strong commitment to customer experience therefore involves a company-wide effort.
Looking for an Expert Outsourcing Partner?
It is imperative for the company leadership to seek out the root cause behind your NPS data and to adapt positive changes accordingly. The right outsourced partner can provide well-defined and measurable procedures that can help you in delivering the best customer experience.
Infinit-O Global is a trusted strategic partner to global organizations. We offer omnichannel integrated solutions that can empower you to substantially reduce operational costs and improve profit margins. Simply put, we help businesses to scale more efficiently and get to market faster. Our flexibility, experience, and dedication to quality make outsourcing simple and predictable.
Our client testimonials attest to our dedication to the growth and success of our business partners. We constantly strive to delight our clients as seen through our positive Net Promoter Scores, which are well above industry averages. If you’re searching for a partner who can meet your customer experience expectations and scale with your business, feel free to contact us.