The customer experience (CX) is the cumulation of each impression a customer has throughout their buyer’s journey. This journey begins when a customer gains awareness of an issue that your business can solve and ends when the customer decides on a solution. Each touchpoint along the way has the potential to drive a customer to promote, recommend, and revisit your business. Improving your business’s overall impression and refining touchpoints requires investment and some creative thinking. When improving CX, simple metrics and monitoring progress ensure you receive a positive return on investment (ROI).
Why CX matters
There is a significant upfront investment in attracting just one customer to your website, storefront, or any component of your business. Setting up a website, engaging in even the most basic marketing, and creating an attractive product or service, are just a few essential elements comprising your investment. However, when customers become regulars, recommend your business, or generate positive content, your ROI increases. Pay special attention when analyzing the particular touchpoints that drew the customer to take action and engage with your business. This stresses the importance of identifying your most productive touchpoints. Thus, understanding and quantifying your ROI allows you to refine existing processes and locate new procurement avenues while taking out some of the guesswork. Check out our guide to improving customer experience and boosting ROI.
When it comes to your CX, every touchpoint is valuable, from the initial point of contact to the sales receipt. How do you know which touchpoints are working to better your ROI? And, which touchpoints are costing you customers? Using data, metrics, and measurements, you can compute the value of your business’s components.
Some CX measurements include the churn rate, customer lifetime value, and the customer satisfaction score. The churn rate represents the percentage of customers that leave your business or cancel services during a period of time. To calculate your churn rate, divide the number of lost customers by the number of customers acquired. The customer lifetime value tells you the total revenue expected from a single account and is used to identify the best customer segment for your business. Lastly, customer satisfaction scores are measured through customer feedback and give a percentage ranging from 0-100% satisfaction with a business.
How to improve cx
Using information collected from metrics, you can craft a baseline understanding of the consumer experience. One of the following steps is to combine your quantitative and qualitative data by looking at customer feedback concerning the metrics you calculated. Tactics you already use for brand management like collecting reviews, monitoring mentions, and engaging in real-time communication will help your understanding of the most influential touchpoints. When it comes to real-time communication, you have the ability to map a customer’s journey. Touchpoints that customers rave about in mentions are likely the most memorable and profitable ones. If customers are consistently noting about a favorite employee, freebie, or ease of process, it is a point of customer delight. Put these touchpoints at the customer’s forefront, either through promotion or increased access to improve ROI. Likewise, if you have a relatively expensive CX touchpoint with a negative or unproven ROI, it may be time to rethink its utility.
Looking to increase ROI and better CX, contact GROWL today!