3 Business Reasons to Care About CX
CX is not a cost — it's an investment with a measurable return. Companies that put the customer at the center, generate higher revenue, build loyalty and compete effectively in the omnichannel world. Learn three tough business arguments that will convince any CEO to invest in the customer experience.
The fact is that CX is a business success where both the company and the customer win. That is why it has become a business imperative and a competitive advantage. However, it is not easy for everyone to sell CX value... However, there are countless business reasons to care about experiences. Let's take a look at three: profitable growth, customer expectations, and omnichannel realities.
1. Profitable growth
What does every CEO want the most? Revenue. Where does CX come in? Customers who consistently enjoy positive brand experiences tend to buy more and buy more often, spend more when buying, cost less, recommend and forgive mistakes. Sounds like a beneficial relationship.
Consider this: The Temkin Group found that even moderate CX growth generates an average revenue increase of $823 million over three years for a company with annual revenue of $1 billion. Conversely, a company can be successful because of poor customer experiences. According to SDL, for every failed CX, brands lose a potential 65% of revenue per customer in the following year. This is a difficult reality because customers today have high expectations.
2. Customer Expectations
nearly 80% of consumers In the US, it says they expect brands to “understand and care about me” before consumers consider making a purchase, according to Wunderman's “Wantedness” study. The study also found that 56% of consumers feels more loyal to a brand that shows a deep understanding of their priorities and preferences. Meeting the needs of customers — in a business sense — is worth the time and effort.
“Fully engaged” customers—those with strong brand attachments that you might consider brand ambassadors—ensure bonus of 23% in relation to the average customer in the share of profitability and in revenue.
3. Omnichannel
One of the toughest customer expectations: they expect to do business with you when and where they want and on their terms. Technology gives them a platform to realize their desires. You just have to keep up. However, remember that customers do not care about processes, channels, or technological challenges. They only care about getting what they want, when they want, quickly and easily and this applies to B2B and B2C.
Research by the McKinsey Global Institute shows that 50% of customer interactions take place during a multi-channel, multi-sensory journey. The award is given to companies that can deliver compelling omnichannel experiences: Omnichannel customers have a 30% higher revenue value compared to single-channel customers.
Source: https://smartercx.com/3-business-reasons-to-care-about-cx/
