A consumer-facing business often faces a dilemma about whether to improve on customer experience management or cope up with its own rising expectation. The glut of choice coaxes enterprises into self-indulgement, ultimately missing the point. While contemporaries continue to garner the benefits of listening to customer’s hidden feedback through key customer experience metrics, you fail to retain the most loyal customers.
“62% of enterprises see customer experience as a key differentiator”, Deloitte announced last year. Also, with omnichannel strategies to help the corporation retain 89% of its customers, businesses will now be redirecting a sumptuous amount of investment towards innovation relevant to customer experience.
Rendering exceptional customer service not only improves customer retention but also influences customer behavior. Leveraging quality customer experience guarantees customer referrals and impactful word of mouth but can improving on customer experience help enterprises improve or double their revenue?
Can optimizing key metrics of customer experience lead to an increase in revenue? Can businesses take the risk to shift their focus from the price war to improving customer experience and win in the long run?
Temkin Group recently made it public in a report that “focusing on CX improvement can double the revenue within 3 years”. It was also discovered through a study that “73% of buyers label customer experience as the biggest decision influencer when it comes to buying”.
To cultivate a unique customer experience that can drive sales and generate better revenues, it is indispensable to scrutinize processes and discover avenues that require improvement.
Key customer experience metrics that can prove to be beneficial are:
- Net Promoter Score
- Customer Satisfaction
- Customer Effort Score
Also, two other key customer experience metrics that can be focussed on to double or improve the revenue are:
- Customer Journey
- Churn Rate
Net Promoter Score
A mathematical classification of customer’s brand loyalty based on input taken from customers on one single question. Net Promoter Score is a key customer experience metrics because it assists businesses in understanding how likely their customers are to promote them. An immaculate NPS means, customers are going to bring in more referrals whereas a low NPS means customers will act as detractors.
How is NPS calculated?
Subtracting Percentage of Detractors from Percentage of Promoters will give you Net Promoter Score. Where the Percentage of Detractor is the percentage of people who answered NPS Survey question in-between 0-6 while the Percentage of Promoters is the percentage of people who answered NPS Survey question either 9 or 10.