I don’t think you can actually open a newspaper (if you still partake in this archaic ritual), check your email or browse the Twitterverse without hearing about a new data breach or the latest phone scam and just how much money fraudsters are running off with. Maybe I’ve chosen the wrong career.
Last Wednesday I was trying to look for a specific slide in one of the many PowerPoint presentations I have on my laptop, and kept stumbling across new presentations that I had completely forgotten I had there…well, there are tactics that I developed in the past years on how to organize my documents better, however I still from time to time get lost and frustrated when I can’t find what I am looking for, although I’m sure I have it there… somewhere...
Customer loyalty is the holy grail of every company, large and small. It’s what allows a business to grow and secure its future. But customer loyalty has become increasingly elusive in an age where your closest competitor is just a mouse click away. Much of the advice in this week’s CX Buzz focuses on how to prompt customer loyalty. The funny thing is, much of it is equally applicable to life’s other relationships: from giving people heightened positive experiences, to keeping your promises, to remembering birthdays. Read on for a plethora of best practices that will hopefully keep you and your customers in a happy long-term relationship.
Doing well by doing good. Some marketers would dismiss the notion as wishy-washy. But in today’s era of customer engagement, a company that is perceived as treating employees well and caring about social issues is much more likely to have loyal customers. And loyalty is vital: a 2% increase in customer retention has the same effect as decreasing costs by 10%. Although customers these days are less loyal than ever (witness the rapid downfall of Nokia), they will develop an intense loyalty to up to five brands that they feel emotionally attached to. Often these brands have a well-publicized social responsibility program: e.g. Ben & Jerry’s or Lululemon. In other words, doing good helps your company do well.
Is it possible to measure something as seemingly subjective as customer experience? In this week’s CX Buzz, several authors argue that you can and should. Because customer experience has real, tangible effects on the bottom line, you must implement benchmarks and processes to ensure you are on the right track. One way is to simply ask your customers, through Voice of the Customer programs. Another way is to measure the non-resolution rate, as Amazon does. Whatever benchmarks you adopt, it is important to make consistent progress, one step at a time.
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Many organizations have a VoC program that measures Customer Satisfaction or Net Promoter Score, and those organizations that listen and act on the voice of their customers often see great improvement in these KPI’s. I would expect to see a movement of between 10 to 20 points in these KPI’s in the first year of a fully functioning VoC program. Yes, this is a typical improvement I see or a target I set with my customers in Year 1.
Your peers are using compensation and commission technology to crunch the numbers and guide growth.
When your organization first rolled out incentive, compensation and commission technology it produced a burst of value. Over-payments all but disappeared. You modeled plans with greater agility and precision. But over time, the marginal benefit has declined—the ROI hit a plateau.
Did you know that 98 percent of CX professionals agree that it’s a great profession to be in? That’s an interesting tidbit I learned this past CX Day. Personally, I’m not surprised. When you spend your days figuring out how to make customers happy, the positive karma has a way of rubbing off.
Call it karma, just desserts or whatever goes around comes around, but companies that treat their customers well, will see benefits to the bottom line. This is the common thread in this week’s picks for CX Buzz of the Week. As Jon Picoult of Watermark Consulting puts it: “It’s not a perfect correlation. There are plenty of instances where you have companies in monopolistic industries that turn profits for awhile, even though they don’t deliver the best experience.
They say it’s never a good idea to compare yourself to others. Except in business, that is. Every CEO worth their salt must be familiar with the market and know their competitive advantage. In today’s “age of the customer,” that advantage is knowing your customer and delivering the best possible customer experience. And in order to do that, you need to know what your competitors are doing.