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.
But over time, it certainly appears there is long-term value in delivering a great experience and it’s rewarded by both consumers and investors.” Of course, don’t take our authors’ word for it. Check out the hard data they present to back up their claims: over the long term, exceptional customer experience pays off.
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The ROI of Customer Experience: Who Cares? [dmnews.com]
What's the ROI of customer experience? The author, Bruce Temkin, says he gets asked that question all the time. People want to know whether they will get better business results if they invest in customer experience as opposed to something else.
But, argues Temkin, asking what the ROI is for customer experience is like asking what's the ROI of software for Saleforce.com, the Web for Amazon, cars for General Motors, or tractors for John Deere? Customer experience is an integral component of every organization that has customers (i.e. all of them).
Nevertheless, Temkin Group published a report, “ROI of Customer Experience, 2014,” to try to quantify the answer. He found that companies with excellent customer experiences have significantly higher loyalty than other companies with poor customer experience. Want proof? Read more.
Infographic: How can you become a customer experience master? [mycustomer.com]
This article contains new research from The CMO Council that shows just how important customer experience is to business -- and how challenged organizations are to achieve it.
Did you know that 73% of marketers believe that customer centricity is critical to market success? Yet only 14% feel that customer centricity is at a high level within their own organization.
This Infographic is worth reading for many sharp insights and statistics from the point of view of professional marketers.
The road to hellish Customer Experience is paved with careless implementations of technology [cx-iq.com]
The author starts by describing a customer experience from hell, the kind we’ve all endured but would rather not remember: He tried to book a doctor’s appointment online but kept getting interrupted by annoying pop-up surveys. Then the program could not book the appointment but gave him a number to call. The number turned out to be wrong. When he finally reached a human being, they turned out to be anything but knowledgeable and helpful.
The author writes that he’s not surprised to get this kind of treatment from the medical establishment or government, but even honest businesses have implemented their technology in this way.
The author stresses that technology is not enough. It will only be implemented properly if the will and awareness of customer needs is there. As the author puts it, “the way you engage your customers speaks so loudly, they can’t even hear your marketing messages.”
Want happy customers? Service is the key [today.com]
Companies that provide a great shopping experience tend to be rewarded over the long-term by their customers and investors, according to a new study by Watermark Consulting.
“It’s not a perfect correlation,” said Jon Picoult, founder of Watermark Consulting. “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. But over time, it certainly appears there is long-term value in delivering a great experience and it’s rewarded by both consumers and investors.”
Watermark provides the statistics to back up its claim. The study looked at the cumulative total stock returns for two model portfolios of publicly traded companies –-the top 10 “leaders” for customer service and the bottom 10 “laggards” –- based on the annual Customer Experience Index ranking by Forrester Research. The study found that the leaders outperformed the market, showing a total return that was 26 points higher than the S&P 500 index. Meanwhile, the laggards actually posted a negative return of 2.5 percent during the same period, even as the market rose sharply.
Improve the Customer Experience by Remembering we’re All Human [business2community.com]
“Seventy-six percent of all people who read blogs are people.” That’s the tongue-in-cheek Tim Washer quote that opens this article by Jen Cohen Crompton. The larger point she wants to make is that what often gets lost in a lot of business communications is that the person you’re speaking to is human. We’re so busy using acronyms like B2C or B2B that we lose sight of the fact that it all boils down to P2P.
Crompton says this message is especially apt for wholesalers. Because they are not directly customer facing, they don’t always place much emphasis on customer experience. That is a mistake, in her view. By learning about behavior, redefining the most valuable customers, increasing visibility across the supply chain, and bringing the business to customers, wholesalers can begin to integrate customer experience lessons into their business processes.
We hope you enjoyed our picks and bookmarked a few of these articles for future reference. Please don’t forget to share the buzz with other CX professionals.
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