Is it Profitable to Improve Customer Experience in Your Business?

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When you have a business, it is very clear that making your customers happy is a key factor to consider in order to make it profitable. There is no successful company whose long-term goals don’t include improving their service or customer experience. However, the impact that all these efforts have on business results is not that clear.

Let’s start by introducing the so-called economics of experience, which allow us to correlate the level of customer satisfaction with some of the business results. There is a positive correlation between economics and the level of customer experience: the greater the satisfaction, the more customers recommend your business and the more products they buy. They are also willing to pay a higher price because they prefer your company. Then, the question is clear: do you already have this measured in your company? Do your business decisions to improve service leverage on these indicators? Do your workers understand that “customer service” is an economic asset that impacts on the results of your business?

Companies that focus on the customer are more efficient and therefore more profitable because providing exceptional customer service is crucial to building customer loyalty and growing your business. This is why it is essential to have the right tools that respond to the specific needs of your customer service. For example, a call centre software will allow you to resolve all types of customer incidents proactively because it allows you to open paths that will attract public that is dubious when it comes to providing loyalty. Any company that has a call center software in the cloud to receive calls will improve the quality of the service that they offer because it will be able to attend quickly and individually each customer anywhere, and this will improve the brand’s image.

Once your company has the best tools working to help keeping customers satisfied, you can correlate the level of customer satisfaction with some of the business results by measuring some factors: 

  • Recommendation: the level of customers who come to our company for a positive recommendation from a family member or friend.
  • Permanence: Time of duration of a client acquiring or consuming the services of the company.
  • Premium Price: Number of customers willing to pay a higher percentage of price for an improvement in the Experience.
  • Share of Wallet: Level of participation of your products of your category or industry consumed by your customers.
  • Preference: Number of new customers who prefer you in search of a positive experience.

It is understandable that many companies have doubts at the time of making the decisions to include software and techniques to improve customer service, since sometimes they expect an immediate ROI (Return Of Investment) and this is not how it works. But what if we don’t do anything? What if we don’t invest in improving the service and having good channels of attention? How much do you stop earning from the clients who don’t invest in you because of a poor customer experience? How much do you lose from the clients who leave or cancel their services? Will it be sustainable to continue being transactional without surprising our clients? That is why it is preferable to include within our strategy the improvement of Customer Experience, rather than face the risk of losing our leadership and positioning and get nothing in return, instead of getting an slow ROI.

In order to know what to invest in when your objective is to differentiate yourself thanks to the exceptional experience of your clients, you need to know what works best for them. To make sure that the changes that you are introducing in your company to improve customer service are satisfying your customers, you need to pay attention to these factors:

  • Recidivism: Customers well served when we solve them in first contact do not need to contact us again.
  • Complaint Volume: Clearly if the service is good, we will have fewer complaints. 
  • Cost of Attention: The more your service improves, the lower the investment in channels of attention -such as call centers, offices, web, consultants, and so on- is.
  • Self attention: a good service helps the clients to solve their problems themselves, an unsatisfied client always wants to “talk to the Manager”.
  • Digital adoption: Now that we’re all talking about Digital Transformation, are you clear that those who use your customer service via call centre software are satisfied with the attention provided? Just like in the previous case an unsatisfied customer always wants to “talk to someone real”.
  • Repurchase: willing customers who purchase new services or products or renew their contracts based on experience with the company.
  • Attention Time: When we design the experience and make it “easy” for the client the solution times decrease and that is less expense for the company.