Invest in customer experience, change ROI to ROE
Posted: Tue Jan 07, 2025 5:36 am
There is no doubt that we are in a period of change, the person is once again at the centre. We are in the era of emotions and experiences. An era in which customer experience and satisfaction are very important.
Decisions are made from the emotional brain and are the key to making our brand profitable. Aspects such as quality are important, but what really gives good results is the relationship we establish with our customers. Gaining customer loyalty improves the results of our business. A loyal customer stays with us, buying our products or services continuously and also tends to increase purchases.
Loyalty is achieved by generating impactful and surprising customer experiences that generate higher sales and recommendations. No one who feels ignored, poorly served or poorly treated will recommend a company to their contacts, nor will they talk about their pleasant experiences.
According to a Forrester study , companies invest 80% in attracting new customers and 20% in retaining them. A greater investment is required in attracting new customers than in establishing relationships and providing experiences that bring differentiation and connection.
The challenge is to get customers who are loyal to our brand and be their first choice for a new purchase and who recommend us. Investing in getting prosumers is the true profitability of the customer experience.
Customer experience impacts a business's profitability. When there is morocco phone number increase in Net Promoter Score (NPS), which measures the likelihood of customers to recommend the brand because they are satisfied, this directly leads to an increase in profits and revenue.
ROI (Return on Investment, R) measures the return or profitability of a capital investment, and why not measure business profitability through Customer Experience, ROE?
Companies that are leaders in customer experience have a profitability of over 22%, while companies with the worst customer experience rating have a 46% drop in profitability (according to the study carried out by Forester).
It's a good time to systematize how to calculate the return on investment of customer experience. Bruce Tekimin developed five steps to measure the ROI of Customer Experience:
Establish basic customer experience indicators, such as the Net Promoter Score (NPS).
Determine loyalty objectives: increase in additional sales, number of recommendations or repeat purchases…
Segment customers based on their brand affinity and launch personalized messages, measure their engagement, consumer expectations and establish loyalty tactics.
Analyze the relationship between customer experience and customer loyalty.
Calculate the value of that change, in terms of loyalty, obtained from the consumer experience.
Consider seeking business profitability through Customer Experience, recovering customers, reducing acquisition costs and analyzing the experience you are providing to your customers and the touchpoints.
Decisions are made from the emotional brain and are the key to making our brand profitable. Aspects such as quality are important, but what really gives good results is the relationship we establish with our customers. Gaining customer loyalty improves the results of our business. A loyal customer stays with us, buying our products or services continuously and also tends to increase purchases.
Loyalty is achieved by generating impactful and surprising customer experiences that generate higher sales and recommendations. No one who feels ignored, poorly served or poorly treated will recommend a company to their contacts, nor will they talk about their pleasant experiences.
According to a Forrester study , companies invest 80% in attracting new customers and 20% in retaining them. A greater investment is required in attracting new customers than in establishing relationships and providing experiences that bring differentiation and connection.
The challenge is to get customers who are loyal to our brand and be their first choice for a new purchase and who recommend us. Investing in getting prosumers is the true profitability of the customer experience.
Customer experience impacts a business's profitability. When there is morocco phone number increase in Net Promoter Score (NPS), which measures the likelihood of customers to recommend the brand because they are satisfied, this directly leads to an increase in profits and revenue.
ROI (Return on Investment, R) measures the return or profitability of a capital investment, and why not measure business profitability through Customer Experience, ROE?
Companies that are leaders in customer experience have a profitability of over 22%, while companies with the worst customer experience rating have a 46% drop in profitability (according to the study carried out by Forester).
It's a good time to systematize how to calculate the return on investment of customer experience. Bruce Tekimin developed five steps to measure the ROI of Customer Experience:
Establish basic customer experience indicators, such as the Net Promoter Score (NPS).
Determine loyalty objectives: increase in additional sales, number of recommendations or repeat purchases…
Segment customers based on their brand affinity and launch personalized messages, measure their engagement, consumer expectations and establish loyalty tactics.
Analyze the relationship between customer experience and customer loyalty.
Calculate the value of that change, in terms of loyalty, obtained from the consumer experience.
Consider seeking business profitability through Customer Experience, recovering customers, reducing acquisition costs and analyzing the experience you are providing to your customers and the touchpoints.