Hi Team,

Shoutout to those who shared my contact centre stats from last week. I really do appreciate the support and am glad that this newsletter provides you with some value!

This week, I had an opportunity to speak with an organisation who have recently realised that they can no longer compete on price.

As such, they were looking to build a business case to demonstrate why their new differentiator should be #customerexperience.

I was the lucky person who got to build their business case, and thought I’d share the foundations of my arguments with you all.

To summarise my findings in two sentences -

#CX will not be taken seriously if the only measure of success is NPS.

To get a seat at the table, you need to be demonstrating the tangible impact that #CX has on the Balance Sheet or P&L Statement.

With that in mind, I did my best to dig out examples where #CX has been aligned to better, or worse business outcomes. My findings are below 👇

#CX As A Differentiator - The Impact Of Getting It Right / Wrong 💰

IF YOU DELIVER A GREAT CUSTOMER EXPERIENCE … ✅

#1 - Higher Lifetime Value

An NPS Promoter has a customer lifetime value that’s 600%-1400% higher than a Detractor (Bain & Company)

#2 - Stronger Revenue Growth

CX leaders achieved more than double the revenue growth of CX laggards between 2016 and 2021 (McKinsey)

#3 - Repeat Purchases

81% of customers say a positive customer service experience increases the chances of them making another purchase (Zendesk)

#4 - Stronger Stock Market Returns

CX Leaders outperformed the broader S&P500 index, generating a total return that was 108% higher than the S&P 500 Index and 304% higher than that of the CX Laggards … (Watermark Consulting)

#5 - Higher Retention Rates

More than 80% of customers say they would renew with an organisation if their customer service interaction added incremental value to them. Conversely, only 27% of customers said they would renew if the customer service interaction provided no resolution at all (Gartner)

#6 - Greater Share Of Wallet

Customers are shown to spend up to 140% more after a positive experience than customers who report negative interactions (Deloitte)

#7 - Higher Upsell Potential

The probability of selling to an existing customer is 60-70% whilst the probability of selling to a new prospect is only 5-20% (Forbes)

IF YOU DELIVER A POOR CUSTOMER EXPERIENCE … ❌

#8 - Silent Churners

Customers rarely tell you that they're unhappy. Only 4% of unhappy customers actually complain. The rest will silently stop doing business with you … (Mindful)

#9 - Higher Acquisition Costs

It costs 5x more to acquire a new customer, compared to retaining an existing one. There is no use spending loads of money on acquiring new customers if you can’t fix the leaky bucket … (invespcro)

#10 - Higher Switch Rates

92% of customers will completely abandon a company after 2-3 negative interactions (PWC)

52% of customers will switch to a competitor after one poor interaction (Zendesk)

#11 - Lower Lifetime Value

Poor CX leads to 9.5% revenue loss, on average. Research from Qualtrics across 17 different industries shows that just one bad experience is enough to have a negative impact on revenue

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