Top 7 tips to boost the ROI of your customer experience
Customer experience is the new battleground for winning customer loyalty, generating additional revenue, retaining talent, and ensuring market share growth. It is unquestionable that there’s a positive return on customer experience investment.
If you improve your business’s customer experience, you can expect to potentially double your revenue within 36 months. And you can expect as much as an 80% increase in revenue for businesses that focus on improving customer experience.
To achieve this, organisations must deploy actionable programs to improve their customer experience ROI (Return on Investment). Our experts provide 7 tips and tricks on how to improve the ROI of your customer experience.
1. Customer experience is key
Customer experience is the overall perception your customers have about your brand based upon many interactions. It includes both intended messages such as carefully crafted emails, for example, and unintended messages like keeping callers on a long hold, for instance.
In today’s “customer first” world, omnichannel marketing is a key influencer in a good customer experience. Shoppers want to purchase effortlessly and seamlessly across every platform; they want to choose where they shop, how they shop, and how they want it delivered. And, most importantly, they expect excellence at all touchpoints.
2. Designing a seamless customer experience to drive sales
The experience of the customer has a significant impact on a retailer’s bottom line. For example, in the US, even when people love a company or product, 59% will walk away after several bad experiences, and 17% will walk away after just one bad experience. And 86% of customers say that they are ready to pay more if it means getting a better customer experience. In fact, they are willing to pay as much as 13% to 18% more for a product or service, provided they have an outstanding customer experience.
There’s often a war of words on which is more important: creating a frictionless experience or a memorable one. Target is a good example of a frictionless experience with omnichannel shopping and shipping options, whereas IKEA, the Nike store, and Disney World are good examples of an unforgettable experience. Startling new research published this year in the Harvard Business Review reveals that companies that focus on frictionless experiences vs. memorable ones had a higher market share; brands that focus on creating memorable experiences have a lower market share with little appreciable growth above a 15% market share cap.
3. Customer experience must be a company-wide initiative
For many companies, customer experience falls under the purview of the Chief Marketing Officer. In a new study on digital experience, 52% of respondents report that their CMOs drive the customer experience strategy. However, a deeper dive into research shows that it needs to be a company-wide effort spearheaded by the CMO and/or the CIO (Chief Information Officer.) Companies invested in strong digital growth have created new positions, such as the CIO of Marketing, dedicated to improving the customer experience by exceeding customer expectations.
4. Happy employees = happy customers
Often overlooked when it comes to the customer experience is the role it plays in employee experience. There’s a direct correlation between customer retention and employee retention. Happy employees feel more engaged, stay longer, and over-deliver on customer service. As the late Tony Hsieh, former CEO of Zappos, once said, “Customer service shouldn’t just be a department, it should be the entire company.” Not surprisingly, companies with a highly engaged workforce report 20% higher sales.
5. Personalisation is paramount in driving sales
Competing in the retail sector demands investing in digital tools to understand the customer journey; using that data for personalisation is key. Recent research revealed that 56% of top professionals involved in customer experience strive to improve the personalization of customer communication. And 43% of marketers report that they will invest in more personalization in 2021. The emphasis of the spending will be on hyper-targeted content and messaging.
6. Click and Collect in locker (or BOPIL) is key to boosting customer satisfaction
While ‘buy online pick up in store’, aka ‘click and collect’ is now mainstream – with 90% of stores expected to offer the service in 2021 – it’s the savvy retailers who are embracing Buy Online, Pick-Up in Locker (BOPIL). BOPIL is one of several hot omnichannel trends because it offers an additional (and cheaper) delivery option for the customer.
Our clients indicate that the order pick-up experience with lockers significantly increases their customer satisfaction. Since it typically takes less than 30 seconds to retrieve a package via BOPIL, customers rate their shopping experience higher than other order pick-up methods (such as curbside or traditional BOPIS). Further, research shows that customers are four times more likely to purchase again if the perceived wait time is less than two minutes. Plus, 85% of customers say they buy additional items in-store when picking up their orders.
7. Improving your Net Promoter Score (NPS)
The Net Promoter Score is often considered one of the most important in evaluating the customer experience. It measures brand/company loyalty, customer satisfaction, and overall customer experience by asking one simple question: how likely are you to recommend our business to a friend, family member, or coworker?
Parcel Pending by Quadient clients who install intelligent parcel lockers have seen their Likely to Recommend (LTR) scores jump an average of 30 percentage points. Additionally, one client indicated that lockers are their highest-rated order pick-up method by a margin of nearly 10% (compared to curbside and standard BOPIS).
Customers have fallen in love with intelligent lockers because they can pick up their orders safely and securely on their schedule without having to wait for assistance from a store associate. One retailer using Parcel Pending lockers indicated that their customers are two times more likely to pick up an order from a store with lockers as opposed to a non-locker store.
Parcel Pending by Quadient and you
Investing in the improvement of your customer experience is the secret weapon to winning over customers and employees as well as increasing loyalty and sale. With intelligent lockers having demonstrated effectiveness in providing a positive return on your CX investment, they are the solution your retail business needs on the battlefield for customer loyalty.
Contact us today to find out how we will improve your customer experience while lowering costs.