--By Tripti Sharma--
No matter what story you tell to your customers, make them a part of a successful sales team because happy customers are the biggest advocates of a brand.
Quantifying customer experience is deciding about the worth of customers in terms of cost and gain. Such worth is built upon the lifetime value of a customer. Customers’ purchase or dispose of product or service decision affects company revenue. Imagine a grocery shop where you visit daily to buy some items to fulfill your needs, as a customer it is not a strong brand loyalty rather it exhibits a habitual pattern. There can be many reasons behind customer purchase decision but making them brand loyal will ensure a continuous flow of revenue. Research shows that customers are most satisfied when they get what is expected. Satisfaction does not necessarily mean loyalty. A retail shop that keeps low inventory at its store to avoid the cost associated with holding inventory can face a situation where customers can’t find the item, they came in to buy. Before visiting the same shop in the future, they will probably think twice. The out-of-stock experience will damage revenue and word of mouth.
As per the research which was undertaken by Harvard Business Review, there is a direct link between customer experience and annual revenue increase.
Customer Lifetime Value (CLV) = Annual Revenue per Customer times customer relationship - Cost of customer Acquisition. A high customer acquisition cost (CAC) to CLV can lead to a startup’s early demise.
How to start with?
It all starts with learning about customer journey covering multiple touchpoints that can be managed by different functional areas of organization. It’s said that cost of acquisition is more than retaining existing ones, positive customer engagement means a greater likelihood of higher revenue and happier clients that will lead to client retention, advocacy, enrichment and loyalty driven experience. Before opening its retail store Apple decided to send its store manager to attend the Ritz-Carlton (luxury hotel chain) training to deliver the best possible customer experiences for their customers and stay focused on reducing the customer wait time by simplifying the checkout process with mobile credit card readers. Happy customers will have fewer complaints that can be solved with limited company resources saving on the time and efforts thus ultimately reducing the cost.
What is the key to optimizing revenue from existing customers?
As such there is no key but the simple ways that can be used by companies to generate revenue are by understanding customer’s holistic needs as it will communicate in a way that you understand your customers better than competitors. For example:
It’s rightly said that “Love for customers is the springhead of the cascade of innovations and the river of revenues”.
Looking at your customers as innovative investments will provide a return by enrichment of experience. Companies generally don’t see consumer complaints as an opportunity as a lot of time and energy go in vain but focusing on the worst customer experience can help companies in finding those gaps that can be worked upon for the satisfaction of current and potential customers.
Technology solutions like conversational IVR and Virtual Assistants have been evolved to keep pace with customer expectations, such solutions are not only cost-effective but can also deliver more personalized services and maximize return on investment. Approach each customer with the idea of helping to achieve a goal or to solve a problem and not with the idea of selling a product or services.