3 Ways to Increase Revenue with Customer Experience Improvement

Copyright © 2014. Medallia Inc. 1

3 Ways To

with Customer Experience

Improvement

INCREASE REVENUE

As presented by Medallia

http://www.medallia.com/


Did you know? Forrester estimates that the total annual impact of customer experience across industries is over

$6.8 billion …and that’s just in the U.S. alone.

Source: Forrester, The Business of Impact Of Customer Experience


How? Forrester links this massive revenue opportunity to the the ability of great customer experiences to:

•  drive customer retention

•  unlock a larger share of wallet, and

•  drive word-of-mouth referrals


One way to start thinking about linking customer experiences to revenue is something we like to call…

EXPEREINCE ECONOMICS ex.pe.ri.ence ec.o.nom.ics (noun)

The study of the linkage between customer experience and its financial impact.


Cute concept, but how can you calculate the link between customer experience and revenue? How much of that $6.8 billion opportunity can you bring to your company’s bottom line?


Here are three key ways to drive revenue through Customer Experience:

1.  Painpoint Reduction

2.  Closing the Loop

3.  Mobilized Organization


Painpoint Anywhere in a customer’s journey that consistently causes friction and frustration.

1 1 Painpoint Reduction


1.  Customer Satisfaction And Churn Painpoints can have a broad impact on total customer satisfaction, ultimately creating more churn, and loss of revenue.

2.  Cost Of Support

Customers in Pain are more expensive; they need more support. 3.  Cost Of Attracting New Business

It’s more expensive to attract new business than retain old business.


Closing the loop in 2013 gave them… •  $2 BILLION increase in transaction

volume thanks to painpoint reduction •  +8 NPS increase in customer service


Closing the loop Anything you can do to engage a customer around the feedback they give you – both positive and negative.

2 2 Closing the Loop


1.  Customer Recovery Customers who have experienced problems often open the loop. Closing it is a great way to rescue them.

2.  The Lifetime Value of Customers

Closing the loop with happy customers can make them even more valuable, both in terms of their spend and the referrals they bring.

3.  Employee Engagement and Empowerment

Allowing employees to close the loop puts their roles in the context of the customer and creates empathy.


Their “one version of truth initiative” to close the loop with their customers significantly reduced churn through improving their Net Promoter Score…


Mobilized Organization An organization whose employees are engaged with the company’s mission, with the customers, and their feedback,

3 3 Mobilized

Organization


Want to find out how Choice Hotels International mobilized their organization to gain an additional $18 million in incremental revenue?

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