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Stop customers from walking our the door and strengthen the bottom line

13th Apr 2016
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How would you like to lower your customer churn rate? Want to increase customer retention? Or maybe increase your revenues? Robert Zoch at NICE Systems says "Why choose?" In this new guest blog he explain how they go hand in hand, as keeping customers from walking out that door can go a long way towards strengthening that bottom line.

It is with this simple truth in mind that forward-thinking customer experience (CX) programs include each of these key components:

  • Leveraging CX insights to identify what’s making customers happy or unhappy
  • Understanding best practices to establish long-term CX strategy
  • Building the program around a nucleus of comprehensive Voice of the Customer (VOC) technology
  • Determining the many ways said technology delivers return on investment (ROI)

With regard to ROI, common sense tells you a happy customer is less likely to leave for a competitor—but how to quantify that relationship? For one organisation, we correlated a Customer Satisfaction score to customer churn; unsurprisingly, unhappy customers were considerably more likely to leave than happy folks were:

​ Graph1 

Customers who were “Satisfied” or “Delighted” after contacting Customer Care
tend to churn 3.2 times less than “Very dissatisfied” customers.

Comprehensive VOC technology offers CX programs a mechanism for pinpointing, in real time, customers who are at risk of leaving, enabling the department to focus on customer recovery activity, thus preventing such churn. And the ROI of that? Well:

Graph2

Using the average churn rates found for each segment of customer satisfaction
enables building a model to calculate the impact of moving the satisfaction
needle on churn, and therefore on retained revenue.

In this particular example, the potential saved revenue ran into the millions of dollars annually. On average, organisations that implement VOC technology and adopt corresponding best practices observe an ROI of six or seven times their VOC investment within one year

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