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:
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:
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