Are you ready to give customers what they want from you? This blog is the first of a four-part series that focuses on this question. Throughout the series, we will explore the importance of the following topics:
Make CX Easy
Here at The Daniel Group, we pride ourselves on supporting our clients in making CX as easy as possible. We do this by gathering information by surveying our clients’ customers. Our analysts ask customers what they felt went well in their experience doing business with our clients, and then we ask them about aspects that could use improvement. They capture the verbatim comments and apply topic tags for categorization. After analyzing some of the results from our ExperienceConnect clients, I discovered the impact of the ease of doing business. Allow me to explain.
Making it easy for customers to do business with your company dramatically impacts the NPS (Net Promoter Score)®. When customers mention that it is easy to do business with a company, the NPS goes up by 7.5 points. Conversely, if customers say that doing business with a company is rather difficult, the NPS® is 53 points lower for the company. Of all the tags we use to categorize comments, “ease of doing business” has the most significant impact on NPS®. Thus, it is clear that making it as easy as possible for customers is a proven way to create a better customer experience. It is time to assess the ease of doing business with your company.
What can you do to make CX easy for your customers?
Here are a few ideas:
Look at the interaction process from the perspective of your customers.
Ask your customers for feedback on how easy or difficult it is to do business with your company. Given the importance customers are attaching to a better customer experience, they will most likely be eager to share their perspectives. If customers share feedback that is less than positive, don’t get upset. Constructive criticism provides a unique opportunity to improve your business. Making changes to operations based on customer feedback proves to them that they are valued, which is an excellent way to improve CX.
Practice mapping out the customer journey.
Consider what happens to, or for, the customer at the three major segments of a transaction:
BEFORE THE TRANSACTION: The transaction starts with the customer looking for a solution to a need.
Anticipate the needs of your customers. A customer may need a product, service to an existing product, a part, a rental, or just information.
List the major information needs customers have when beginning a transaction. Rate how easy it is to get this material. Is this information listed on your website? If not, perhaps it should be. Ensure that it is easy to access information that customers are likely to seek.
Customers appreciate communication. Don’t overlook the ease with which a customer can reach someone at your establishment by phone or email. Data shows that when customers mention a company’s communication as something that needs improvement, the impact on NPS is a negative 42 points.
DURING THE TRANSACTION: Customers want to know the status of their transaction.
Continued communication is of the utmost importance. In the B2B marketplace, much of the customer journey concerns the status of a parts order, a repair, or when they can expect a technician to arrive to complete a job. Some companies implement technology to share this information. For example, I own an RV. When I take it to the dealer for service, I receive an email or text message when it is ready. I can then arrange for a pickup when my schedule allows. This strategy is very convenient for customers and companies alike.
AFTER THE TRANSACTION: Ensure invoices are readily accessible and easy for customers to read.
Providing clear, concise, and on time invoices help to make CX that much easier. An invoice that is difficult to understand, or is delivered late, is not something that customers appreciate. Invoice line items that are not clear prompt additional communications regarding invoice inaccuracies. Our research shows that invoice inaccuracy causes the NPS® to take a 45 point hit!
Given the time and pace at which most people operate today, making something easier to accomplish has significant value. Does the reduction of required effort to do business with a company indicate more loyal customers? According to Gartner, it does. Top-performing, low-effort companies are reported to have an NPS® score 65 points higher than companies that require more effort from their customers. It is a known fact that an increase in loyal customers equates to more profit.
Bain & Company and Harvard Business school have reported: “increasing customer retention rates by 5% increases profits by 25% to 95%.” These figures further illustrate the importance of providing ease in doing business with customers, and show that no company can afford to ignore these business practices.
What has worked in your company to make CX easy? We’d love to share your insights with our clients. Again, this is the first blog of a four-part series, Give Your Customers What They Want. In April, we will explore CX Communication (Are you talking to your customers?) and how communication affects NPS®. Good communication is the bridge between confusion and clarity for your customers.
Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.