Jan 23, 2023
Customer Experience Can Lead to Cost-Reduction & Greater Revenue
By Jared Karson
All brands and companies, big and small, are continuously looking for ways to continually cut costs, while at the same time, drive greater profits. In 2023, cost-reduction will prove more critical than in recent years as a global recession looms and by all accounts is extremely “likely” to happen. With this grim global economic forecast, it is vital for brands to invest in customer experience that will not only improve costs but also simultaneously provide customers with meaningful and thoughtful customer experience (CX) interactions.
According to McKinsey and Company “brands that can improve the customer journey see revenues increase as much as 10 to 15 percent while also lowering the cost to serve 15 to 20 percent”. Beyond this statistic, a report from the Economist’s Intelligence Unit found that 64% of companies with a customer-focused CEO believe they are “more profitable than their competitors”.
This data is proof of something we see day in and day out at Horatio – quality CX leads to not only companies generating revenue but also cutting costs across the board. By trusting a dedicated, outsourced team of the most talented CX agents in the industry, fast-growing companies are allowed to focus on what they do best, thus leading to less internal churn for our clients and higher satisfaction across the board – from our clients to their customers.
While the ROI of CX is different for each unique brand it is true that companies that invest in CX will see gains within three years of investing in quality CX programs. According to the Temken Experience Ratings (TxR), Companies that earn $1 billion a year will see an average gain of $700 million within three years of investing in customer experience.
Clearly, it behooves brands to seek a qualified team of experts such as Horatio to implement their CX goals. When thinking about getting started, here are three other tips to keep in mind for delivering high-impact CX that simultaneously leads to cost-reduction for your team:
Identify your Critical CX Needs
Customer journeys are different and unique for each brand. That said, make sure your CX provider or team has spent enough time delving into the root issues of what makes your customers tick when embarking on a plan. Is 24-hour support a bigger priority than having multiple CX touchpoints? These types of questions are all helpful when coming up with a CX plan, sticking to a budget and then looking at the bottom line.
Turn your Mess into a Message (Examine the Complaints)
Qualified CX agents will not only solve customer issues, but will in turn, take these complaints or negative situations, to then improve CX across the board. Quality CX is both efficient but also thoughtful. Thoughtful CX entails lots of reflection and adjusting the sails of your CX journey accordingly. In essence, upon reflection, the number of customer complaints should decrease, and revenue should increase if your team is able to figure out the root cause of why problems arise.
Efficiency is King
A 2018 survey found that 77% of consumers reported that “inefficient customer experiences detract from their quality of life.” This data is statistically significant as it shows not only will customer satisfaction result in repeat customer experiences, but brands have the ability to make or break a consumer’s mood based on their CX interactions. CX is powerful and the heartbeat of a brand. Therefore, make sure your team has multiple processes to be able to deal with complaints in a timely and effective manner. At Horatio, we employ a combination of today’s latest technologies and high-touch human interactions with our clients’ customers to make sure we respect each customer’s time and overall satisfaction.