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The Breakdown of Investments in Customer Experience Management

More and more companies are waking up to the fact that customer experience is an area demanding substantial investment of time, money and effort in their business. And for good reasons, as these figures reported in leading studies indicate:

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82% of people stopped doing business with a company after a bad experience

Over 79% of people told others about their bad experience, 55% went online to vent their anger, and 66% wanted to discourage others from buying from the company

85% of people agreed to paying more for a better customer service experience

55% are willing to recommend a company for their good experience, above product or price

The report went on to mention that a negative experience in receiving the service was a bigger cause of switching brands than poor quality of the service itself

Clearly, a superior experience means a higher NPS ©, more customer loyalty and an increase in average customer spending – translating to more revenue per customer. In the long run, a superior customer experience would go on to differentiate your brand’s offerings from those of your competitors, affording a significant competitive advantage.
The other part of the question is where the investments need to be made. Successful businesses have since long made investments to improve customer experience in the following ways:

Better Hiring

We discussed how a customer-centric company makes effort to hire customer-centric people as staff. This has the twin benefits of a better service experience for the customers and higher employee job satisfaction, leading to lower employee turnover and a reduction in the costs involved with training and recruitment of new employees.

Strong Customer Loyalty Programs

Rewarding regular patrons will provide a big incentive for your customers to spend more and visit more frequently. It is a known fact that more business from existing customers comes cheaper than attracting new customers.

Reduction of Customer Effort

An old adage says that customer is king. And to make customers feel like royalty, businesses make efforts on the part of their customers. By making their menus/ service areas less cluttered and more amenable to locating products and support staff, they have effectively made efforts which otherwise their customers would have to make every time they made a purchase.


A superior customer experience would entail quick resolution of problems, something that would require fast and seamless transfer of information across the business. It may not suffice if a customer’s feedback is shared once they leave the premises – real-time, on-premise feedback is more valuable in the sense that it allows the business to appease the customer before they leave, eliminating any threat of negative reviews from going online.

While most businesses would be tempted to consider the above as costs, a business focused on improving its customer’s experiences will treat these as investments, and the kinds that pay big dividends.

Learn More about the Customer Experience

Team Zonka

Written by Team Zonka

Nov 20, 2014

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