Customer Experience: The Value Driver not to be underestimated
Would your customers recommend you? One of the most straightforward of the 8 Key Value Builder Drivers is Customer Experience.
How would a prospective buyer evaluate your business if they were looking to make an offer? Looking at the overall health of your business, buyers will be assessing more than just your industry and revenue. You can be certain that they will take into account how happy the client base they are inheriting is.
Recent research reinforces this as businesses were most excited about a customer experience when looking at the year ahead for 2018 digital trends. Findings showed that customers were willing to pay more for a better customer experience.
Client Satisfaction can be measured in a number of ways, with the way in which this is approached varying from business to business. Well linked to growing your business, take note of this Value Driver. Research supports this, stating the more a company valued an improving customer experience, the more revenue and growth they experienced.
The Ultimate Question
Dubbed as ‘The Ultimate Question’, you yourself might have taken part in providing a company or service with a rating, The Net Promoter Score. It’s a benchmark to measure customer experience and in turn, help to predict business growth.
“How likely is it that you would recommend our company/product/service to a friend or colleague?”
It works by defining the ratings your respondents provide into 3 categories;
Promoters – The happy customers. Those who rate your product, company, service etc with a 9-10.
Passives – Whilst a score of 7-8 might seem high, these customers are satisfied but also fickle. They’ll be tempted by competitors and not as likely to recommend you.
Detractors – Anyone who has provided a rating of 0-6. You can count these respondents as unhappy customers. They’re the one’s you need to engage and determine the reasons for their response.
The score is calculated by subtracting the percentage of detractors from the percentage of promoters. You’ll also get some useful statistics for use in your marketing. Providing you’re delivering a good customer experience.
Using a metric like this means you know what you need to work on and how your customers perceive your brand. It also helps your workforce get on board, realising the importance of the customer experience and their role within this.
Putting the percentages to use
Both prospective buyers and customers will be reassured by figures which can be trusted as genuine responses and recommendations. With the internet at our fingertips and independent review sites increasing in popularity, don’t underestimate the power of an online review.
92% of customers trust recommendations from their contacts, with 93% of us then turning to online reviews to help us ultimately decide on a company.
The Net Promoter Score is a standardised way of measuring customer engagement. You can also look at;
- Your social media metrics – monitor this across your platforms monthly. Use the analytics tools to measure follower growth and engagement, as well as the types of content your followers are reacting to the most.
- Testimonials and reviews – provides a true and insightful account of how you have worked with your customers and built up trust.
Most CRM and mailing systems have easy to implement ways for you to gather this kind of information, by adding in a custom-built survey, or poll, into your e-marketing. Alternatively, there’s survey sites such as Survey Monkey or Survey Planet which also do the job.
The Customer Experience Correlation
Regularly engage with your customers and clients. Ensure their experience with your company is as good as it can be. This links directly to building the value of your company. However, merely raving about happy customers to prospective buyers means nothing without hard evidence to back it up. Did you ever hear anyone admit their customer experience was poor? If every company claims excellence, even if they’re not, you need to prove it to stand out from the crowd.
It’s an obvious driver of saleability. When a buyer is looking to purchase, they want to know what the future of your company looks like when they take the reins. You can quantitively measure your customer satisfaction with these suggestions, rather than solely relying on qualitative customer references and testimonials.
Customer Satisfaction is just one key measure which helps you to increase value in your business. Request your personal Value Builder Score to benefit from understanding how your business is positioned, compared to others.