Customer experience is a crucial factor in driving shareholder returns for businesses. This is the key takeaway from the podcast interview with Jon Picoult that discusses the connection between customer experience and business value. The interview highlights the importance of speaking to executives and boards of directors in the language they understand, which is shareholder value.
Jon Picoult shares an interesting observation that sparked the idea for the Watermark Consulting Customer Experience ROI Study. Jon wondered how companies that excel in customer experience compare to those that lag in customer experience in terms of shareholder returns. This curiosity led to the genesis of the study, which has been updated every few years and now has 13 years of data.
The study reveals a significant connection between the quality of a company’s customer experience and its shareholder returns. Companies that lead in customer experience outperform those that lag by a ratio of over three to one. This data serves as an exclamation point on the case for customer experience at a macroeconomic level.
When presented with this data, executives may start to see that customer experience returns are not soft and intangible but rather hard and quantifiable. While they may not immediately write a blank check for customer experience initiatives, they begin to recognize the value and potential impact of a great customer experience.
To further demonstrate the value of customer experience at the company level, businesses should track the source of business revenue. By analyzing where the business is getting its revenue from, such as referrals from existing customers, it becomes evident how customer experience drives revenue. Additionally, quantifying metrics like the number of calls per order or the difference in lifetime value between satisfied and unsatisfied customers can further showcase the value of customer experience.
There are certainly challenges organizations face in achieving a good omnichannel customer experience. With consumers now using multiple channels throughout the buying process, it is crucial for businesses to provide a seamless and personalized experience across all channels. This requires the right technology and systems to capture and share customer information effectively.
It is important to understand the importance of customer experience in driving shareholder returns. It highlights the quantifiable connection between customer experience and business value, encouraging executives and boards of directors to prioritize and invest in customer experience initiatives. By delivering a great customer experience, businesses can not only enhance their brand image but also cultivate repurchase and referral behavior, leading to long-term success and sustainability.