In recent years, the customer experience (CX) has taken center stage. To remain competitive, businesses have to ensure that customer expectations aren’t just met but exceeded.
Most companies understand that CX benefits their bottom line. However, they might mistakenly assume that the enhanced profitability is associated solely with increasing the size of the customer base and improving customer retention.
While those are certainly factors, better CX doesn’t just bring in additional revenue; it can save your business money, too. Here’s how.
Reducing Customer Contact Costs
When you make improvements that benefit CX, you can typically reduce your customer contact costs along the way. Since many CX improvement plans involve making information accessible to customers through always-available mechanisms, you can reduce customer demand for agents.
For example, by deploying chatbots to make FAQs and product or service information readily available, you are decreasing the number of contacts that actually reach an agent. Instead, your customers can find the answers they require quickly using a self-service model. The system only shifts them to an agent when the solution they seek isn’t available through the system. As a result, your wait and call times may shorten, and you might be able to decrease the size of your workforce, both of which can result in a savings.
Capturing data is at the heart of many CX initiatives. An in-depth analysis of customer contact behavior is typically a critical part of determining which improvements would yield the greatest results.
These data collection efforts can also help in reducing costs. For example, by using past customer contacts to build a robust knowledge base filled with solutions to previously encountered problems, you can resolve future customer issues quickly. Not only is this enhancing CX, but it can also result in a savings. You can build out the FAQs in a chatbot and online to cover the new information as well as reduce contact times for those who connect with an agent.
Plus, you can review the root causes that are responsible for the most calls. This empowers you to find a permanent resolution in an area that will yield noticeable results, both for improving CX by eliminating a problem and for reducing contact center demand.
Limiting the Need for Compensation
Often, companies compensate customers when they have a poor experience. Refunds, credits, and similar monetary offerings are common options for appeasing customers who feel a business hasn’t met their expectations.
However, when CX becomes a priority, the need for compensation can be reduced. Contact center wait times go down, commonly needed information is accessible through self-service options, and frequently occurring problems are corrected.
As this happens, fewer customers will become frustrated to the point where compensation becomes necessary to satisfy them. Ultimately, this reduces a key customer management cost, potentially in a substantial way.
Ultimately, CX is an investment, but it is one that reaps dividends. By making CX a priority, you aren’t just improving your brand’s reputation; you also create savings opportunities in a variety of areas. The impact on your bottom line can be significant, and your customers will be happier, too.