Focus on customer experience for a 3 to 1 return on your investment
- Posted on June 7, 2016
This article was originally written by Avanade alumn Ken Ramoutar.
Research shows that customer experience is the single most important investment companies can make to drive competitive advantage. Articles from Harvard Business Review to analyst reports have been highlighting this for some time. But, what is it really worth in hard dollars and how do you make the case for investment?
A new global study by Avanade and Sitecore quantifies what you’ve always intuitively known: brands that invest in creating great customer experiences reap significant financial benefits. In fact, brands investing in customer experience management have seen a 19% increase in revenue in the past 12 months. Respondents also cited impacts right across many levers of the business including increased productivity, reduced costs and increased customer satisfaction.
We hired Vanson Bourne to conduct a global survey, and the results will, in pop-speak, blow your mind: The study, conducted with 880 decision makers in six countries, found that for every dollar invested in improving the customer experience, businesses generated an average of three dollars in return.
Furthermore, the research indicates that improving the lifetime value of customers brings a host of financial benefits; the survey respondents estimate that improving the lifetime value of customers has resulted in a revenue increase of 20%.
Interestingly, the research also probed into how customers are achieving and hope to achieve these results. Staggeringly, 78% of the respondents are upgrading or adopting a new marketing technology and 50% are using a partner and upgrading new skills.
We have seen an aligned increase with the number of Avanade clients who are using cloud and marketing as-a-service based customer experience solutions. This enables marketers to augment talent challenges, better absorb and become data-driven with their marketing and accelerate overall market agility with quicker response time to market. By outsourcing components of your customer experience strategy, your time to benefit can be much faster than you think. Learn more about the benefits of a customer experience strategy and how to achieve them in both the short term and long term.