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The 7 Benefits Of Measuring Customer Experiences

Monday, March 18, 2024

The 7 Benefits Of Measuring Customer Experiences

Customer experience (CX) has become a key competitive differentiator that businesses cannot afford to ignore. Research shows that 81% of customers will switch brands for better experiences. Given the direct revenue impact, measuring and optimizing CX should be high on your priority list.

But beyond just revenue retention and growth, consistently monitoring customer experience delivers several additional benefits. Implementing a metrics-driven CX program pays dividends across your organization, not just for your customers.

Let’s explore the seven main upsides that come with proactively measuring CX:

1. Identify Specific Weak Points

Identify Specific Weak Points

I see it all the time – companies rely solely on those big generic metrics such as overall satisfaction or Net Promoter Score (NPS). Don't get me wrong, those high-level numbers are important. But they only tell you part of the entire story.

Just because someone ranks you a 4 out of 5 on satisfaction doesn't mean their journey was flawless. There could be all types of frustrating touchpoints and broken processes degrading the experience that overall scores fail to expose.

Not to mention, half of them are begging their customers to leave a 5 star review.

It's like reviewing a movie based only on the average rating. A 3 out of 5 still doesn't tell you which specific scenes bombed or why certain characters ruined it! You need more granular data.

That's why for bulletproof CX measurement, you have to tie metrics and feedback directly to every step of the customer journey – from initial research to onboarding to service requests and beyond.

This touchpoint-specific data reveals exactly which interactions trigger negative emotions such as confusion, frustration, or distrust. And exposing those suboptimal micro-moments is key for diagnostics and treatment.

It's hard to fix what you can't see clearly. Broad scores keep you blind to issues that combine to crack overall satisfaction. But segmented CX insights shine a spotlight on priority weak points so you know what to tackle first.

It goes from guessing about general perceptions to having transparent, actionable data guiding decisions. You diagnose the root causes instead of just slapping on symptom bandaids. This leads to customer journeys with all killer, no filler.

2. Boost Customer Lifetime Value

Every business owner knows acquiring new customers costs a lot more than keeping existing ones happy. Especially now, when advertising gets more expensive, mailers are becoming less and less profitable to ship out, costing more and more.

That's why focusing on customer lifetime value (LTV) – the total spending of a customer over their entire relationship with you – is key.

And here’s the thing: Customers with better experiences spend 140% more compared to those with suboptimal journeys. So if you improve metrics across touchpoints, you directly increase retention and wallet share.

I have a saying and it’s been repeated many times. “A buyer is a buyer, is a buyer, is a buyer”.

Meaning a buyer who buys from you, will buy from another vendor, service provider, product creator, or they can also buy from you. So you want to be in front of them at all times, maximizing your lifetime value per customer.

This reduces acquisition costs, and exponential growth from word-of-mouth referrals. The entire Magnetic Marketing System is based on this principle.

Yet most businesses fail to connect the dots between CX metrics and lifetime value. They lack visibility into which journeys drive value versus risk.

Comprehensive CX measurement reveals exactly how experience gaps impact repeat purchases, share of wallet, retention risk, and referral likelihood.

Armed with this intelligence, you can model the monetary value improving metrics that certain targets will provide.

Suddenly good experiences become a profit center, not just a cost center. The ROI case for better CX is easy when you quantify impacts on customer lifetime value.

So for any business owner laser-focused on long-term revenue growth, CX metrics are the ultimate barometer to maximize LTV. This data puts dollars into delighting customers across their journeys.

3. Uncover Growth Opportunities

Uncover Growth Opportunities

Now, my guess is, if you’re reading this, you’re a business owner who is likely always brainstorming new ways to maximize revenue. This means new products, markets, campaigns, etc. etc. But here’s an untapped goldmine most overlook: optimizing existing customer journeys first.

See, in my entire Magnetic Marketing System, I talk about customers who pay, stay, and refer. This is the part where they STAY, and REFER.

It amazes me how many owners chase new opportunities before fully perfecting experiences for current buyers. They leave easy money on the table hiding in CX insights.

You see, comprehensive metrics expose exactly where you over-deliver value versus under-deliver across interactions, segments, and touchpoints.

Analyzing this opportunity data shows where fixing pain points dramatically grows share of wallet and loyalty – the lowest hanging fruit with quickest impact.

It guides you to launch relevant new offerings that perfectly align with existing customer needs. And it quantifies potential gains so you validate ideas before overinvesting.

The point is sound CX measurement provides an x-ray revealing hidden revenue growth prospects already within your reach. Listening to current customers' unmet needs is the most surefire way to identify expansion opportunities in an instant.

Forget speculative brainstorming or risky innovation. CX data offers a tried and true roadmap to amplify top-line sales before testing new waters. So if you're looking to move the revenue needle, start with surveying existing fans – the gold is already in your face.

4. Continuously Optimize

It should be clear by now that this CX work is never a one-and-done effort. You don't just measure metrics for a quarter and check the box as "done". If there’s one thing you need to remember, it’s this: Continuous. Optimization.

Customer needs evolve fast. And flaws naturally regress back into journeys as new teams and channels launch. You have to maintain vigilance.

It’s just reality – customers grow fickle, priorities shift, and expectations rise over time. The experiences delighting them now might elicit yawns a year from now. You cannot take your foot off the gas pedal.

That’s why savvy brands bake measurements into ongoing processes to keep pace. Always-on CX insights mandate which priorities get resources as needs change.

Such as when we saw e-commerce satisfaction remain sky-high after launch, but brick-and-mortar feedback degraded. Omnichannel data guided investments into unified experiences across locations.

Ongoing insights also provide an early warning system for detecting micro changes before they become detrimental patterns. We course-corrected mobile app friction with minor iterative testing rather than reacting too late.

Early flags let you continuously fine-tune elements with small tweaks, not major surgery.

The takeaway here – vigilant CX measurement enables you to perpetually optimize and realign without losing touch. Incorporating always-on insights equates to constantly delivering satisfactory returns, despite evolving expectations.

5. Motivate Employees

Motivate Employees

Last but certainly not least – measuring CX has immense power to motivate and inspire your team.

At the end of the day, every employee wants to know their work positively impacts real human beings. That sense of purpose and self-worth drives engagement through the roof!

Validating you deliver happiness provides a profound morale booster beyond just paychecks. Quantified customer sentiments reinforce frontline and back-office teams to make the lives of real people better daily.

Especially when you share positive feedback – high satisfaction scores, video testimonials, and five-star reviews praising specific staff. Seeing gratitude firsthand for incredible support or service fuels tremendous pride.

But it also takes vulnerability to spread constructive feedback about areas for growth. Even painful comments galvanize teams to hone skills and upgrade experiences from the inside out.

Employees feel trusted as subject matter experts to interpret insights tailored to their roles. CX metrics empower individuals to pinpoint personal opportunities boosting their contributions. It inspires their best work.

Now compare that to flying blind without surveying customers at all. Your team feels helpless relying on executive assumptions about external perceptions. Talk about demotivating and risky!

Whereas sharing unfiltered CX insights cabins-to-C-Suite builds purpose and internal expertise shifting culture drastically. And motivated, focused employees directly translate to happier customers. It’s a positive cycle feeding itself!

So remember your team needs the good, bad, and ugly too. Trust in their passions and talents by arming individuals with data to love customers even more.

6. Benchmark Performance

Implementing a sound CX measurement program provides an invaluable internal benchmark to assess experience performance over time.

Rather than vague gut feelings about perceptions, you have hard metrics quantifying whether CX investments actually pay dividends across interactions.

Tracked over quarters, aggregated CX scoring spotlight worrisome regression or stellar enhancements beyond anecdotal hunches. You ground decisions in trends data versus emotionally reacting.

Benchmarking also enables comparison against industry standards to gauge competitive standing. See how NPS or effort score ratings stack up to rival brands. This motivates teams through friendly rivalry.

Ongoing CX benchmarks either validate your exceptionalism or mandate closing experience gaps to meet rising expectations. But without historical comparisons, you risk complacency missing regression red flags.

So institute CX metrics now to benchmark where you stand today. Consistently track against historical baselines and external standards as a checkpoint. Give teams crystal clear vision into whether experience efforts propel or fall short of objectives over time.

7. Break Down Silos

Break Down Silos

A CX metrics program is one of the most effective tactics to break down internal silos between teams.

When data is shared cross-department, every function gains complete visibility into respective impacts on the unified end-to-end journey.

Suddenly those frustrating CX blackholes caused by fractured processes get called out when no group claims ownership. Misalignments between support, operations, product, etc. now have clear accountability spotlights.

This single source of truth fosters productive communication and joint problem-solving. Various groups come together connecting their interdependent dots working collaboratively towards shared customer-centric goals.

Realizing one team's outputs directly feed another's performance drives exponential gains. Journeys improve holistically through removing buck passing and endorsing shared responsibility.

CX insights power this culture shift from finger pointing to hand holding. Common understanding of external perceptions builds bridges internally and dissolves silo mentalities.

So don’t underestimate measurement programs to harmonize the symphony of staff orchestrating seamless end-to-end songwriting for customers. Shared CX data is the secret sauce bringing internal groups together in perfect harmony.

Concluding

There you have it – the five foundational benefits of committing to CX measurement! From uncovering quick revenue wins to motivating staff, the payoffs are simply too powerful to leave on the table.

Now I don’t expect you to tackle all of these at once. Try picking 1-2 advantages that connect to current priorities for your business. Start there.

Maybe your goal right now is justifying a budget for an overdue website redesign. Use data to quantify how CX impacts conversion rates to prove the ROI.

Or you need help rallying executives around improving long wait times. Share painful customer verbatims to make the urgency crystal clear even for the biggest skeptics.

Whatever the case, lean on CX metrics to drive outcomes important to your org today. Then let the data justify expanding your measurement framework and optimization over time.

Because here’s the reality – experience is the key differentiator customers judge brands on. Consistently monitoring and improving CX builds that magical emotional connection that fosters loyalty no ad can fake.

By now, you should’ve realized that this work goes far beyond just surveys and scores. When implemented skillfully, CX measurement becomes a catalyst for transforming culture, mindsets, and skills from the inside out.

It’s an engine that – when fueled with customer truth – drives continuous improvements with a purpose year after year. And that engine powers growth for companies committed to delighting customers relentlessly.

The road to understanding customer experience is not an easy road. Many business owners are usually chasing down clients and newer deals than maximizing their customer experience.

​That is why, I highly recommend you join Diamond, where you not only will get access to the Whole Enchilada, which has trainings on how to improve your customer journey and experience, but also you’ll access people who are the top 1% of business owners, willing to network and provide help as needed.

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