CX, Customer Retention, and the Bottom Line
Businesses place a great deal of emphasis on finding new customers. Ad campaigns, marketing efforts, social media engagement, all target new customers in an attempt to draw them into the company fold. Few efforts concentrate on the customers that already exist. This is where improved customer experience becomes so important. By gathering data on existing customers and improving their experience engaging with the company, businesses have a better chance at retaining them and reducing churn.
According to the Harvard Business Review, increasing customer retention rates by as little as 5% can improve profit from a 25% expected return to 95%. This seems like an astonishing number until you take into account the cost of finding a new customer versus retaining an existing one. The White House Office of Consumer Affairs says that it is 6-7 times more expensive to to woo a new customer than it is to retain one you already have. This makes it just as important to concentrate on improving customer experience as it does in improving marketing efforts.
Through digital channels and extensive feedback, customers leave a footprint that businesses can use to measure their happiness and improve in areas where customers may be disgruntled. Big Data Analytics is a powerful tool to gauge customer sentiment and identify problem areas that might exist in customer experience. By looking not only at internal data such as surveys and solicited feedback, but also unifying that data with external unstructured sources, businesses can receive a clear picture of overall customer experience.
By using data science and machine learning, businesses can protect their bottom line by improving customer experience based on the feedback of their actual customer base. Artificial intelligence can process this mountain of data in minutes and hours, not days and weeks, giving companies the ability to address issues in real time. Keeping customers engaged will improve revenues and profits across the board for businesses, and big data analytics is the tool to ensure that happens.