How Customer Experience Drives Business Success

When people ask me why I like working in Customer Experience, I normally reply something with "I love how putting customers at the heart of decisions helps businesses become profitable and sustainable"

In this article, I'll explore how delivering customer experience improvements can provide a wide variety of different benefits.

The 5 C's Model

As a CX Designer, it was critical to articulate not just my ideas but the benefits that each improvement could provide. In doing so, around a decade ago, I first conceptualised my 5 C's model. Over the years I've evolved and refined this and I'm pleased to share with you all today.

The 5 C's model articulates how improving customer experiences, and the processes that sit behind them, delivers benefits and splits these benefits into 5 core themes, a bit of a balanced scorecard if you would. While not all themes are universally applicable, the model provides a structured framework for fostering discussion around the benefits of customer experience enhancements.

Benefit 1: Customer First. Always!

Unsurprisingly, the first theme in the 5 C's model is 'customer.' All improvements emerging from a CX function should inherently offer value to the customers, clients, or users of that service. This value may take many forms; making a process quicker, reducing the number of touchpoints, reducing moments of frustration or, providing moments of delight and surprise.

Crucially, these customer-centric enhancements drive significant behavioral changes; customers may reach out to firms less frequently, they may lodge fewer complaints, they might increase their purchases, and, where applicable, recommend the business to their social circles. All of these behaviours will impact the bottom line... and we'll come back to that later.

?

Benefit 2. Colleague

Our next driver of benefit is that of creating a happier colleagues through delivering not just a good customer experience but enhancing the employee experience too.

Certain CX initiatives will provide colleagues with a more enjoyable working environment. For example, in one project I worked on, we overhauled how the sales and retention teams dealt with customers and in doing so changed how they were managed, coached and developed. The ripple effect on staff morale was substantial – reduced sick leave, increased staff retention, and heightened productivity. These benefits not only create a more harmonious work atmosphere but also contribute to cost savings by minimizing staffing overheads and associated expenses.

Benefit 3. Compliance

All companies must abide by the local laws associated with their business and this can impact the customer experience and the third C in the 5C's model looks at how improvements can improve adhence against of these rules; aka compliance.

In heavily regulated sectors like finance, utilities, or legal services, regulators lay down guidelines, often referred to as "conduct rules," outlining how companies should ensure fair treatment for customers. Many customer experience initiatives can support companies align with these regulations.

It's crucial for firms to adhere to their regulations; non-compliance can result in substantial fines. For instance, just last year, one UK energy company was directed by its regulator to compensate over ￡5 million across 500,000 customers due to subpar customer service.

?

Benefit 4. Community

On occasion, an initiative which benefits an individual customer may also benefit wider society, the 'community'.

A wonderful example is the Digital Eagles initiative ran by Barclays Bank in the UK. This scheme aims to support not just their own customers but people in the wider community, in becoming more confident with technology, and ultimately help improve their digital skills.

These sort of initiatives help individual customers whilst building stronger, more connected communities. This will often increase and improve brand perception which of course may then drive increased sales.

Community involvement may also support an organisations strategic efforts to be more ethical and socially conscious, be that informally or through Corporate Social Responsibility (CSR) and Environment, Social & Governance (ESG).

?

Benefit?5. Commercial

We've covered 4 C's in the model, but what are they driving to...? The answer to that is the fifth and final C, and arguably the most critical... 'commercial'.

Ultimately, in most organisations, improvements should drive a commercial return; increasing profitability through either reducing costs or increasing revenue.

All of the 4 drivers in the 5Cs Model lead to behaviours and actions which will drive better commercial outcomes. And simply put, it is because of this, that CX drives bottom line improvements.

So there you have it, these are what I feel are the types of benefits you can look to deliver as part of your CX initiatives. Do they resonate with you? Have I captured everything? How would these drivers look in your industry or organisation? Share your views in the comments below.