Return on Experience – The Pot of Gold at the End of the CX Rainbow

Allow me to start my weekly series of newsletters (and this new year) with Customer Experience (CX) wisdom from Harry Hynekamp. While working with Harry in his role as Director of Customer Experience for Mercedes-Benz USA, he noted:

“If you think customer experience is a destination, you don’t understand customer experience.”

Since customer experience elevation (for internal and external customers) is an endless and tireless pursuit, let's review a few benefits of staying the course on your CX path. I refer to these positive business outcomes as ROE or Return On Experiences.

While research on ROE is extensive, please accept this snippet as encouragement to sustain Human Experience efforts throughout 2022. On to the findings...

• It can cost five times more to acquire new customers than to keep your existing ones
• Nielsen found that customers are 77 percent more likely to buy from you when they hear about you from family or friends
• Destination CRM shows that if you reduce your churn by 5%, you can increase your profitability by 25 to 125%
• According to Bain, a five percent increase in customer retention can increase your profitability by 75%
• How about Bain’s finding that the average repeat customer spends 67% more in their 31st-36th months with you compared to months 0-6, and
• A two percent increase in retention typically equals a 10 percent decrease in your costs.

Ok, that's way too many statistics for a right-brain dominant guy like me.

Hopefully, however, these potential rewards will keep you striving to help your customers find their pot of gold at the end of your CX rainbow!?Which reminds me of a quote from Ziad Abdelnour who suggested, we should "keep moving forward, keep pushing. The pot of gold is at the end of the rainbow, not the beginning."

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This downloadable infographic summarize the research mentioned above. Feel free to share or post it.

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