Management consultant and educator Peter Drucker once declared, “If you can’t Measure Customer experience it, you can’t manage it,” describing what it takes to run a business effectively.
Business practices that contribute to optimal success can include things such as amazing products, friendly employees, and value-driven sales. If you can’t measure the constantly changing experience customers have with your company, do any of these things matter?
The importance of measuring customer experience
A company’s ability to measure the customer experience is one of its most important initiatives. Feedback can be used to improve your products and services, develop your marketing message, inform your sales strategy, and more when it’s properly collected and responded to.
Measurement of the customer experience comes with considerable risk, however. Making decisions based on inaccurate data, frustrating customers with too many surveys, sending poorly designed surveys, or failing to act on feedback collected can all harm your relationship with your customers.
However, if your company doesn’t formally invite customers to provide feedback, you’ll be missing out on a wealth of valuable information that can inform every aspect of your business.
Measurement of customer experience can greatly benefit the following three areas:
Measurement of Biteable’s customer experience.
Customers’ experiences drive sales
Customers often overlook the importance of customer experience programs in acquiring new customers.
Our clients find, however, that the data and insight we uncover play a crucial role in their sales process. Discover how.
Customer satisfaction and loyalty increase when you cultivate strong customer relationships. Consequently, existing customers become more willing to provide references for new sales opportunities, and these loyal advocates begin sharing their experiences with others. The net result is that sales cycles shorten, and close rates increase.
You’ll also gain competitive intelligence by measuring the customer experience. One way to do this is by asking open-ended questions of your customers. We often read customer comments that highlight competitive advantages or gaps as we analyze verbatim feedback. We also learn how the market perceives our clients in comparison with alternatives. Afterward, your sales team can use this information to refine their sales pitches.
When you increase the percentage of loyal, happy customers, your sales will increase due to the improved reputation of your company.
Defining priorities based on customer experiences
Managing a business is a daily decision made by your senior leaders. Do your customers assist in making those decisions?
The majority of companies tackle perceived problems based on anecdotal evidence rather than relying on reliable, measurable data to find improvement opportunities that produce the best return on investment.
When you use customer feedback to guide your strategic initiatives, you don’t have to guess what will work best for your company. Is a new product on the way? Getting feedback from customers will ensure time and money are not wasted on features and functionality that aren’t valued by them.
Here’s another tip – form the voice of the customer champions. Employees from this cross-functional team are tasked with analyzing the feedback gathered from your voice of the customer programs to identify the root cause of customer frustration. They then discuss ways to tackle certain initiatives to maximize their impact. So let’s move on…
Engaged employees are the result of measuring the customer experience
When people feel that they are contributing to the growth and improvement of a cause, they tend to become more loyal to it.
In the same way, positive customer experiences, as well as positive feedback, help employees feel good about their company’s mission and their role in achieving its goals.
Take a moment to consider it. Customers who are happy are more likely to be willing to work with you. Moreover, employees prefer working for companies with a good reputation in the industries they serve.
Ultimately, a happy employee means a happy customer.