Renewing Commitment to Customer Experience – A Cost-Saving Approach

In many parts of the US, back to school begins weeks before the first nip of autumn can be felt in the air. It is a season that inspires lifelong learning, seeing things differently, and replacing the antiquated with the fresh. In this spirit of reconsideration and renewal I just read research scientist Peter Kriss’s piece, The Value of Customer Experience, Quantified, about his study exploring if and how it is possible to quantify the impact of exemplary and not-so-stellar customer experiences. He writes; “the rationale we often hear for not investing to deliver a great experience is that the cost is high. Speaking to executives inside these businesses, however, we often hear the opposite. That is: delivering great experiences actually reduces the cost to serve customers from what it was previously. Unhappy customers are expensive — being, for example, more likely to return products or more likely to require support. Systematically solve the source of dissatisfaction, you don’t just make them more likely to return — you reduce the amount they cost you to serve. For example, Sprint has gone on record as suggesting that as part of their focus on improving the customer experience, they’ve managed to reduce their customer care costs by as much as 33%.” Peter Kriss’ findings should dispel any myths and misconceptions alive in your organization that serving your customers better is cost prohibitive. Isn’t this season of renewal, a great time to “go back to school” and invest in the experience you deliver?