Keepify rounded up some facts about the customer experience (CX) and presented them in an infographic titled "14 Customer Experience Facts Marketers Can't Ignore." These facts illustrate how companies are getting value from their CX data. I took away two things from these 14 facts: two more facts. For me, these two new facts help summarize the infographic. I'm also providing a couple of suggestions based on those facts. What do you take away from Keepify's infographic.
Fact 15: Loyalty leaders know how to use all their data. The 14 facts show how customer experience is about understanding the entire customer life cycle, from marketing and sales to service and support. Research shows that loyalty leading companies integrate their CX data with other data silos (from marketing, sales, call centers, human resources). Analytics applied to this newly integrated data set drives deeper customer insights. Here is IBM's take on how businesses can create value from data.
Suggestion 1: Integrate your CX data with other data silos to uncover deeper insights about your customers. You will improve the value of your data and analytics by answering bigger questions about your customers. Which call center metric matters to the customer? Where do I put my marketing dollars to optimize growth?
Fact 16: Customer loyalty is more than a single metric. I thought that some of the 14 facts were good examples of how companies are improving the value of CX analytics by measuring three types of customer loyalty: advocacy, purchasing and retention. Here is how companies are getting deeper customer insight by looking at customer loyalty more broadly.
Advocacy loyalty is about the customers loving you. This affection manifests itself as positive word-of-mouth/mouse behaviors.The following CX facts show how companies use advocacy loyalty to get insights from their CX programs.
- The probability of selling to a new customer is 5-20% (lower than selling to an existing customer - see below).
- 81% of customers will use social media and word of mouth to tell others about a positive experience with a mobile app.
- 55% of marketing spend goes to customer acquisition.
Purchasing loyalty is about customers expanding/deepening their relationship with you. They do this by buying new different offerings from you. The following CX facts illustrate why CX programs can impact up/cross-selling to existing customers.
- 70% of Americans said they are willing to pay more to companies they believe provide excellent customer service.
- Two-thirds of consumers would be willing to spend more with a company - 13% more, on average - following an excellent customer service experience.
- The probability of selling to an existing customer is 60-70%.
Retention loyalty is about customers not defecting to another company. The following CX facts show how customer retention plays an important role in CX programs.
- 55% of customers said they would cease buying from a company that provides poor service.
- 12% of marketing spend goes toward customer retention.
- It costs 6 times more to attract a new customer than it does to keep an old one.
Suggestion 2: Use different types of customer loyalty measures as part of your CX program. Different loyalty behaviors help you grow in different ways. To have an effective CX program, companies need to measure different types of customer loyalty. You will be better able to target improvements to address different growth needs (do you allocate company resources to attract new customers or use those resources to keep the customers you already have?)
See Customer Loyalty Measurement Framework for a deeper look at the concept of customer loyalty and how to measure it.