Why a Customer Experience Team a Revenue Generator not a Cost Center

Introduction

A customer experience team can help organizations survive and thrive by strengthening customer relationships, building trust and by cross selling. Earlier,  customer support was limited to post-sales, agents would answer customer questions and customer interaction was limited to resolving issues. But now the scenario has changed. Salesforce has revealed in its study that 54% of agents think that the management views customer service as a revenue generator rather than a business cost. Now, the CX team or customer experience specialists have adopted a more proactive role where they interact with the customers, provide quick query resolutions, and inform and educate them. It ensures that the relationship with the customer is continuously nurtured, leading to customer expansion opportunities. According to Calabrio, 97% of consumers and 98% of contact center managers believe customer service interactions impact whether consumers stay loyal to the brand.

Let’s discuss why a customer experience team is increasingly recognized as a revenue generator. We’ll also understand how to measure a CX team’s efforts with customer experience analytics and customer experience KPIs to monitor its efficiency.

Top factors that make a CX team a revenue generator

• Increased Lifetime Value: A CX team is a critical link between the business and the customers. It monitors customer interactions across all the touch points and understands the customers’ preferences and pain points. It also acquaints the company with the customer’s problems and enables it to offer the best solution to retain them and keep their trust intact in the brand. It leads to an increased customer lifetime value (CLTV). A CX team lets a business tap the opportunity for customer expansion with an existing customer base. With repeated purchases, a company increases customer lifetime value, leading to more profitability.
• Brand awareness: It’s crucial to build brand awareness in a competitive marketplace. A customer experience specialist team helps a business in this endeavor by constantly delivering on the customer experience front. By delivering exceptional customer experiences, customer success coordinators help create and reinforce the brand value, popularize it, and create a distinct identity in an overcrowded marketplace.
• Brand Advocacy: A customer experience team ensures that customer relationships are nurtured, and high satisfaction is delivered at every touch point. This results in word-of-mouth publicity that builds goodwill in the market and helps increase profitability. Referrals also start pouring in, flooding the sales pipeline with warm and hot leads. Businesses get an excellent opportunity to get maximum conversions with the efforts of a CX team.
• Low Customer Churn: Customer acquisition costs are high, and losing the existing customer base for any reason impacts an organization’s profitability. A CX team understands the customers’ issues and solves them at the earliest. It nurtures customer relationship and builds their faith in the brand. When the CX team meets customers’ demands and ensures they succeed with the products and services they have bought, they are less likely to switch to other brands.
• Customer Retention: According to Zendesk, 64% of leaders say that customer service positively impacts their company’s growth. A customer success coordinator nurtures the customer relationship with continuous interactions, resolves problems, and maintains a positive relationship. The customers feel valued, and they keep choosing the brand over others. Businesses can reap customer loyalty benefits and continue expanding their relationship with them.
• Renewals: A CX team, though not directly responsible for revenue generation helps businesses maximize profitability with customer expansion services. With customer retention, customers tend to stay loyal to the business, and the CX team identifies upsell and cross-sell opportunities. Satisfied customers are likely to consider upgrading to premium products. They also consider buying complementary or additional products, which leads to increased sales. A significant reason for renewals can be attributed to the strong relationship that a CX team builds with the customers. Customers gain confidence in the business and are willing to spend more and make more purchases.
• Reduced Customer Acquisition Cost: The CX team is responsible for building and maintaining customer relationships. It increases customer retention, and the business can avoid incurring considerable costs in acquiring new customers repeatedly. It need not invest on a large scale in marketing to attract new customers to keep the sales pipeline filled with high-quality leads. A business can leverage the existing customer base and increase the wallet share to maximize profitability. With reduced expenses on customer acquisition, companies can save financial resources. The same amount can be plowed back into the business for growth and customer expansion. Therefore, a CX team helps in generating and maximizing revenue.

How can you measure CX’s team efforts?

CX can be measured with various customer experience KPIs and evaluating factors that have an impact on the profitability of a business.

• Net Promoter Score (NPS):The NPS is one of the top customer experience analytics that measures customer loyalty and lets businesses understand how likely customers will refer it to others. If the score is high, it means the customer satisfaction level is high, and they are more than willing to make referrals, helping the business to acquire more customers.
• First Contact Resolution Rate (FCR): The first contact resolution rate is another indicator that determines the success of your CX team. It is the percentage of customer queries being resolved in the first interaction. If customers are getting their queries resolved in the first call and the company spares them the ordeal of explaining their issues repeatedly and calling it, it is certainly a success of the efficiency of the customer management team.
• Customer Satisfaction Score (CSAT):The customer satisfaction score determines how satisfied the customers are with the product or service they have purchased from the business. This customer experience KPI determines the efficiency of the CX team and evaluates the quality of customer support they provide. The CSAT scores also allow firms to identify the customer’s pain points, address their concerns, and deliver high customer satisfaction by improving the quality of the product/ service offered.
• Renewal rate: Customer expansion with cross-sell and upsell opportunities reveals how successfully the CX team has nurtured the customer relationship and encouraged them to make a repeat purchase. A business can monitor the renewal rates and determine the CX team’s efficiency.

Conclusion

From the above discussion, there are plenty of reasons to say that a customer experience team is a revenue generator rather than a cost center. Customer experience (CX) influences customers’ decision to stay loyal to a brand and not move to competitors. A good CX enables businesses to build brand loyalty and fulfill customer expansion plans. A high customer lifetime value is undoubtedly what a business wants from its customer base, and an enhanced CX ensures the same. Increased customer retention and lower attrition rates help companies boost profitability and maximize revenue in the long run. These factors make the customer experience specialist team a revenue generator rather than a cost center. Companies can use various customer experience KPIs to determine the efforts of a CX team and provide the roadmap for improved performance.

Salesforce has revealed that 88% of buyers say experience matters as much as the company’s products and services. Businesses should note this exciting and positive trend and focus on delivering an enhanced CX and high customer satisfaction. Outsourcing a customer experience specialist team can help companies achieve these goals.

About MyCustomer360

MyCustomer360 is a customer management company that helps businesses worldwide to deliver better customer experiences with customer support, customer success, and customer expansion services. Our customer experience specialist team allows companies to strengthen customer relationships and generate more revenue by creating a happy customer base. Customers appreciate businesses that empathize with them and solve their problems immediately. We help companies to understand their customers and exceed their expectations. MyCustomer360 strives to serve clients with excellence, help them build brand loyalty, and boost profitability. For more information, feel free to visit our website.