Global events have pushed all companies to resuscitate their CX strategies in order to stay relevant and revenue positive – particularly those in the B2C market.
Brands with superior customer service bring in 5.7 times more revenue than their subpar peers but in a fiercely competitive marketplace, it’s hard to stand out. So what can a business put in place to regain market penetration?
Michale Porter famously said, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do – it’s a matter of being different at what you do.” With a differentiated CX strategy, your company can be ready for whatever changes the market might throw at you.
Here are the top 3 ways to renovate your CX strategy:
#1 Digital Transformation Done Right
70% of digital transformations fail, no matter the size of the company. When businesses adopt technology without a clear, goal-driven vision for how to implement it, revenue is wasted.
Start your digital transformation journey by assessing the data you have and ask yourself these 4 questions:
1. Who are your customers?
2. What does your customer journey look like?
3. What are your customer’s habits throughout the customer journey?
4. What emotions or feelings do they have as they move through these stages?
From there, base your DX strategy around meeting and surpassing their needs. This can mean implementing an AI-powered chatbot to answer FAQs or using machine learning (ML) to lower customer effort, improve personalization, and deliver relevant product suggestions. By leveraging the varying powers of AI and ML, you can base your strategy on data-driven outcomes.
Whatever methods you opt for, make sure your decisions come from an informed and data ridden perspective. When you can explain and point to why you’re making certain changes, the more buy-in you’ll get from the C-suite.
#2 Calculating Customer Lifetime Value
Customer retention programs should be at the core of any CX strategy. Understanding your customer lifetime value (CLV) can pay off in big returns--here’s how to calculate it:
You can also use this online calculator to help evaluate your average CLV. This number should be top of mind as you develop your strategy and a part of a goal that grows every quarter.
Remember, in order for retention rates to thrive, it’s crucial to monitor customer feedback to help ensure a smooth experience in every interaction.
#3 Social Media: The Canary in The Coal Mine
Social media has brought a number of positive changes to B2Cs, but most significantly the ability for customers to engage with brands directly. It’s one of the most powerful ways to listen to customers, develop proactive solutions, and forecast for the future.
While you can leverage social media for inputs from customers around unknown issues, ideally companies should shift to a more proactive strategy. Instead of taking a reactionary approach to social media, be proactive in building your community. Offer promotions, deals, and insightful user-generated content on a regular basis. Increasing customer retention by as little as 5% can increase profits anywhere from 25 to 95%.
A single instance of poor customer service is enough to turn off at least 50% of customers. In the present and post-COVID world, brands can’t afford to not have a comprehensive social strategy.
As you move through your strategy blueprint, make sure to follow the data across your platforms to understand which technology you’ll need to optimize your efforts. A digital experience is truly the differentiator between good, great, and amazing potential.
Do you have questions about how to differentiate your CX strategy? I have some tips. Let’s connect, Josh.Semler@taskus.com.