As we find ourselves emerging from the Great Recession into the murky uncertainty of today’s economic climate, support organizations face a unique challenge. Many have completed extensive cost cutting initiatives predicated by the 2008 collapse, and have been increasing cash reserves to “be prepared.”
Some organizations believe now is the time to act in order to gain a competitive advantage and get the jump on the next economic cycle. Having already cut costs, these organizations are focused on revenue growth, specifically acquiring net new customers. While that’s a noble pursuit, it’s only part of the equation. An increase in net new customers, most studies demonstrate, doesn’t necessarily translate into an increase in the top line. The forgotten factor? Customer retention.
Recent studies provide illuminating insight into the linkages between the Customer Experience and Revenue Generation. For example, an organization generating $10B in revenue could generate an additional $284MM in revenue simply by improving their Customer Experience Index by 10 percentage points (according to a recent Forrester study). This same study illustrates the significant competitive advantage that top quartile Customer Experience performers enjoy over bottom quartile performers:
According to a study conducted by RightNow Technologies, the two biggest factors contributing to a positive Customer Experience are (1) resolving customer support issues in a timely fashion, and (2) providing the customer with access to knowledgeable customer support representatives.
While the acquisition of net new customers is important, it has to be pursued in conjunction with a focus on improving the customer experience. By strategically considering how to provide existing customers with a compelling customer experience, support companies gain insight that provides competitive advantage in net new customer acquisition, and the combined impact on revenue growth will far exceed the results of a single focus.