It’s common knowledge that poor customer experiences can cost businesses financially, both in terms of lost customers and prospects, as well as in the loss of repeat transactions. The effect of poor customer experiences can extend far beyond these immediate losses. Unfortunately, many organizations are so focused on the dollars and cents impact of poor customer experiences that they fail to realize the deeper impact.
How does poor CX actually impact your organization?
Certainly, the immediate monetary cost of poor experiences is a driving force for many leaders, but there are a number of other factors that can cost your business just as much, if not more, in the long term.
The often-overlooked costs of poor CX include:
- Negative reviews: Customers who suffer negative experiences are often willing and motivated to share those experiences with others. Social media, independent online review sites and brand sites are filled with customer “horror stories” and warnings for others to stay away from those businesses that treated them poorly. These reviews are read by prospects during the research phase of a purchase, and can immediately disqualify a brand, regardless of the actual quality of the product or service in question.
- Loss of loyalty: Customers that enjoy the products and experiences you deliver often become loyal advocates of your brand. These advocates are likely to recommend your brand to family, friends, coworkers and even strangers. When a loyal customer encounters even a single negative experience, you run the risk of losing their trust and the potential revenue resulting from their advocacy.
- Poor employee experience: Employees that interact directly with customers often bear the brunt of their anger and dissatisfaction. Frequent negative engagements with unhappy customers can leave front line employees feeling overwhelmed, frustrated and upset. This negative morale can lead to higher employee turnover and increased staffing challenges.
These factors, added to the costs of lost revenue or repeat business, clearly demonstrate the importance of delivering exceptional experiences to every customer, via every communication channel possible.
Interested in learning more about the impact of poor customer experiences? Watch our Digital Roundtable: The Cost of Bad Customer Experience. During the roundtable, our own Chief Experience Officer, Kurt Schroeder, and industry expert Dan Gingiss share their insights into the actual costs of poor CX, and articulate steps you can take to gauge the impact poor experiences can have on your customers and your business.
How can you avoid the costs of poor CX?
Avoiding the costs of poor experiences really comes down to one thing – delivering effective and memorable experiences to every customer, every time they interact with your brand. This isn't always easy, but with planning and diligence, you can eliminate the majority of poor experiences.
Start with developing a detailed knowledge of your customers and their expectations, needs and preferences. With this knowledge in hand, carefully plan the experiences you want to deliver, and ensure you have the technology in place to support those experiences. By taking strategic action now, you can avoid the costs of poor CX and deliver moments that your customers will always remember.