Should customers be satisfied at all costs?
Whilst delighting customers is a laudable goal it does not always make commercial sense. Customer experience like every other commercial investment must demonstrate clear financial returns. However, the relationships between customer satisfaction and increases in average client spend; share of wallet; customer profitability can be challenging to prove.
It is an imperative that companies combine their customer insight with their financial and other operational systems such as complaints. Without doing so the relationship will be almost impossible to prove. With only 30% of companies doing so, the over-whelming majority are preventing themselves from generating true value from their customer programmes. Those who do, are able to efficiently prioritise their resources to resolve issues and create a detailed understanding of how to achieve target customer satisfaction levels at the optimum cost point.
Research first completed by McKinsey in 2006 demonstrated that operational efficiencies of up to 10% in call centre staffing costs can be achieved without noticeably impacting customers willingness to recommend. Companies who fail to take advantage of combining their financial data with their customer feedback are missing a trick. If they fail to seize the opportunity their competitors won’t.