Companies Profit Most by Investing in Customer Engagement



Better business performance results when CEOs show leadership in providing the best-possible customer experience.

Yes, when the big boss is involved in improving the experience of customers, the company enjoys more profit – plus revenue growth and loyal customers.

Those are the findings from a 2015 global study by Genesys (www.genesys.com).

ID-10097371The report is entitled, “The Missing Link: Connecting Customer Experience with Revenue Growth and Profitability.”

The research includes the customer experience (CX) efforts and leadership of 516 CEOs in 21 nations.

“This study clearly demonstrates that C-level engagement in customer experience initiatives drives competitive advantage,” says Paul Segre, President and CEO of Genesys.

“In an era when consumers have more choice than ever, the research validates that investment in CX is a sound investment in sustainable competitive differentiation,” he adds.

Key findings

The study concludes 58 percent of companies led by a CEO in charge of customer experience enjoyed significantly more profit.

Fifty-nine percent had stronger revenue growth.

Many CEOs in China, Hong Kong and Southeast Asia seem to understand the connection between CEO leadership on customer experience and profits.

However, only about 33 percent of CEOS in North America lead in customer experience initiatives.

In Europe, typically it’s the chief marketing officer who is the executive to lead in customer service efforts.

Sixty-three percent of CEOS who lead in customer service beat their competitors in satisfying customers.

Only 55 percent of North American companies see customer experience investments as “very important.”

But 71 percent of CEOS in Brazil, Columbia and Mexico lead the globe in making the customer experience “very important.”

More than 50 percent will increase customer-experience investments by 10 percent.

“Do what you do so well that they will want to see it again and bring their friends.”

-Walt Disney

Customer loyalty

Despite a universal decline in customer loyalty, only a third of CEOs understand that they’ll retain more customers with a customer-experience strategy.

An eye-opener: Just 20 percent of companies now see the benefits of social media in customer service perceptions.

But it’s different approach in Asia Pacific and Latin America. Such CEOs believe in the potential of social media of a customer-loyalty too.

For them, social media, Web self-service and online support will become more extensive.

“Ambitious companies are driving large investments in customer experience initiatives to adapt to the digital communication channels customers are demanding,” concludes Charles Ross, lead researcher of the study.

“By prioritizing CX and placing the CEO in charge, companies are taking an extra step to drive revenue growth and improve profitability.”

Amen. The data for North American companies is hard to believe — isn’t it?

From the Coach’s Corner, here are related resource links:

HR Management: 3 Values to Deliver Top Customer Service — The three values needed to achieve top customer service are easy-to-understand but arduous to achieve. But if your human resources program adopts and implements these values, you’ll achieve enviable organizational effectiveness – a high performance culture – for strong revenue.

13 Strategies to Keep and Attract Valued Customers — Have you experienced the agony of not enjoying the fruits of your labor? That includes not having enough time for projects, not enjoying life outside of your business, and worse – losing customers. You’re also losing opportunities for referral business. Here’s what to do.

How Some Companies Get Creative in Customer Service for Great PR — As you no doubt know, it’s increasingly competitive and costly to attract customers. It’s also a challenge to hang onto to customers while adding more for your business growth. Typically, consumers react favorably to marketing after receiving five positive messages.

How to Best Profit: Word-of-Mouth Advertising, Customer Service — To increase your sales revenue with word-of-mouth advertising, here are 10 tips.

10 Innovation Tips to Boost Your Long-Term Customer Base — Businesspeople are constantly under pressure. Daily events make it challenging to make critical decisions for financial sustainability. Businesses must innovate to survive. Here are 10 key questions to ask about your business.

Why Your Customer-Loyalty Program Might Not Be Profitable — Researchers are warning businesses that their customer-loyalty programs, which are designed to increase repeat business, may be causing more harm than good.

“Do what you do so well that they will want to see it again and bring their friends.”

-Walt Disney


 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.



Photo courtesy of Stuart Miles at www.freedigitalphotos.net

Seattle business consultant Terry Corbell provides high-performance management services and strategies.