Why Customer Experience is Key to Scaling Revenue

With most businesses looking to increase profits at some stage in their development, the journey towards doing so can be long and full of challenges. Whether you are a start-up or an established company, getting the required balance between your investment into the business and growth isn’t easy. At some point, you’ll want to be scaling your profit rather than just growing your customer base or sales revenue. To do so, businesses need to be able to make savvy use of their available resources.

To scale a business successfully, careful planning and strategy are needed so that revenues increase yet new costs stay as low as possible, making the business profitable. In theory this sounds quite straightforward, however, identifying areas of your business where improvements can be made to help scale is not.

At Ventrica, we help businesses focus on the customer experience to ensure peak demands can be met and customer satisfaction can be maintained or even exceeded. As you may expect, the companies we work alongside have carefully thought about their needs and identified outsourcing their customer service as a key part of their scaling strategy. We know that improving CX can make a huge difference for businesses, so what’s the link between customer experience and revenue scaling?

Understanding the Impact of Bad CX

There’s no hiding from it; poor customer experiences will lead to lost revenue. If your customers aren’t satisfied with the service and experience they’ve had, they’ll swipe, click, and walk (if necessary) into the arms of your competitors. This means bad news for trying to scale your business, so addressing CX should be high on any organisation’s to-do list. Customer retention is a huge challenge for businesses trying to grow, and if they can get it right, is hugely valuable for long-term success. This fuses customer experience and revenue together, as even just a 5% increase in customer retention can boost profits by as much as

So why do some businesses suffer from high customer churn? More often than not, it’s a poorly planned CX strategy or the lack of resources to bring it to life. Without the time put in at the planning stage of defining your customer experience, scaling becomes ever more difficult. How will you adapt during challenging moments? What happens if demand becomes too much for your company to manage? Do you have the resources to make it all run efficiently? These are all questions that need to be addressed at an early stage. Not only that, but how can you make it all happen without spending too much so that you can scale revenue and continue to grow? It’s not easy.

Getting the basics right with CX is key as it will help to tackle churn head-on, ensuring that poor CX isn’t the reason a customer chooses to move on. One of the additional benefits of reducing churn is the simple fact that investing in new customers isn’t cheap. In fact, it can be between 5 and 25 times more expensive to replace a customer than keep an existing one. The expectations of your customers are getting higher every year, and an increasing number of them will read reviews and ratings of your business before making a purchase or using your services. That one bad experience someone had can spread quickly, meaning not only an increase in churn, but customer acquisition can become problematic too.

It’s not as simple as just selling a product or service you know is great and letting the rest take care of itself. Customer experience impacts revenue, and scaling a business is almost impossible without improvements in this area.

How CX Can Help Scale Your Business

Being able to make your CX as ‘sticky’ as possible, where customers continue to come back and frequently purchase, is a key tactic. When you consider that 20% of customers can be the source of 80% of a business’s profits, it’s imperative to create advocates and improve brand loyalty. So, what happens when you achieve higher levels of engagement and peak stickiness?

• Wallet share and LTV – an increased share of wallet (SOW) from your customers means more money is being spent on your products and services than on a competitor’s. Improved CX ensures they maintain and even increase their wallet share over time, meaning their lifetime value (LTV) increases also. Better customer experiences keep customers happy in the short and long term.
• Sales opportunities – with an increased wallet share comes more opportunities for sales. Loyal, happy customers are more willing to try new products and services as they come along, helping businesses to further improve both the customer experience and revenue. The probability of selling to an existing customer is as high as 60-70%. This creates opportunities for both cross-selling and up-selling too, strengthening LTV
• Brand advocacy – when a satisfied customer speaks, people listen, so having a perfected CX approach helps create and improve brand advocacy. Your customers can help bring in more sales opportunities by being an advocate for your company.
• Sales through service – improved CX makes sales through service much easier. After all, a happier customer that is loyal to your brand will be more inclined to increase their wallet share with you. Having your sales team deliver on a customer-centric approach is key to this.
• Brand loyalty – overall, your customers will be happy to continue coming back to your company time and again if the CX is exactly what they need. As many as 61% of customers have turned their back on a brand after poor customer service, so a defined CX strategy is key to long term brand loyalty.

How to Improve CX

CX has a huge role to play when scaling revenue. Without a defined CX strategy in place, a business may never achieve its goal of reducing costs whilst maximising revenue. Fortunately, it’s never too late to start working on improving processes and making positive changes. At Ventrica we provide CX consulting for this reason, helping brands navigate the often complex world of customer satisfaction. So where do businesses need to focus?

• Being customer-centric – make understanding your customer a core part of your strategy. Without understanding what they want and what they need, being able to increase sales opportunities and strengthen brand advocacy is an uphill task.
• Gather insights – learn everything there is to know about your market and use these valuable insights to improve your service offering. This can be through surveys, feedback forms, NPS and much more.
• Listen and act on feedback – if a customer takes the time to provide you with insight into their thinking, they need to be listened to and heard. Respond and provide solutions that address their needs and look to make changes and improvements where you currently can’t meet expectations.
• Get the whole team on board – every part of the journey needs refining and that means all parts of your business have to be on board with a focus on CX. This means all aspects of your current service should be tailored to the needs of your customers
• Measure results – not only does great CX need to be delivered, but you also need processes in place to be able to accurately measure this. Without being able to analyse how well things are going, it can be difficult to know where to focus your CX efforts, so measuring results is key.

There are more ways than one to start making improvements with CX. However, if you are serious about scaling revenue and becoming a long-term, profitable success, you’ll want to focus on the most important aspects. At Ventrica, we can assist in identifying where improvements can be made and offer working solutions. From omnichannel services to BPO solutions that help you manage peak demand, we’re here to help your brand succeed.

To find out more, please contact us, and we’ll be happy to discuss your current CX challenges.