Expanding Customer Cross-sell Revenues through Customer Experience Transformation
Most CRO’s and C-Suite members expect that a good customer experience will help their customer cross-selling efforts – but few companies can forecast the impact so that the CX efforts can be analytically compared to traditional sales or marketing improvement efforts.
We have been fortunate enough to work with dozens of companies to benchmark and realize more than $25 Billion of revenue from CX transformation – and wanted to share our experiences and insights to ensure that CX Transformation stays on the C-Suite Agenda – where it deserves to be.
CX-Driven Customer Cross-selling Growth Benchmarks
There are several areas where improving customer experiences will positively impact customer acquisition efforts, including:
1) Executing a “Land & Expand” during the shopping process
2) Positive word-of-mouth that improves the consideration and selection of other services
3) Improving the Support experience to drive loyalty and expanded revenue/customer
Benchmarks
Every company is different – in terms of its growth trajectory and competitive situation – but our experience with dozens of B2C and B2B global leaders has proven to identify and deliver a 39% average improvement in company revenues through customer cross-sell improvements as shown below.
Some examples of our experiences in these areas include:
EXECUTING A “LAND & EXPAND” STRATEGY FOR NEW ACCOUNTS – A temporary staffing agency filtered their VoC data based on the lifecycle stages of hundreds of their accounts. They had executed a “Land & Expand” strategy to secure an account with a core offering and expand their footprint by delivering outstanding experiences and pitching additional services. Accounts that received the “target experience” delivered a high NPS assessment and much higher YOY revenue increases. Unfortunately, not all accounts received that experience, and those that didn’t had much lower Year 2 revenues. The differential was nearly 150% increase in revenues from delivering the “target experience” which guided the CEO to improve training of sales and delivery teams, revise hiring and promotion criteria to embed experience delivery standards and put an “Experience Audit” process in place to assure that every account was getting the same great service. These changes were relatively low-cost but transformed revenues and the delivery culture that led to a 400%+ ROI of the effort.
IMPROVING THE SUPPORT EXPERIENCE – An IT Services firm initiated their Voice-of-the-Customer program to create a common set of customer priorities needed to align their sales, marketing and product leadership. Product Capabilities were the clear #1 driver of their willingness to recommend their company, but Service & Support was the #2 driver of loyalty and the #1 interaction experience. Like most tech companies, the support experience wasn’t great for everyone. For those with a great support experience, they gave the company an NPS of over 80. For those with a sub-standard support experience, it was a -20, a 100-point difference. This impacted account revenues, with 55% higher revenues for those receiving a great support experience. Connecting the Support Experience to Improved account revenues provided the VP of Support with the analytic foundation to secure more resources, training and automation to deliver improved support results and improved revenues to the company.
LEVERAGING POSITIVE LOYALTY TO ADDITIONAL PRODUCT LINES – An electronic component manufacturer had improved their customer loyalty through a series of CX programs and was looking for a payoff. Voice-of-the-customer data integrated with their account revenue database identified that many of their happy customers were only using a single product category they offered and had not tried any of their 6 other product categories. Discussions at Trade shows and customer dinners found they didn’t know much about the other product lines and were very willing to consider them given the outstanding service and great product quality they experienced on their core product line. Proactive account-based marketing and revisions to the sales toolkit activated a cross-sell campaign that delivered 50% more revenues per account in the following year.
Building the Business Case for Increased CX Investment and Impact
Building the business case needs foundational customer experience data, a well-defined process and experienced leadership in order to overcome challenges and successfully navigate the skepticism that exists in most organizations for a cross-functional, transformational effort.
Our business case development process uses the following 5 stages, executed in a fast-cycle, agile manner to build buy-in and momentum.
This process can be conducted in a few weeks to build the business case for CX activities and ensure that CX Transformation stays on the C-Suite Agenda – where it deserves to be. Find out more at www.tucker-co.com.