If you’re reading this, we’re assuming you’re on board with the importance of CX (if not, read this post on B2B CX stat!). But even when you understand the role CX plays in business success, you still likely feel the increasing pressure to show proven ROI from your CX investments. If that has you nodding your head, you’re not alone. Even the most specialized CX professionals are struggling to navigate this.
According to researchers at Forrester, 60% of CX leaders struggle to demonstrate ROI. Deloitte Digital found that, while two-thirds of CXOs track customer satisfaction, many fail to track their retention rate, which ties directly to their company’s bottom line (more on how to do that soon). And when you can’t demonstrate measurable ROI, it’s harder to convince your money-minded leaders to invest in CX. In fact, CX leaders say their top obstacles to investing in new tools and services are:
- Demonstrating ROI
- Securing the necessary budget
- Getting buy-in from internal and external stakeholders
Notice, all three obstacles are interrelated. So, measure your CX—and do it in a way that makes it easy to prove ROI. Enter: Net Promoter® Score (NPS®) satisfaction surveys that track customer satisfaction. Numbers don’t lie, and an overwhelming majority of B2B firms that work with ClearlyRated to run their NPS surveys report a positive ROI. Here’s what you can learn from them.
Prove ROI from CX Investments — Here’s How
Below are five ways ClearlyRated clients have used their NPS survey program to prove ROI from their CX efforts.
1. Identify and save at-risk accounts.
When B2B firms make an effort to gather feedback from all their clients, they have a better chance of identifying which ones are unhappy. The fact is, many people feel uncomfortable sharing negative feedback face to face, but they will share their true feelings via an impersonal survey. And that’s good news!
Once you know a client isn’t thrilled, you have a chance to make things better—and many ClearlyRated users have proven ROI by not only retaining revenue from at-risk accounts but also building even more loyal customers afterward. This phenomenon even has a name. It’s called the service recovery paradox.
<< Get tips for service recovery tips for B2B firms here. >>
2. Clearly differentiate from the competition.
When firms point to a well-recognized and objective metric like NPS to prove customer satisfaction, they can better stand out amongst competitors in their market. ClearlyRated clients that earn NPS ratings above their industry average highlight this in marketing materials and sales proposals, earning trust and business from their prospects.
Keep in mind that not only will B2B clients choose one firm over another based on its reputation for a good CX, but according to Forrester research, 73% say they would even choose a more expensive firm if it means they’ll have a better experience.
<< Check out our NPS benchmarks by industry. >>
3. Attract new customers with verified third-party ratings and reviews.
A demonstrably good CX helps firms gain trust from potential customers and stand out from the competition. Third-party verified star ratings online reviews can help you do that. In fact, more than 80% of B2B firms trust online reviews when making their purchasing decisions. This is especially meaningful for smaller firms.
Time and again we’ve heard from our smaller-sized clients that the third-party validation provided by reviews and ratings, along with their ‘Best of’ award, both puts them in the ring and improves their odds against larger competition.
<< Get guidance on managing your online reputation. >>
4. Identify opportunities for account expansion.
Expanding revenue from existing accounts is a solid strategy for business growth, and it’s essential in competitive markets where earning net new customers is getting harder. Surveying current clients about their experience has helped ClearlyRated clients do just that.
They use NPS surveys to identify their happiest clients, ones that are more likely to hire them for additional services. Recently, many ClearlyRated users have taken this one step further by using a new feature coined the “expansion question.” Within their NPS survey, they ask responders whether they have any new business needs and if they’d like someone to reach out to them. This effectively turns their NPS surveys into high-quality lead generators.
<< Learn how one firm uncovered cross-selling leads and profitable new services using its NPS survey. >>
5. Close more deals with customer testimonials.
On average, nearly half of a company’s happy customers will write testimonials. ClearlyRated clients report using these recommendations of their services in their marketing materials and when meeting with potential leads. Letting satisfied customers do the talking can help you close more deals too.
Bonus ROI: Leaders can boost employee morale, retention and productivity by sharing shout-outs and good news generated via NPS surveys.
Bottom-line key performance indicators (KPIs) helped by a positive NPS
Companies that improve their CX have seen their sales revenues improve by up to 7%, raising their profitability by up to 2%, according to a McKinsey report. And their overall shareholder return increased by as much as 10%. Clearly CX is an essential component of business success, but you can only prove that by tracking the right CX metrics—ones tied to your bottom line.
If you’re on a journey to improve your CX and want to measure it with NPS (i.e. your customer satisfaction), then we recommend also tracking the following KPIs to prove ROI:
- Customer lifetime value (CLV) – As you keep customers for longer and even expand services within their accounts thanks to a better CX, your overall CLV will rise.
- Cross-selling rates – When you improve your CX, you’re likely to have more customers expand their business with your firm, making those revenue streams into revenue rivers.
- Customer retention and renewal rates – When your churn rates go down, the constant struggle to acquire new customers becomes less of a burden. Plus, when you can tell potential customers that your current ones have long tenures, it helps prove that you’ll provide great service.
- Online rating average – B2B firms trust online ratings and reviews, so improving your online ratings can support customer acquisition. Plus, this metric will be one of the first to improve as your CX does.
- Lead conversion rates and customer acquisition cost – Good ratings, positive reviews and glowing testimonials are likely to make it easier to close deals. As your lead conversion rate improves, your customer acquisition cost will go down.
When you improve your CX – and can show provable ROI – everyone wins. Your customers are happier, and your organization makes more money. Plus, as your leaders grow more confident in your efforts, you’ll have an easier time justifying your investments and securing the necessary budget.