3 reasons to invest in your digital customer experience
If you want to increase the value of your digital investments, think in terms of improving the digital customer experience. Yet there’s still confusion around what these terms are or even what outcomes you could expect. In this post, I’ve outlined three motivating forces behind investing in digital customer experience.
What do we mean by investing in digital customer experience?
When we talk with our customers and partners about digital customer experience, they are confused by the jargon. Investing in something vague sounds questionable, at best. But when we talk with them about the problems they’re facing, and how to solve them, they understand the value instantly.
The idea of looking at a business from the holistic perspective of improving customer experience online has radically changed how companies plan, design, and deliver their products and services. This integrated perspective cuts across boundaries like the user experience, the content users are consuming, the quality of hosting, and so forth.
As CEO of a growing digital services company, I’m seeing this change daily with our clients. One of the things we do first is a strategic analysis. In the same way that you’d conduct a technical site audit to see where your website could be performing better, we look at how the customer journey can be optimised.
The quality of customer experience is affected by everything users interact with: from the design or responsiveness of a website; to the ease-of-use of on-site search; to the seamless delivery in multilingual content; to how fast your website loads.
We also introduce the concept of a Digital Journey Roadmap with our customers. I find it’s helpful to frame a picture of where they are operationally and create a vision of where they want to be. Yes, companies can build really slick looking websites. But, can they respond quickly to market needs and roll-out changes soon after they get customer feedback? They often think this level of preparedness is out of reach financially and operationally. But it’s much easier now with tools like our Dropsolid Platform and Launchpad.
When everything is working well together, it creates a cohesive experience for site visitors. And this reflects on how they perceive your brand: as fast, responsive, speaking their language, and listening to customers.
The benefits of this approach are shown to directly affect your bottom line. Here are the three reasons to invest in digital customer experience:
1) Customer lifetime value will increase
Putting the customer at the heart of your experience is the best way to increase engagement and customer lifetime value or CLV.
Setting up a digital customer experience will help you connect with your customers in ways your competitors are unable to do so. It also will provide you with valuable market data on how they interact. This will help you predict and anticipate market needs.
Download our whitepaper about Customer Lifetime Value for more insiths.
Generating customer lifetime value and competitive advantage.
2) Customer acquisition costs will decrease
Attracting customers can be a challenge. Competition keeps increasing and perceived differences are often small. Traditional marketing methods and lead channels yield fewer and fewer qualified leads.
Did you know that customers who are promoters of your company (with NPS scores of 8 or higher) result in 40% more marketing qualified leads (MQLs)?
Download our whitepaper about digital customer experiences for more insights.
Learn how to build an integrated digital platform to connect with your customers.
3) Marginal costs will decrease
The cost to produce an extra unit (i.e. your marginal cost) will decrease, because it doesn’t matter if you have one single user or a million people using your digital experience platform. The cost of an additional customer on your platform does not increase linearly. Let’s consider the following examples:
- If a particular machine has a production capacity of 100 units and you need to produce 101 units, you will have to invest in two machines.
- If an account manager can serve a maximum of 20 customers and you currently have 25 customers, you need to have two account managers on your payroll.
- If a digital platform has one user, you essentially pay the same as if there were a million users. If your platform costs 1 million, the extra cost of user number 1.000.001 will be 99 cents.
Cost-wise, it doesn’t matter if your digital experience platform is serving a single user or a million people.
Managing and improving multiple channels and websites has never been easier, thanks to the platform. Knowing what to serve to which customer becomes easy.
Dropsolid has built hundreds of Drupal-based digital experiences and we have incorporated all our know-how into the platform. All the best practices of year and years working with only Drupal is packaged in this platform.
Looking to increase customer lifetime value and interested to find out more?