Statistics show that companies with a CX-centric mindset drive higher revenue of 4-8% than their counterparts. There are many more studies that prove customer experience is an inevitable factor to boost revenue and spur growth in a business.
But, how can you precisely correlate and identify how emotions of customers impact revenue? That is to say, how do you know the exact ways in which CX impacts business revenue for better or worse?
The answer is quite simple. Linking your CX data with revenue data will provide you an insight into how customers alter their spending patterns based on their perceptions of the brand.
In this article, we are going to highlight two major aspects to help you identify and analyze it.
1. Know the kind of feedback that drives your revenue
Customer Experience (CX) is defined as the overall perception that results from total interactions that occur between customers and the brand throughout the journey. It goes without saying that emotions are a factor embedded in the definition.
Emotions play a significant role in determining purchases as it’s a strong factor that affects both conscious and subconscious decisions of customers. If your brand delivers a “WOW” factor that delights customers, there’s a higher potential to earn more revenue. Moreover, customers also tend to be more forgiving of brand’s mistakes if they are emotionally attached to it. So, emotions are perhaps the best type of feedback to link to revenue growth.
It is emotions that best capture the quality of customer experience delivered by your business. While CSAT is a metric that taps into an emotive aspect of consumer behavior, it is more inclined towards satisfaction which is only a facet of CX. Therefore, you can design surveys that aim to measure or assess customer emotions at various touchpoints.
Then, it’s important to connect every response gathered by customers with the purchase size, so you can understand how emotions have determined purchase behavior specifically. This is a useful method to understand how CX impacts revenue.
2. Know what should be the KPI score that drives your revenue
Conventional CX metrics like CSAT, NPS, and CES are primarily focused on gathering feedback related to rational experiences. So, you need a better alternative that’s capable of tapping into the emotions of the customers – thereby assessing the overall perception.
Emotional Value Index™ is one great option available. Although it’s a complex phenomenon, EVI™ makes it possible to utilize a multi-dimensional approach and measure emotions. In this method, emotions are clustered as per the amplitude of the emotion. In order to measure EVI™, you have to use surveys that ask customers to specify their emotion based on an interaction. If you want to learn more about EVI™ and how to measure emotions, click here.
When you link the responses of these feedback surveys to purchase size, you will be able to understand how exactly emotions affect revenue. More importantly, you understand what kind of emotions drive revenue!
You would already be familiar with CX metrics like NPS and CES and how it’s connected to revenue growth as we have discussed in many of our previous article. This is why we wanted to show you a new dimension of building a correlation between CX and revenue.
Although EVI™ is a relatively new concept, CX leaders believe that it’s an essential component in your CX strategy. It is also more effective in capturing the overall experience very well. While it may not deliver acute results, it would give you a near accurate idea of the role played by customer emotions on the revenue of your business.
Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland – Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.