Welcome to the 41st edition of the CX by Design Ideas newsletter. This is a monthly mailing by your hosts, Lis Hubert and Diana Sonis, where we focus on sharing human-centered ideas for business. This month, we’re discussing how improving the customer experience can improve profitability.
Good CX Is Money in the Bank
It’s a sad fact that CX can be a tough sell in some industries and organizations. There are many reasons why, starting with a poor understanding of CX (or how CX is different from customer service). Ultimately, CX can feel like a nice-to-have rather than a must-have. So how can CX professionals communicate the importance of their craft?
CX Value by the Numbers
We can start by emphasizing how CX can save and make money. Stats are your friends here. Take a look at these:
Increased revenue: 86% of customers are willing to pay up to 16% more if there’s a great customer experience. Customer spending increases by up to 140% following a positive experience.
Reducing costs: Improving CX can shave 33% off customer support spends.
Brand reputation: 64% of customers are more likely to recommend a brand that offers amazing experiences. 
Customer retention: 66% of businesses that prioritize customer experience see increased retention. 
And here’s a big win: 64% of consumers consider customer experience to be more important than price. 
And there’s another key fact about customer retention: It costs six times more to make a new customer than to keep a current customer. Good CX is essential to keeping customers.
So just how does CX work its magic?
Making money by reducing friction
CX, by its very nature, works to make a better customer experience. By eliminating pain points along the customer journey and making transactions as smooth as possible, it makes it easier for customers to achieve their goal.
Let’s borrow an example from basic physics. Imagine you’re pulling a heavy box across a rough surface. The friction between the box and the surface slows you down. It makes it much harder to move the box, which means you exert more time and energy.
But once you get that box on a smooth surface, you can move it along easily. Your task is the same, but the process is much less onerous. You feel better about the whole thing. You might even volunteer to slide the next box along the floor because it was so easy.
In essence, this is exactly what CX does: it removes friction, making completing the task easier. Thus, it increases customer satisfaction and loyalty. It can also increase employee productivity for exactly the same reason – when their jobs are less complicated, they can complete more tasks using less time and effort.
Check out the links in Around the Web for more information on calculating ROI for CX, selling leadership on CX, and explaining the difference between CX and customer service. And as always, feel free to reach out to us if you need help reducing the friction in your CX journey.
QUICK TIPS TO POWER UP YOUR CX
Bite-Size CX: Find a Pain Point
It’s easy to get so familiar with your company’s offerings, customer-facing processes, website, etc. that the details get lost.
This month, work on uncovering one customer pain point and brainstorming ways to solve it. You can find pain points by:
Directly asking customers (e.g. through a survey or feedback form).
Asking your customer service department or sales team about any recurring issues or complaints.
Checking out what customers say about your business online.
Using your company’s website or app and noting any problems you have.
Once you find a pain point, write it down. Then take some time to think about what’s causing it and how you want to resolve it.
During our recent ProductBoard webinar, we had several excellent questions from the audience that time didn't allow us to answer.
We're excited to announce that our followup article, 7 Insights on Creating Human-Centered Solutions, is now live on the ProductBoard blog. We talk about ideas for managing relationships and expectations, human-centered design vs. design thinking, and more.
Wondering how to up your CX without breaking the bank? Learn how getting back to basics – customer segmentation, journey mapping, etc. – can help your company’s customer success and CX during tough economic times.