By Melati Belot & Shayna Stewart, October 7th
The CX Multiplier is a tool to help brand and marketing professionals make the case for CX and drive exponential returns on their marketing spend.
See how it works 👇
Take a moment and think about a few of your favorite brands 🤔
Okay, now, why are those the ones that popped into your mind?
It’s likely they made the cut based on a first-hand experience with the brand or perhaps even an emotional reaction you had to that experience.
Yes, brands can cause an emotional reaction outside of tear-jerking or laughter-provoking Super Bowl spots. Those emotions can range from relief and a feeling of being understood to frustration and even abandonment.
(hello, broken [brand] promises)
Beyond getting over that first emotional brand hurdle, what makes a good brand experience?
Do what you say you will do. Be the brand you say you are. Or, in other words: cut the B.S.
Today’s thriving brands live up to their external persona by backing it up via the service and technology experience. It’s an unmistakable attention to detail, such as personalized or customized attention, making things easier on customers, acting with empathy, and responding to a situation on a customer’s terms.
Case in point, Nordstrom may serve as one of the best examples of a customer-centric brand that has empowered it’s customer experiences with technology to create value-adding services (sometimes even creating a “want” that customers didn’t even know they had).
Buying via Text
Nordstrom shoppers can receive tailored purchase recommendations via text or Messenger. Their TextStyle allows a sales representative to text you a product photo and/or description of a product. All you have to do is respond with “buy” and a unique code and it’s all yours.
Reserve & Try
Select and reserve your desired items online and within two hours you’ll be notified via text that your potential purchases are ready to be tried on at the nearest Nordstrom. No purchase remorse, here.
Buy online and bypass annoying shipping delays. Simply text the store when you’re close by and have your new purchase delivered right to you.
Talk about convenience and knowing your audience.
A fast and reliable experience thanks to a PWA
Nordstrom rebuilt their mobile site as a React Progressive Web App for their 20 million+ monthly visitors to deliver a faster, more reliable and more engaging experience.
By the way, Nordstrom is not the only company that uses a PWA. Take Walmart, for example:
These services now define the Nordstrom difference and even made their way into one of the most critical customer communications, holiday TV campaigns.
All of these seemingly minor touch points are additive and create the overall customer impression of a brand. Therefore, especially in today’s digital-centric world, customer experience (CX) has become synonymous with a brand.
As a marketing or brand professional, it may be hard for you to internally make the case for better CX because at face value it may seem outside the swim lanes of your typical responsibilities.
Marketing and advertising are historically the best ways to broadcast your brand to the masses, and remain vital today.
However, YML’s array of experience with brands ranging from retail to fintech, auto and even healthcare proves how powerful insights that could improve pain points and key moments are often lost in translation or disjointed from the reality of the experience, resulting in decreased efficiency and impact of dollars spent.
Therefore, CX becomes both everyone’s responsibility and more importantly — opportunity:
That’s why we are introducing the CX Multiplier to help you demonstrate how CX elevates your brand and makes marketing more efficient.
What is it?
The CX Multiplier is a simple way to think about return on CX initiatives that relates back into marketing and business KPIs. It measures the impact of the improvement of product retention on marketing and business KPIs.
There’s two phases where the multiplier happens:
- Improvement of Business Metrics
- Increased Competitive Marketing
1/ Improvement of Business Metrics
As digital product strategies improve retention, they in turn improve two important business metrics:
Needless to say the more times someone comes back, the more possibilities there are for monetary touch points.
In addition, better digital products elicit more trust from people and therefore open the opportunity for the brand to widen the net of products the person buys from the brand.
Both of which increase customer lifetime value.
If the product’s retention is improved, payback periods are lessened. Which means you make the money you have invested in acquiring new users back faster.
A quick example of this:
You spend $100 acquiring 10 new users. Of those new users only 2 buy your $10 product in the first visit ($10*2=$20 in sales total). Those same two visitors are retained and come back every month to buy again. In this case, the payback period is 5 months ($20*5 months=$100). Let’s say your product doubles retention and you have 4 people who buy your product to amount to $40 in sales and they also come back every month. You will receive your payback in 3 months (plus some!). The money acquired at a faster rate means access to more money sooner to reinvest.
2/ Increased Marketing Competitive Edge
As these two business metrics improve, these marketing metrics will improve:
Because returns are higher from the uplift in business metrics, the team now has the ability to increase the cost for acquiring new users, in other words, increase marketing spend.
If you are making more money from acquiring a new user, you now have more money to spend on acquiring the next. With the value of the customer increased, you can bet marketing spend can be increased.
This allows marketing teams to spend more in competitive environments and even branch out into emerging platforms.
A More Efficient Reach
As your user base increases due to more retention, the reach of your retargeting and email campaigns will be improved. This is the marketers main goal — expand reach efficiently.
In this light, you can think of your digital product as driving a whole new marketing audience, instead of trying to seek out new audiences from 3rd party vendors.
Secondly, as you have more customers, you have more people that are inviting or talking about the product helping to convert new users into your product for free!
The key to making this a success is that the digital product and services must back up the marketing, otherwise the new user base won’t have nice things to say. When your acquiring users for free or a through a small incentive such as a discount, that means higher business metrics and more opportunity to increase CAC once again.
CX Product & Service Improvements > More People Retained > Earnings for Business > Marketing Increases > More Acquisition
All of these improved metrics are underpinned by an improvement of your customer-centric product strategy. This often times is missed when your teams are siloed or you have disconnected data sets.
How can you implement a CX Multiplier Strategy?
They key to unlocking the CX Multiplier is embracing holistic adoption of a people-centric culture.
The organization needs to align on a unified data strategy that can measure the CX impact and then each department and partner should be briefed either on improving or communicating the brand promise through CX.
About the authors
Melati Belot, Director of Client Engagement
Serving as Director of Client Engagement, Melati’s focus is on driving thought-leadership, strategic planning and creative excellence for our partners. With experience spanning brand and product development, digital, broadcast, social media and influencer marketing, Melati believes that the key to unlocking customer connection, loyalty, and advocacy is day-to-day interactions and customer-centric experiences.
Shayna Stewart, Product Manager
Shayna is passionate about consumer-centric product strategy and design and an advocate for consumer-centric data strategies to match.