Hats off to Dan Hesse, the one-time CEO of Sprint, for summarizing why investing in the customer experience is so important.

A good customer experience is actually less expensive to provide than a poor one and customers will pay more for a good one than for a bad one. Nothing drives profitability like an excellent customer experience does. – Dan Hesse

  • Is it actually less expensive? – If you win a customer only to lose them because of poor service, your company wasted marketing expenses.
  • Will customers pay more? – Numerous studies have shown that customers pay more for better customer experiences. So companies that deliver a superior service can charge (and deserve) more.
  • Does it really drive profitability? – If costs go down and revenues go up, profitability increases.  QED.

The pivot point is that to reap the rewards of positive customer experiences, companies must treat them as an investment and not a cost. Plus you’ll make people happy in the process.

Investing in the Customer Experience Matters
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  • Faryal Mehdi

    We couldn’t agree more! Investing in customer experience never goes to waste.

  • Couldn’t agree more! It’s a pity that some businesses might think of customers as a burden instead of understanding that they owe their very existence to their customers. Investing in customer support and the customer experience can not go to waste – ever!

  • Thanks for the comments Faryal. You may enjoy a post I wrote years ago titled: Cutting Costs vs. Saving Money. It shows a subtle yet important distinction between the two. http://pivotpointsolutions.net/2009/08/25/cutting-costs-vs-saving-money/

  • Sheraz

    Hey Andy,
    Investing in Customer Support could mean purchasing online solutions like zendesk, devcontact.com etc to help manage the issues lodged effectively and quickly? Or you only meant giving enough time to your customers?

    • Shameless plug aside, I mean that companies can’t afford to be penny wise and pound foolish. To take an extreme example, a company could try to handle issues on index cards – no doubt that is less expensive than zendesk or devcontact – but such a simplistic solution would be doing a disservice to a company’s customers (and shareholders and employees).