by Brad Banyas | 9/8/15
Is your organization so intently focused on lead generation and customer acquisition that you are ignoring your most important customers … the ones you already have? It is ironic that organizations often spend millions of dollars and thousands of hours to acquire new customers only to do very little to manage and enhance their ongoing experience once they are on board. Beautifully designed marketing campaigns attract new customers, but boring communications that fail to engage and enhance soon work to erode the customer experience, inhibit your ability to up-sell and cross-sell, and threaten brand loyalty over time.
Managing Customer Experience
The concept and discipline of Customer Communications Management (or CCM) is not a new concept, but it is one that many organizations may not have fully understood or embraced. The idea is to advance the way that you communicate with existing customers through the use of common transactional documents like statements, explanations of benefits or account notices. These transactional documents provide a unique and often overlooked opportunity to connect with customers in ways that extend the brand experience and leverage the existing relationship for improve revenue opportunities.
Clear product and service differentiation becomes harder to articulate as mature verticals and business lines such as financial services evolve. Customer Communications Management therefore becomes a critical initiative requiring a well-thought roadmap that is executed at every level of the organization. The aim is to execute superior experiences at every customer touch point, building interaction and engagement from transactional communications and ongoing customer correspondence that would otherwise be regarded as routine or perfunctory.
Customer Communications Management presents a significant opportunity for growth within your existing revenue base through sustained and personalized customer engagement. As a result, CCM is getting a lot of attention, and for good reason. Research confirms that managing and improving customer experience drives revenues and saves costs. Here are just a few data points to consider:
· It costs 6 to 7 times more to acquire a new customer than retain an existing one – Bain & Company.
· Price is not the main reason for customer churn, it is actually due to poor quality of customer service – Accenture.
· The probability of selling to an existing customer is three times greater than selling to a new prospect – Marketing Metrics.
· 70 percent of buying experiences are based on how the customer feels they are treated after they become a customer –McKinsey.
· A 5 percent reduction in the customer defection rate can increase profits by up to 95 percent – Bain & Company.
Consolidating Communications in CCM
Clearly, CCM is an important opportunity. What is the path forward for companies looking to boost customer experience through everyday customer communications? One way is to look to the converging developments in CCM that provide the ability to communicate with your existing customers in new and more profitable ways. Strategies like personalized content, targeted campaigns and custom messaging extend the marketing and engagement value of customer communications in ways that were simply not possible in the past. CCM campaigns that coordinate your message across multiple customer touch points can uncover where to best direct your efforts and investments in order to maximize your results.
The good news is that cloud-based multi-channel communications tools provide a single platform to manage all of your customer communications no matter what form they take. By consolidating communications in CCM financial institutions can truly manage the customer experience and drive deeper levels of customer engagement via transactional, marketing, and social communications. Embracing CCM will not come without challenges, but the right mix of technological tools and thoughtful strategies will lead you to a new generation of success.
Brad Banyas is CEO of OMI, a leading cloud-based customer communication management service and platform provider. OMI delivers cost-effective solutions for marketers and brand managers to connect with customers through the OMI platform. The company boasts a roster of customers that include financial services, healthcare, manufacturing and nonprofit verticals. To contact Brad or learn more please visit www.omi.co.