Better Customer Experience (CX) Means Higher Revenue: Here’s the Proof
We’ve known for a while now that improving customer experiences has a positive impact on a business. When customers are happy, profits are up, loyalty increases, and the competition shrinks away in fear.
Until recently, the results of customer experience transformations have been tangible but difficult to track and manage. Without lengthy surveys that require active and thoughtful participation from customers (good luck with getting a large enough sample size for those!), quantifying CX and truly understanding the impact it has on a business’s bottom line has been close to impossible. That’s now changing.
Last year, Decibel formulated the world’s first all-encompassing metric for objectively measuring customer experience on websites, web applications, and native apps: The Digital Experience Score (DXS®).
What exactly is the Digital Experience Score(DXS)?
Powered by machine-learning, Decibel’s proprietary algorithms process hundreds of intelligent digital interactions – designed and built to measure online experience – and automatically calculate an experience score for each visit to a website or app. DXS reports can be accessed on individual sessions, pages, or the entire digital property, meaning you have full visibility into the quality of digital experiences at every level and can quickly identify opportunities to improve.
DXS is based on five pillars of digital experience: navigation, engagement, frustration technical and form experience. You can view scores in each category or look at DXS as a whole.
This year, in collaboration with world-leading tourism group TUI, we’ve definitively proved that a better DXS means a greater number of conversions and potentially millions more in revenue.
For the first time, not only can online experiences be quantitatively measured, tracked and bench-marked, but they can have a monetary value assigned to them.
Knowing this, enterprises can invest in customer experience with confidence and experience a fantastic ROI.
What does linking experiences to revenue mean for TUI?
TUI is a company that puts their 20 million customers at the heart of everything they do. In a highly competitive marketplace, they have maintained their position as the number one tourism group through their commitment to excellent service and providing an end-to-end holiday experience.
As so much of their business moves online, perfecting digital experiences quickly became a priority for their team. They then began the task of identifying key metrics for CX success.
“Putting customers at the heart of our decision making is essential; if we improve the experience for customers, we will drive greater commercial performance. The challenge is to find a measure that truly reflects the experience customers are having so we can improve pain points and create seamless journeys. Decibel’s DXS provides this measure.” – Hirra Sulanki Head of Digital Analytics, TUI
In collaboration with Station10, TUI and Decibel set out to determine if DXS directly correlated with TUI’s booking conversion rate and therefore impacted overall revenue.
After a lengthy study, it was discovered that even relatively small improvements in DXS lead to a huge rise in conversion rate and could mean millions more in revenue every year.
“With the proven predictability of DXS, we are able to correlate DXS to conversion and revenue. For TUI, an improvement in DXS from 5 to 6 could result in over $30 million in revenue per annum.” – Hirra Sulanki Head of Digital Analytics, TUI
What does DXS mean for you?
Focusing on improving customer experience should be a key part of your business strategy. What once presented itself as a “nice-to-have” has become an essential arena in which enterprises must compete. You can’t afford to let everyone else pass you by.
By utilizing purpose-built experience metrics, you can effectively manage customer experience and identify where the biggest wins lie. Decibel automatically surfaces experience issues and prioritizes them, so your digital teams can spend more time fixing what’s broken and less time trawling through surface-level data that’s only providing half the picture.
Who knows how many millions more in revenue your business could earn with improved customer experience?
Delve into the research with our white paper and discover exactly how we determined the strategic value of DXS and calculated the value of improved CX.