Customer Service ROI – The Numbers Behind Loyalty

by | Nov 25, 2024 | DoingCXRight®‬ Podcast | 0 comments

Doing CX Right podcast show on Spotify with host Stacy Sherman
DoingCXRight-Podcast-on-Amazon-with-host-Stacy-Sherman.
Doing Customer Experience (CX) Right Podcast - Hosted by Stacy Sherman
Doing CX Right podcast show on iHeart Radio with host Stacy Sherman

Are Your Customer Service Investments Actually Driving Loyalty and Revenue?

Are you struggling to prove the ROI of your customer experience initiatives? Do you know the true cost of losing a customer due to poor service escalation?

In this episode of Doing CX Right, Host Stacy Sherman and guest Neal Topf, President and Co-founder of Callzilla, dive deep into the often-overlooked mathematics of customer experience. They reveal why understanding the basic math behind customer service is crucial for making optimal decisions about technology, staffing, and customer journeys.

Key Questions Explored

  • What is the true cost of losing a customer due to poor service?
  • How do you calculate the right investment level for customer support?
  • When does AI make sense vs. human support in your customer journey?
  • How can you prove the ROI of customer experience to your CFO?

Critical Insights Shared

  • 74% of customers who have a bad call experience will choose another business next time
  • 50% of customers with failed escalations are lost to competitors
  • The importance of “Ease of Escalation” (EOE) in modern customer service
  • Why knowing your customer lifetime value is crucial for service decisions

Key Topics Discussed

  • The myth of the “easy button” in customer experience
  • Understanding customer lifetime value vs. service costs
  • Balancing AI automation with human touch points
  • The future of customer service segmentation
  • How to calculate and prove customer service ROI

Practical Takeaways

  1. Calculate your total customer lifetime value before making service decisions
  2. Consider the cost of losing customers when evaluating service investments
  3. Ensure clear escalation paths exist for all automated services
  4. Use basic math to justify CX investments to financial stakeholders

Book Recommendation

“Customer Experience 3.0” by John Goodman – Updated for 2024 with latest practices and metrics

Leadership Advice

  • Find mentors who have succeeded in customer experience
  • Learn from both positive and challenging experiences
  • Focus on both the art and science of customer service

Looking Ahead: Industry Predictions

  • Continued importance of human touch despite AI advancement
  • Potential consolidation among AI service providers
  • Evolution of service segmentation based on customer value

Press Play  To WATCH On Youtube

About Neal Topf:  

Since 2005, Neal has led Callzilla, an outsourced contact center providing customer care and customer acquisition to top brands. Clients work with Neal to improve the customer experience, add channels such as live chat, gain market share among English and Spanish speakers, and more. Numerous examples are available on his website, callzilla.cx 

Connect with Neal on LinkedIn. 

About Stacy Sherman: Founder of Doing CX Right®‬

Customer experience and marketing global keynote speaker and advisor author of the award-winning DoingCXRight podcast. Known for her Heart & Science™ framework that helps you gain profitable clients and brand loyalty–fueled by an empowered workforce. Stacy’s been walking the talk for 25 years as a strategist and practitioner at companies of all sizes and industries, i.e., Liveops, Verizon, Schindler Elevator Corp, Wilton Brands, and AT&T. She’s also a board advisor at multiple universities, featured in Forbes and other top-rated publications.

Her Why: To cultivate loyal relationships and meaningful experiences that enrich people’s lives. Contact Stacy for DOING Customer Experience (CX) and Service Right, not just TALKING about it. Continue reading bio >here.

Keyword themes: Doing CX Right podcast business customer service  sales customer. customer service ROI    

Are you Doing Customer Experience (CX) Right?

*All views expressed are Stacys and do not reflect the opinions of or imply the endorsement of employers or other organizations.

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