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Manufacturing companies are increasingly realizing the importance of customer experience (CX) in driving business growth. In the B2B space, CX can be especially important as manufacturing customers often have long-term relationships with suppliers. In fact, a study by McKinsey found that B2B companies with high customer satisfaction scores see 2-3 times the revenue growth of their peers. In my own experience having done three large CX transformations, I saw how customers experience lead to increase in revenue for those organizations.
Here’s how B2B CX can improve revenue in manufacturing:
Increased Customer Retention
One of the biggest benefits of a strong B2B CX strategy is increased customer retention. By providing exceptional experiences to customers, manufacturing companies can build strong relationships that last for years. This not only leads to repeat business, but also to opportunities for cross-selling and upselling. When customers are happy with their experience, they are more likely to purchase additional products or services from the same supplier. Also its cheaper to sell to an existing customer than acquiring new customs as well.
Improved Customer Loyalty
Loyal customers are the lifeblood of any business, and manufacturing companies are no exception. By focusing on the B2B CX, manufacturing companies can build strong bonds with customers that lead to increased loyalty. In turn, loyal customers are more likely to recommend a supplier to others, leading to new business opportunities and increased revenue. Especially in B2B space where more people are involved in the buying process, better CX will help them to stay loyal in the long run.
Increased Customer Lifetime Value
Customer lifetime value (CLV) is a measure of how much revenue a customer will generate over the course of their relationship with a supplier. By providing exceptional experiences to customers, manufacturing companies can increase their CLV. This can be achieved through a variety of means, such as providing personalized service, offering customized products, and providing exceptional post-sales support.
In today’s hyper-competitive marketplace, a strong B2B CX can be a key differentiator for manufacturing companies. By providing exceptional experiences to customers, manufacturing companies can set themselves apart from their competitors. This can lead to increased revenue as customers choose to do business with suppliers that provide a superior experience.
Improved Sales and Marketing Effectiveness
Finally, a strong B2B CX can improve the effectiveness of a manufacturing company’s sales and marketing efforts. When customers are happy with their experience, they are more likely to respond positively to marketing messages and to engage with sales representatives. This can lead to increased revenue as more leads are converted into customers.
In conclusion, a strong B2B CX strategy can have a major impact on the revenue of manufacturing companies. By focusing on customer retention, loyalty, lifetime value, competitive advantage, and sales and marketing effectiveness, manufacturing companies can create strong relationships with customers that lead to increased revenue over time. To succeed in today’s hyper-competitive marketplace, manufacturing companies must place a premium on the B2B CX and work tirelessly to deliver exceptional experiences to their customers.
Dasun Premadasa is the Founder and CEO of DASCX, the premiere B2B CX consulting firm for manufacturers in Australia. With over two decades of experience including four large CX and digital transformation programs at 4 different manufacturing and automotive firms in Australia, he's one of the best business technology experts for B2B customer experience.