Making the Case for Compensation at the Customer Engagement Summit
By Blackhawk Network (BHN)
On the 28th of November, Engage Customer held their flagship Customer Engagement Summit, which brought together more than 1,000 CX professionals. In this piece, event partner and exhibitor Blackhawk Network (BHN) share their experience.
BHN is focused on helping businesses turn every customer interaction into an opportunity for growth. That’s why we were delighted to be an exhibitor at the Customer Engagement Summit held in London on 28th of November. As well as having a well-attended stand at the event, Leona Heymerdinguer, our Head of Customer Engagement, was invited to give a presentation about the role of compensation in promoting customer engagement. Leona was impressed with the interest it generated:
Amongst the great talks and presentations during the day, Jamie Thorpe, Head of Experience Management at Ipsos, gave a keynote speech - The Forces of CX - which reminded everyone of the power of customer engagement to drive growth. Leona said of Jamie’s speech:
This perfectly reflected the power compensation can play in boosting customer awareness which was the theme of Leona’s own talk. Independent research commissioned by BHN showed that 78% of customers would do repeat business with a company if their customer service is excellent – even after a mistake. What’s more, 83% of customers said they felt more loyal to brands that respond to and resolve complaints.
However, many companies who offer compensation aren’t getting the most out of that action. Why? Because they will simply credit the customer’s account with a payment. Doing this doesn’t make a connection with the customer, as it is purely transactional and often only shows up on a bank statement. Making amends by giving a gift card or voucher is more tangible. It will be redeemed by buying something – clothes, a meal, cinema tickets or the weekly shop – and that purchase and the benefit will be remembered positively.
Leona’s presentation explored this subject in much more depth and the event organisers kindly filmed the whole thing, so if you’d like to hear more about the subject you can click on the link below to watch.
The bottom line is compensation gives you a great opportunity to turn a negative experience that might have led to a bad review or a lost customer into a positive experience that not only helps to retain the customer but increases their loyalty and can even turn them into brand advocates. Leona summed up the presentation, saying:
At a summit where the role AI has to play in customer engagement was a major talking point, BHN’s presence and Leona’s well-received and popular session on compensation offered a valuable and well received counterpoint - making a pragmatic and provable case for the role of easily implemented compensation schemes in reducing customer churn and boosting long-term customer value and revenues.