The ROI of Customer Experience

The ROI of Customer Experience

Many people working in the CX field attest to one common challenge; getting the client agenda prioritised at the C-Suite. This is not a new challenge and it has been discussed in many articles over many years. Below is a great infographic and excerpt I found at http://loricarrassociates.com/. It gives a great summary of key fundamental components that need to be in place for CX transformation to take place in your organization. In my experience in this field, organizations that have embraced the customer agenda are not struggling with the what of CX but rather with the how. This will be our topic of discussion at the upcoming CX Day on 3 October 2017. Look out for where the discussions will be taking place.

 

  • Adopt a Long-Term View. Let’s stop chasing short-term, unrealistic, purely self-serving ROIs, and focus instead on CX strategy and outcomes that mature over a reasonable period to yield value for both company and customers.  Sustainable growth resides here.
  • Know Your CX Numbers. There are dozens of company financials but only a few CX metrics drive sustainable value in exponential ways. Focus on financials that foster growth, revenue and profits – quickly, realistically and predictablyCreate value for customers and you’ll get value too.
  • Choose CX Metrics Wisely. Many CX metrics are used to measure customer success, but only a handful will directly and unquestionably contribute to higher growth and revenues. Some metrics improve the top and bottom line in concrete ways while others are supportive.  You need to know the difference.
  • Emphasize Customer Lifetime Value (CLV). CLV can be defined as the total worth of a customer-company relationship over time; it is assessed by projecting the customer’s present value into the future, using a set of given business assumptions.  CLV is reliant on a continuum of ongoing relationships that compound the financial benefits of loyalty. CLV, the gift that keeps on giving.
  • Activate Financial Models & Revenue Estimators. What gets measured gets done and what gets done produces financial outcomes that can be monetized. Stimulate strong performance in high impact CX metrics and use predictive tools to model and forecast revenue, profitability and CLV.  Predict. Perform. Improve.
  • Employ ROI Calculators. The inability to correlate and calculate CX return on investment is the main reason these investments aren’t funded.  The right CX investments can and will yield ROIs in the 1,000’s of percent. Go ahead and prove it!
  • Insist on Cross Company CollaborationThe experience of customers is a highly interdependent endeavor across the entire company, so it makes good sense for leaders to share responsibility. Encourage inter-departmental partnerships and shared accountability to increase teamwork, performance and company growth.  Get on board.
Mumbi Odame

Customer Experience evangelist