This is an adapted excerpt from InMoment’s new eBook “Evolving Your Customer Experience Program”
Even though it’s generally understood that experience management programs help businesses to be more efficient, profitable, and higher performing, customer experience (CX) professionals are consistently challenged to prove the economic impact of their programs. Whilst most CX professionals fundamentally believe that improving customer experience leads to improved financial outcomes in the future, proving this relationship can be quite difficult.
The number one question we’re asked at InMoment:
“How do I prove the value or return on investment (ROI) of my customer experience program?”
In order to secure the initial investment for a CX program or sustain funding, we know it’s imperative to link business priorities to a tangible return on investment, showcasing the unambiguous value of such programs to all stakeholders.
Whilst this is a great idea in theory, most enterprise-level businesses across the region are in the early stages of CX maturity and struggle to showcase a direct, tangible correlation between program and outcome.
Here are four tips for showcasing return on experience investment (ROXI):
Take a Snapshot of Current Business Performance
Before launching a CX program, try to document an accurate view of your business’s current state of play. How is your organisation currently performing in terms of call centre efficiencies? What is the current pulse of employee satisfaction? What is the current lifecycle of your customers?
Get Creative When Measuring Profitability
Think outside the box when it comes to showcasing ROXI. Consider what sort of revenue or profit proxies can be identified and measured. If you can show an impact to smaller variables, then the larger NPS number will improve over time.
Use CX Insights to Demonstrate a Decrease in Cost to Serve
After your team has collected CX data, their first priority should be to discover cost-cutting opportunities for the business. Are there redundant labour costs that can be cut down? Is there a certain area of the business that is draining resources from your call centre(s)? Finally, how much cheaper is it to serve happy customers versus unhappy customers?
Leverage a strategic partner to help
Technology alone won’t help with demonstrating return on investment. The most effective programs have a strategic partner to help map the initial CX framework, discover those actionable insights and point out the cost savings along the way. You need a motivated team behind yours to design the roadmap of experience management success. Best practices show that the financial impact of the CX capability is outlined in the onboarding process, tested and controlled along the way and measured and reported against quarterly.
Interested in learning more about measuring CX profitability? Download InMoment’s new eBook “Evolving Your CX Program” here.