Maximizing returns from your Customer Experience program
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Investing in customer experience (CX) is crucial for gaining a competitive edge, with evidence showing that businesses excelling in CX can grow revenues by 4-8% above the market. A structured approach to calculating the financial ROI of CX investments involves tracking customer metrics, implementing feedback loops, and integrating data across platforms. The expected ROI on CX investments is approximately $3 for every $1 spent, emphasizing the importance of addressing customer feedback and optimizing operations.
Maximizing returns from your Customer Experience program
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- 2. Why Customer Experience Investments should be profitable� “48% of CX pros believe that investing in Customer Experience gives them a competitive advantage”* “54% of customer service professionals strongly agree that CX is more important now than it was 2 years ago” * “Companies that excel at CX grow revenues 4-8% above the market”** Source: *https://www.clarabridge.com/blog/19-customer-experience-stats-2017/ | **https://www.ameyo.com/blog/customer-experience-statistics
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- 4. Calculating a financial ROI on CX investments is complex and it depends on many variables Data metrics like NPS® , CES, and CSAT scores help estimate a full-fledged financial return Taking a journey-based approach is an effective way to calculate financial returns
- 5. - The one’s that actually MATTER. “There’s a $3 return on investment expected for every $1 invested in the customer experience” Source: *https://www.clarabridge.com/blog/19-customer-experience-stats-2017/
- 6. The ROI testament Before jumping to numbers and profits, make sure that your CX framework is foolproof and flawless. Profitable ROI depends on 2 main factors • Timely response to specific issues raised by customers (inner loop) • Implementing strategic changes post feedback analysis (outer loop)
- 7. Calculating the financial ROI of CEM
- 8. 1) Track CX Metrics It provides valuable real-time data on the different behaviors exhibited by customers. This data is pivotal is estimating returns from CEM in the future 2) Effective Loop Closure Monitor customer feedback and act on it to implement feedback loop closure effectively.
- 9. 3) Integrate your CEM platform with CRM Link your CEM data with other business data so that agents are empowered with enough data to act on customer tickets, can implement follow ups and close the feedback loop on time. 4) Establish Success Metrics This is a fundamental step in setting up ROI. Tracking success metrics can give organizations concrete data-driven insights on improving aspects of CX where they lack competency.
- 10. 5) Financial ROI of CEM� • We can calculate the financial return of CX investments using this formula, • The final ROI figure, fuelled by data insights from NPS® , is an accurate measure of gains. Return on CX Investment = (Gain from CX Investment – Cost of CX Investment)/(Cost of CX Investment).
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- 12. Gains can be estimated by tracking the average spend by Promoter, Detractors and Passives. All the gains from a CX investment come from the increase in the percentage of Promoters. In order to strengthen gains, it is imperative to determine the life-time of a promoter
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- 14. Cost Of CX depends upon: • Human resources to track CX metrics • Human resources to close the inner and outer loop • Human resources to integrate CEM with CRM/ERP • Cost and Efficiency of your CEM software • Hardware to collect feedback • Hardware to close the inner and outer loop • Staff training costs for all CEM activities
- 15. In the U.S., the estimated cost of customers switching due to poor service is $1.6 trillion.* Surprised by how you can extract results from CX programs? Wish to know more? Claim your own copy of the ROI OF CEM “ROI of CEM handbook” Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. Source: *https://www.ameyo.com/blog/customer-experience-statistics