Focus Your CX Dollars on the Right Drivers and Experience Optimal CX Return on Investment
The CX market is experiencing an over-saturation of maturity models that assess how well your company is performing in terms of CX. These maturity models do provide value, but too often they are based on a CX firm’s experience, rather than hard, empirical data. Using a data-driven model is critical to accurately identify where CX teams need to focus future improvement. These models also fail to answer two critical questions that funnel all the way to the boardroom: (1) How are these CX programs making your company more money? (2) How is your CX spending improving the organization’s success with customers?
Leadership needs data and evidence about how your CX strategy will provide a legitimate return on investment, contribute to the organization’s bottom line, and create satisfied, loyal customers. As a CX professional and valuable member of your organization, consider the following CX strategy for your future CX initiatives: build a concrete business case and use a CX success frameworkbacked by real data. You will find that both strategies answer the questions regarding CX ROI and customer satisfaction.
Build a Concrete Business Case
Before a CX program is implemented, the right initiatives must be identified so you invest your CX dollars where it counts. Your CX team needs a concrete business case; in fact, not having a business case often impedes buy-in from leadership. A CX business case provides measurable targets, tied to expected ROI gains that will hold both your team and your CX program accountable, while helping the organization plan for revenue and future CX investments.
When you build a business case, use a CX framework that identifies your organization’s current stage of CX successand links that stage to best practices backed by industry-validated methods. Also, make sure each practice is tied to ROI and improving the actual customer experience. Leveraging a framework like this will help connect your company’s roadmap to maximizing return on investment.
Use a CX Success Framework
Many CX teams use maturity models to identify their current level of CX performance. Why not take it a step further and identify a CX management firm that will tangibly drive your CX success forward, partnering with your organization for YoY financial improvement? Your CX framework should be based on the correlation between profitability, NPS, and customer retention, so you can track your progress with key financial drivers.
The framework’s correlation to profitability and customer-centric metrics is essential to driving adoption and buy-in at all levels of your organization. Use a balanced framework that considers both the financial return and customer experience impact. The goal is to implement the optimal CX program that drives both, because they are both critically important to the long-term success of your business.Remember the purpose of a CX framework – to make your business the place customers choose because they know their experience matters to your company.
Armed with a concrete business case and CX success framework, you can begin implementing CX processes and programs that will drive both financial results and satisfied customers. Organizations need data and evidence on how their CX strategy will integrate into the overall company roadmap and contribute to the bottom line. Don’t let your organization fall into the common CX traps of no financial business justification, ignoring proven best practices, and a failure to track process execution. Use a methodology that will offer more agility and flexibility and will drive the right actions for results – it is mission critical for your organization’s success and the loyalty of your customers.