Most CEOs state that Customer Experience is a differentiator for competitive advantage. If perfected, it becomes difficult for the competition to fast follow. In addition, most leaders see a direct correlation with driving growth, profit, and valuation. Product and operational excellence strategies only provide short windows to accelerated growth. Given this new level of support, you would expect high levels of results. The NTT Ltd.’s Annual 2020 Customer Experience Benchmarking Report shows that only 26% of participants feel CX is defined and tracked in their organizations. The number one reason why CEOs abandon their CX strategy? The inability to identify, measure, and provide leadership visibility to CX ROI. Many enterprise CEOs realize this opportunity and are doing things differently.
This article will help leaders measure the ROI of CX. Also available is the Revenue Growth Diagnostic for Customer Experience. This is an assessment to score CX readiness. Tying CX to business objectives is the key. Knowing which metrics to track that will drive strategic decisions is another story. Let us discuss how market leaders are helping measure their efforts.
Organizations with more than $1 billion in revenue have 40 plus CX measurements. This becomes even more complicated when managed by different people in different functions. The use cases vary across the customer lifecycle, making it challenging to understand the impact.
Get started by using this framework for a guide on how to organize and drive a Customer Experience Mindset throughout the organization.
Create a Vision and Strategy
A customer experience vision gets everyone on the same page. It provides a north star for everyone to work towards. It also defines the customer outcomes and the process of achieving those outcomes. This eventually brings clarity to the metrics you select to measure ROI.
Launching and maintaining a successful customer-focused culture and a top-down philosophy of governance is critical. This must come with support and backing from the CEO and Executive Leadership team. It will assure sustainability and a long-term shift instead of a short-term fad.
Conduct a Touchpoint Analysis
Touchpoint analysis provides insights into how customers interact with your brand. Performance across every touchpoint is evaluated, and guidance to design the ideal experience. Done correctly will provide direction on the reallocation of people, time, and money. A baseline is then created for measurements at key moments of time in the lifecycle.
To improve customer experiences, an organization must know two things. First, a memorable experience must be designed from the perspective of the customer. Second, they must monitor how well they deliver that unforgettable experience. Below are a few KPIs to get you started.
- Customer Satisfaction (CSAT): This is one of the more commonly used metrics to measure how satisfied your customer is with your product/solutions. By collecting data at various touchpoints of the customer journey, you can determine specific actions to take.
- Net Promoter Score (NPS): This gives you an overall view of customer advocacy to evaluate the willingness of a customer to recommend and/or endorse your solutions. However, there are limitations if not interpreted correctly. For example, a rating of “6” in EMEA vs. the US has a different interpretation.
- Customer Effort Score (CES): This speaks to the ease in which a customer can complete any given task. It answers the question, “how easy/difficult you are to do business with?” This score can provide insights into digital maturity. For more information, this article is helpful when thinking about implementing a digital strategy.
A disciplined customer experience measurement program is essential for companies to provide clarity into which parts of the experience are working and those that need to be improved. By applying them at appropriate stages with the most important customers is critical. Customer journey analytics and data can play a vital role in this endeavor to provide a journey-driven perspective and improve ROI in customer experience measurements. You can learn more about implementing or optimizing a CX strategy here to find a full range of content, tools, and articles to get started or download this tool to build and execute a best-in-class CX capability.