Are you experiencing CXSS (Customer Experience Sticker Shock)? If so, you are not alone. CX is expensive. In our experience advising clients at Baker Tilly Growth Strategies, we have found it can cost upwards of $250,000.
As the focus has shifted to co-creating value instead of broadcasting your own value proposition, a suite of customer experience programs and tools to address this trend in large organizations with diverse products and customers has arisen:
- Voice of Customer Programs
- Customer Analytics Platforms
- Customer Experience Management Tools
- Customer Service and Support Solutions
- Sales Acceleration and Enablement Capabilities
- e-Commerce and Online Self Service Platforms
- Content Management and Value Creation Technology
Each of these tools has a cost and a benefit but sometimes it can be hard to see past paying the costs to enjoying the benefits.
“If you’re pumping more and more resources into the management and measurement of customer experiences, you may still be looking for the payoff.”
The Missing Piece: ROI
If you’re pumping more and more resources into the management and measurement of customer experiences, you may still be looking for the payoff. First you need to figure out where you are in the process. Baker Tilly has identified three stages for an enterprise to progress towards CX ROI:
1) Consider: Thinking critically about CX applications in your environment
Many B2B organizations are here, knowing CX is important but not understanding how to integrate CX into their business. This stage includes:
- Defining CX strategy
- Developing the plan of attack
2) Invest: Doubling down on customer experience
Organizations in this stage invest in people, processes and technologies to understand their customers and facilitate two-way value creation. This stage includes:
- Journey mapping
- VOC research
- Innovation workshops
- Prototyping with customers
- Collecting new (and analyzing existing) data
- Greater investments in technology
3) Return: Converting customer experience insights into tangible business results
Here organizations can finally link CX investments to increased revenue, customer loyalty and / or increased share of wallet. To calculate ROI, think about the return on marketing campaigns – closed loop reporting. This stage includes:
- Correlating data to business measures (NPS, revenue, transactions)
- Institutionalizing CX / automation tools / processes
- Calculating the return on CX investment
Are you following the path to tangible returns? How can you make it around the bend from Invest to Return? Move the process along with these smart strategies:
- Innovate, but test before you invest: Innovate disruptive new experiences, then prototype and test them with your customers
- Key concept: Experience innovation portfolio — Use design-thinking principles to innovate and prototype new experiences with customers before you invest.
- Design self-sustaining initiatives: Build financial and organizational support for your program by front-loading with quick wins to save costs or boost revenue
- Key concept: Self-funded roadmap — Design roadmaps with quick wins that can generate the revenue needed to support future initiatives.
- Tie CX initiatives to business outcomes: Define what success looks like for your Customer Experience program and meticulously measure against those criteria
- Key concept: Customer measurement model — Go beyond NPS. Differentiate between leading vs. lagging indicators and measure interactions, perceptions, attitudes and behavior (at the right time, with the right questions).
Looking for the payoff when it comes to CX ROI? Let the experts at Baker Tilly Growth Strategies help. Contact a Growth Strategies Advisor to get started.