We have an idea. An idea which we feel is going to fill a huge gap in the CX market.
The Pain Point: Customer Experience ROI Is Hard To Measure
Every organisation we've ever consulted with has had a different way of approaching the continuous improvement (outer-loop) component of a Customer Experience Measurement (CXM) program.
Additionally, there is often a large disconnect (sometimes even a sense of distrust) between the CX team and the C-Suite. This is often because the C-Suite is unable to observe any tangible benefits of the large CX investment they make each year into platforms, people and processes.
Why is this the case? We strongly believe it is because there is very rarely any linkage between business performance metrics and core customer metrics. Put in another way, CX teams really struggle to demonstrate the return on investment from their efforts.
To explain our new product, we've replicated a conversation between an organisation's CEO and Head of Customer Experience. A conversation which sadly happens too often...
CEO: Put yourself in my shoes for a second. Yes, it's great that we're listening to our customers but if that listening isn't leading to improvement, why should we do it?
Head of CX: I can assure you that the insights we're obtaining do lead to improvements for the customer. For example, we have just rolled out XYZ and ABC is due to roll-out in the next few weeks.
CEO: That's great to hear. What benefit did XYZ have on our organisation? How are we measuring success?
Head of CX: Well since we launched XYZ, our NPS score has increased by 2 points...
CEO: OK I'll ask again. What benefit has this provided back to the business? Are we making more money? Are we reducing customer churn? Are we making our customer's lives easier when they call us?
Head of CX: We don't have that data available so I'm not too sure.
CEO: From now on, any initiative must be directly tied to a core business KPI. I want to ensure that we are able to measure the success (or failure) of a certain initiative.
Head of CX: OK, so you're telling us that we have to justify everything we do?
CEO: No. I'm telling you that we need to start provding or disproving hypothesis' using actual data instead of just implementing something without knowing whether it works or not. Imagine if the marketing team just threw a bucketload of money into advertising without understanding the ROI. Why should CX be any different?
Head of CX: We try to measure improvements by tracking survey questions. If that's not enough, are you able to provide us with some other metrics we should be considering?
CEO: Sure thing - here's a list that comes to mind:
Engagement Metrics (Top of Funnel)
- Time Spent on Website - Repeat Visitors % - Pages per session - Bounce Rate - Engagement Rate (Social & Website)
Revenue Metrics (Bottom of Funnel)
- Conversion Rates - Average basket value - Sales Revenue
Retention / Loyalty Metrics (Stop Funnel Leaking)
- Customer Effort / Customer Happiness Scores - Average Wait / Resolution Times - Number of Customer Complaints - Customer Churn / Renewal Rates - Customer Lifetime Value - Reduction in process lengths - Social Media Sentiment
- Ability to increase self-service uptake
- Increased customer trust
Head of CX: Great thank you! It would be awesome if we had a system which could do this for us. I'm thinking about a system where we could manage all of our initiatives and easily link them to relevant measures of success ...
CEO: Are you thinking of something like this? Somewhere where you can track all initiatives in the same way?
CEO: And also somewhere where you can easily attribute certain initiatives to an appropriate measure of success?
Head of CX: Yes - this is exactly what I was thinking! A tool like this would ensure everyone has visibility of customer initiatives. Additionally, we would be able to attribute certain initiatives to appropriate business metrics - to actually demonstrate how valuable our work is!
CEO: If this tool will help me understand the ROI for CX & EX initiatives, let's do it. One final comment before I let you go though. If we purchase this tool, I want your word that the measure of success for any initiative will no longer be an afterthought. From now on, you should know the measure of success you're focusing on (and ideally have a baseline for that measure) before implementing any new system, process or procedure. Are we clear?
Head of CX: Yes agree. Leave that with me.
Qualtrics has taken the CX world by storm. Their survey platform is second to none in enabling organisations to capture feedback and identify actionable insights. ROIex is a tool which will compliment Qualtrics and other survey platforms, ensuring that initiatives which stem from actionable insights are managed in a consistent manner, and with a quantitative measure of success.
Stay tuned for more information about this revolutionary tool soon!
Ben the Bearded Man