Measuring the ROI of Customer Experience

Recently an Information Week reporter asked me about maximizing the Customer Experience ROI.

1. What’s the best way to create a compelling customer experience business case?

2. What elements should go into a customer experience business case model?

The Customer Experience (a.k.a. CX) is the umbrella to the entire experience the customer will have with the business. These are based on several factors including and / all interactions and thoughts involving the business. Building a business case for Customer Experience isn’t all that hard to do but it does have serious and tedious tasks to show the value.

Some of the elements to satisfy your business case are:

  • Measuring the KPIs
  • Proving the financial returns
  • Staying focused on your business and not others
  • Be the taste-maker
  • Avoid the complacency of digital transformation

3. What’s the best way to measure customer experience ROI?

One factor to measure the ROI of CX is the customer’s interactions and experience during a support request. By tracking their moves and timing how long to find an answer makes for an easy business case for CX investment. When you prove CX drives KPIs, you validate the connection to financial performance.

4. What’s the biggest mistake organizations make when developing a customer experience model

Some that I would list:

Be aware of the HIPPO, the “highest-paid person’s opinion”. Your biggest customers are not your only customers. Listen to the majority and not the minority. Don’t rely only on the customer to be happy. You want to know WHY they are happy.

KISS, Keep it Simple, Silly. It’s far too often organizations want to change everything at once. Start on one path and make progressive changes.

Final Remarks

Outstanding CX saves money across the company in so many ways. An intuitive interface limits the number of requests to customer support because customers can find what they need. Also, marketing costs are reduced because customers will tell other customers how easy your product is to use.