Creating Real Business Benefit From CX Activity

Understanding the Challenge

Most business leaders now concur that a key strategic objective as they move forward will be their ability to compete on the basis of CX - three quarters of senior executives expect to increase CX investment over the next 12 months (Gartner).

It’s easy to see why this is the case; a significant return on investment (ROI) can be enjoyed by those successfully delivering a better experience for their customers:

• CX Leaders outperform Laggards by 80% (Forrester)
• Around four in five customers (87%) who had a positive CX will make another purchase; 18% of those with a negative CX will do so (Tempkin)
• Organisations offering a better CX will see customers spend 140% more than customers who report a negative one, and can lower the cost of serving customers by as much as 33% (Deloitte)
• Three-quarters of business leaders (75%) say delivering a relevant and reliable CX is critical to business performance (HBR).

This widespread recognition of the impact of CX has, however, dramatically increased the pressure on marketing and CX functions to show a return for CX spend. It has never been more critical for businesses to be able to show the ROI for their CX activity.

Unfortunately, leaders often report that their businesses fail to achieve the desired levels of success with their CX initiatives; when it comes to demonstrating the link, many have found it is not that simple:

• CX programmes frequently focus only on increasing their overall customer metrics without really understanding how this will materially affect the bottom-line
• The link between customer sentiment, CX improvement activity and business performance is not a linear one; competitor activity, time-lags, the role of customer emotions when evaluating the experience all play their part in clouding the relationship
• CX improvements cost money, which is difficult to justify if the benefit cannot be seen; the complexity of the relationship can undermine a business’ ability to quantify the impact of its CX improvements
• Finally, there is the significant hurdle that those charged with engaging the business in CX frequently do not have budgetary control; with the relationship difficult to establish, it is too easy to see CX activity as just an additional cost to the business.
• Delivering the Solution

At CX Leaders our goal is to help all of our clients show a concrete return on investment and growth in their business.

To achieve the ROI so sought after, we work with them to identify and implement CX improvement activity and provide the tools and techniques to enable them to effectively measure the outcomes in terms of the impact they have on the customer experience, employee engagement and most importantly, key measures of success.

Our Successes

Across various business sectors, our CX Cycle has a proven and enviable track-record of showing real financial impact when used to assess and deliver a better customer experience.

Some of our Broad Successes

• CX Shortfalls Addressed: hundreds
• Cost Savings Made: into the millions.

In Financial Services

• Customer Spend: products per customer increased from 1.8 to 2.6
• Sales: up 17% in 3 months

In Manufacturing

• NPS: increases seen from -17 to +39; +5 to +48; up to +74
• Turnover: doubled over 4 years

In Other Sectors

• Customer Churn: reduced by 8%
• Complaints: reduced by 40%
• Profitability: increase in EBITDA of £27 million.

Click HERE to review some of the ways in which our experts have used CX Cycle to help businesses improve business performance.

Conclusion

Our extensive experience gained from helping national and international companies, large and small, along with our CX Cycle methodology, will put you in your customer’s shoes, provide insight and clarity into what really matters for your customers and ensure you show real return for the investment you make in CX activity.