Although most business leaders say it’s critical to demonstrate the financial impact of the customer experience, many don’t know how to quantify ROI. And to add even more pressure, time is of the essence with 52% saying they have less than a year to meet demands of their executive team and connect customer experience investments to top-line financial benefits.
This sense of urgency has many brands searching for the “secret formula” to a successful customer experience management (XM) program. And while there’s no easy shortcut to establishing ROI, with the right approach, your brand will be able to draw clear lines between XM improvements and business outcomes.
Here are 3 essential elements every XM program needs to identify tangible proof points behind customer experience efforts:
Measure the customer experience across the entire customer journey
Uncovering financial results and knowing where to focus requires a holistic approach to the cross-channel customer experience. The traditional “top to bottom” funnel of the past is no more. Customers now engage with brands when and how they want without a defined trajectory. And brands without an agile customer experience solution in place—one that measures across physical and digital channels—will have trouble providing a consistent experience at every touchpoint.
Stand up listening posts at every stage of the customer journey. Having the ability to reach your representative customer base where they are will help you leverage experience feedback to identify areas for improvement and prioritize those opportunities with the greatest ROI benefit.
Collect targeted + quality customer experience data
In addition to gathering feedback across touchpoints, you have to make sure you’re collecting the right kind of data. Because if you’re not gathering information that leads to actionable insights, your XM program isn’t headed toward ROI—it’s about to hit a dead end.
To stay on track, work with your XM provider to ensure your customer feedback approach is built to capture targeted and measurable insights—helping your brand achieve these 3 things:
Take an insights-driven (not a data-focused) approach to your experience management strategy
Like many buzzwords, insights get talked about so often they have become difficult to define and easy to confuse with data points. Understanding the difference between the two and determining if your customer experience program is delivering true insights or simply collecting data is now more critical than ever—particularly for brands who want to evolve and improve customer loyalty.
Here are 5 ways to distinguish between an insight or data point in your XM program:
Prove the financial impact of a strong customer experience
When it comes to understanding the economic impact of your XM program, numbers speak louder than words. If your XM vendor is only talking about ROI in a vacuum and can’t provide you with a tangible connection to specific business outcomes, your program is falling short.
SMG is dedicated to providing brands with outcome-focused insights that yield true value. In our recently commissioned Total Economic Impact™ study conducted by Forrester Consulting, clients quantify the efficiencies SMG brings to their business. Based on real client interviews and data validations, this Forrester TEI study details the tangible business outcomes achieved by a composite of SMG clients leveraging the smg360® CX solution.
The in-depth analysis determined—within just 3 years—a composite SMG client saw:
To learn more on how SMG’s customer experience solution helps our clients identify real-world ROI through their CX programs, download the study: The Total Economic Impact™ Of The smg360® Customer Experience (CX) Solution.
Kirsten Moore | Director, Client Insights