How to calculate your CX ROI?

How often do you focus on the Return on Investment (ROI) when it comes to customer experience? Looking only at the calculations or metric themselves have a lot of insights, but what about the practice itself? Any ROI program is key to any customer experience program. It shows what the customer contributes to the business and how they impact the bottom line. There are a few things to consider when practicing with an ROI program. Once you make the decision to move forward with an ROI program, choose some form of an integrated metric that matters to you and the leaders of your business.

How to Start in an ROI Program?

If your current program isn’t working or even if you have started one, it can be great to work in a 90-day program. This will get you going on all the key disciplines and help provide you with a clear focus for getting to your goals. It will also allow you to make any adjustments if needed and expose any problems as well.

Once you have the ball rolling, you will feel more engaged and confident in developing a more extended program. If done well, there is more likely you’ll see greater buy-in or even more of a budget or human resources to build up the ROI program. It will also help with long-term objectives that are in need of more consideration and time.

8 Ways to Get Your Customer Experience ROI Started

Here are some eight ways to get started with your ROI program. Look at them more like a checklist as each one is important to start an effective ROI program. They are scalable so there is a lot of value in layering on your journey analytics and text analytics. The ROI measuring technology you use to measure your insights across all your channels may also start.

  • Business Alignment – The best way to start is by developing some success objectives. This can be your goals, things you are looking to change, or other points you want to reach for. A good start is looking at any overarching goals. Once there, pick some customer experience goals that will feed into any stakeholder buy-in. Pick goals that can easily be measured. Improving satisfaction scores, website conversion, or managing customer churn and employee retention are some examples.

  • Start with a Baseline – Use any relevant metrics and feedback from customers for your goals. Establish a simple baseline before you start your ROI program and go over it again to make sure it is accurate. A hole in the benchmark can cause the program to fail with a stakeholder.

  • ROI Roadmap Design – Once you have identified your first set of objectives, work up a roadmap that shows your path for each part of the objective. Don’t forget to include things like A/B tests, sequential measurements, and even adjustment notes. Many goals can have at least three to four elements that can help deliver contributions for gains. All of these will contribute to the final objective, so be sure to design a few roadmaps with an uninterrupted view of leadership.

  • Value Stream Mapping – With this, signals are identified as areas that gather customer data that are hopefully present across all your chosen channels within your company. These come in the form of surveys, SMS, online chat sessions, contact center recordings, and other ways that you use for customer engagement. Be sure to map these signals to your goals, so you are clear to move the objective forward.

  • Objective Signal Evaluation – Make sure each point is evaluated. They need to be related to the objective regularly and record the baseline and progress every 30 days. Keep in mind to show the combined current measurement for all objective analysis.

  • High-impact Strategic Change Plan – This is where you’ll map out any change management process for all your objectives. If your business wants to embrace change, then you’ll have at least one of these implemented. They will gather a stakeholder team that is goal-oriented in turn. Also, consider the review. They will drive impact and need to be updated in real-time.

  • Execution – Once data starts rolling, you will be able to see what needs to be addressed and to prioritize what needs to be fixed. Keep in mind that your company needs to execute things in their way for this to be truly effective. It helps to evaluate any risks from the start. Ask yourself how this program could fail. The ways this could fail are endless but knowing this will keep the process working. It will save your company a lot of money, enable your customers to be served better, and will affect their experience in a positive way.

  • Measurement – Now, you need to calculate the impact that customer experience has on the metrics of your business. This means choosing the elements most impacted by this. Look at the retention of both customer and employees, revenue, the cost to serve, upselling/cross-selling, and your customer experience metric of choice. Customer experience is highly measurable and delivers a value equal to marketing when it comes to growth and acquisition. It’s no longer up to interpretation.

The customer experience ROI will save your company a large amount of money. It enables your customers to not only receive better products and services but also impacts their experience so they are more apt to stay with your company longer and spend more. This checklist is, in essence, an insurance policy for your company when things start to get rough. Driving your business forward means sharing the right story. The main point in measuring your customer experience ROI is to do it early and often. With the right technology, you can automate this data with an ROI stream and dashboard. You can separate ROI stories that work with ROI contribution to some aspects like text analytics or survey feedback technology or even the whole platform. Since you’ve already identified the signals from the list earlier, measuring them becomes even easier to do.

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