To help you build or improve your business cases, Centriam built a single page summary — a map of sorts — which outlines twelve different financial gains resulting from customer experience improvements. These twelve drivers are aggregated into five categories.
Why did we focus on financials? Because it’s the most common area where companies get stuck, preventing any real action on customer experience enhancements. Multiple times we have been asked, “How do I make the case for improving customer experience? I know it’s the right thing to do, but I can’t secure budget without convincing others.”Centriam’s new Money Map condenses the answer to one page to get you moving forward — today!
“How do you make the case for improving customer experience? Check out these 12 drivers for CX and learn how your company can reap the financial benefits.” [Click to Tweet!]
How can I best use this document?
Customer experience has positive financial impact for any business, but the composition varies significantly across industries. For example, word of mouth is generally the largest category for credit cards and over-the-top service providers (think Netflix and Hulu), while most industries — such as financial services, airlines and retailers — see the largest gains in increasing future sales. While the relative impact may vary for your industry, we wanted to provide a few guidelines to help you get the most value from this document.
- If you are early in your journey: start at the left. The lowest hanging, financially tastiest fruit in your organization is most likely under two trees: increased loyalty and cost containment. If this is your first trip to the orchard, it is likely these fruits are still waiting to be picked. Often, we help organizations reallocate existing budgets to concentrate more on customer experience pain points— allowing them to raise repurchase rates within existing budgets. Download your map
- If you are mature: start in the middle. The benefits of employee loyalty are surprisingly large, so don’t forget to search that tree as you are looking to expand the impact of your CX program. If your loyalty tree is mostly picked, it may be time to pilot programs that directly encourage social promotion of your organization to further drive growth. You may also have enough wins to think about a customer experience council and broadening alignment around your CX metrics. Download your map
- If you are struggling to quantify improvements: use your data diversity. Looking at the gap between high and low performing customer groups is a great way to jumpstart your business case. For example, you can decile your customers on a variety of characteristics and correlate those deciles to customer experience. For example, you can look at the customers who primarily shop in your lowest performing stores (or live in your lowest performing network or were in the worst decile for predicted churn — you get the idea!) Then calculate what would happen if you were able to raise the bottom decile or two to average. How would that affect repurchase rates? What is the value of all those repurchases? It will likely be a massive number. Perhaps too big if you work at a large retailer. But could you make a series of changes to ten stores in the bottom quartile? Download your map
- If you need help with the math: we can help. Centriam specializes in building customer experience business cases. Centriam often helps clients establish strong links between experience and financials, set data-driven benchmarks for each pilot or program, understand the principal drivers of key consumer behaviors, and establish reasonable goals. We have the mix of strategy, measurement, data integration, advanced analytics, research and technology skills to make you successful. Contact Centriam today!
"The best time to plant a tree was 20 years ago. The second best time is now." - Chinese Proverb
Four out of five customers have stopped doing business with a brand due to a bad customer experience in the previous year. Worse, this number is trending up, and will likely be higher in 2018 as customer expectations rise. How many customers are you losing every day you postpone your customer experience enhancements? If you work at USAA, Amazon or another company with over a decade’s practice investing in customer experience, this question may not apply, but for the rest of us it is critically important. Because for the rest of us, the next best time to invest in customer experience is now. Time to get building those business cases.