What CEOs should know before they ask for ROI of CX Initiatives ?

ROI of CX (Customer Xperience)  initiatives is a big challenge when CX Professionals/Consultants have to get approval of their CFO & CEO.

First few pointers:

- How many CFOs & CEOs are aware about cost of acquiring new customer?

- How many CFOs & CEOs are aware about cost of mis-handling complaints and service calls?

- How many CFOs & CEOs are aware about revenue potential of each customers? 

Secondly:

- Are CFOs & CEOs aware that revenue of the company is coming from ; 

Repeat Purchase of Existing Customers + Referred Customers + Newly Acquired Customers + X & Up sale to existing Customers + Higher pocket share of existing Customers - Customer Attrition. 

Finally;

- Customer Experience initiatives positively impact;

Repeat Purchase of Existing Customers, Customer Referrals , Low cost on New Customer Acquisition  , X & Up sale by existing Customers , Higher pocket share of existing Customers , Lowers Customer Attrition. 

Plus it also impact;

Sensitivity to price rise - customer becomes less elastic in the event of price rise, it reduces complaint handling cost , it reduces after sales services cost , it reduces marketing cost.    

Plus it influence;

Public perception of the brand, it attracts better talent to the company & low employee attrition {as better CX is not possible without better EX (Employee Xperience)}. 

CX initiatives are a business survival strategy but those who understand only data, for them the above economics should be sufficient enough to ACT.  

Customer Experience & Social Impact

Customer Experience (CX) Focus , more than a business is in fact a social cause. Surprised? But its true. 

Focusing on better customer experience means making lives of customers easier , making them happy with what they buy/consume. Its at the end peace of mind for them.  It brings trust back in business. 

This cannot happen without focusing on employees engagement & happiness. 

This can save customers from misleading & misguiding advertisement & marketing gimmicks.  

With happier customers & happier employees , CX initiatives spread overall happiness in society. It shifts focus from only profit to profit through happiness. Companies focusing on CX are making money by keeping employees & customers happy. 

Today's corporations otherwise are cause of mass unhappiness with their ONLY share holder driven policies. Only PROFIT at the cost of customers & employees unhappiness , social & ethical erosion in values.  

From whatever angle you look at: CX focus is the only way for sustainable competitive advantage & social betterment. 

Hardware without Compatible Software !! CX Disaster.

Scenario One: 

If you have finest of hardware i.e. laptop, electric cord , socket , mouse  etc but as far as software is concerned you do not have matching software, either its older version or its inadequate, its incompatible & it can't help you to achieve your purpose. 

Scenario Two:

Imagine reverse: You have smarter software but weak hardware. You can achieve your purpose but it takes little longer due to weak hardware. But out put is much superior.  

Out of the two which scenario do you prefer? Ideally both will make it perfect but given a choice between the two, I think the answer is scenario two.

Your enterprise has finest of machines, equipment , furniture & infrastructure. 

But do not have well trained staff, seamless customer friendly processes , customer friendly policies.  

What will happen? You can’t achieve your business results. You can’t make your brand stand out, you can’t make rave fans, you can’t beat someone working with second scenario. You will have to spend more on marketing & advertising but customer retention is an issue. 

We use hardware to get desired results from software. 

Recently I visited a well-known diagnostic center along-with my dad. They have latest equipment, modern furniture / fixtures & clean toilets. 

But patient waiting area was irritatingly noisy due to non maintenance of door closure. Person handling the patient during the process was ill trained to handle senior citizen. For him it was a one more number to tick & getting ready for the next patient. Showing careless hurry to a patient who has gone through MRI (highly disturbing to mind)  and weak at knee was a killer. It was a perfect case of customer experience (CX) disaster. 

They have lost a patient forever. My dad told me not to ever visit this centre and to find a new diagnostic centre. It may be far , it may be costly but not this one close my residence. & he told about his experience to all his friends & relatives.

All enterprise must know where to put its effort and where to invest to get the desired end result. Walk the talk , walk the customer journey. Just putting up finest of hardware is not enough.