Showing posts with label case for customer experience initiatives. Show all posts
Showing posts with label case for customer experience initiatives. Show all posts

Thursday, October 24, 2013

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? 


- 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. 


- 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.