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.
