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.  

Who Moved Your Cheese (Customers) ?

You need your customer more than they need you . Do you know this fact?  Many would reply – YES we know.

But real problem starts when we see our action  as far as customer experience is concerned. Our actions are not commensurate with the statement above.

How many companies have mission /vision statement?  Most company will answer in affirmative.

But again real problem starts once the statement is freezed and put up on website and reception area. Other than customers no one in the organisations reads and practice that.

How many of the entrepreneurs are aware that in an era of commoditisation of products and services , ease & delight in fulfilling customer needs is the real sustainable competitive advantage? Fair number of entrepreneurs have now started realising this.

But how many entrepreneurs have done anything to achieve this competitive advantage ?

Become your own customer – visit stores, call call centers , use after sales, talk to front line people , talk to back-end people (their action or inaction impact performance of front-line employees and customer experiences)  and realise – map competitive advantage your company enjoys.

Entrepreneurs and CEOs are talking & complaining about low sales, competitive pricing pressure, top-line growth issues, challenge of how to differentiate – but rare  number of entrepreneurs and CEOs are taking action in the space of bettering customer experience (CE) and most are just clueless , complaining and talking about ROI on customer experience initiatives.  

What is the ROI of life insurance policy? What is the ROI of medical treatment cost of a dying patient?  What is the ROI of cost of going to the Gym? No we do not see ROI on insurance policy or medical treatment as it is a MUST to protect our family from risk , survival or preventive health measures. CE initiatives are beyond ROI as these are MUST , not just to survive  but it is the cause of every business.It has to be a part of business strategy. (though ROI of better CE is obvious i.e. survival) 

Cheese has again moved and those focusing on bettering customer experience know who moved and how to remain with cheese , all remaining are questioning & complaining –  WHO MOVED MY CHEESE  (Customers) ?