Connect the ROI Dots with a Customer Experience Value Strategy
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The document discusses the importance of customer experience (CX) value analysis and its correlation with customer retention and satisfaction. It outlines five steps for measuring CX value, including assembling data repositories and monitoring interactions. Additionally, it emphasizes the need for companies to demonstrate the financial impact of their customer experience initiatives to secure funding.
Connect the ROI Dots with a Customer Experience Value Strategy
- 1. 1 Connect the ROI Dots with a Customer Experience Value Strategy COPYRIGHT ©. ALL RIGHTS PROTECTED AND RESERVED. February 19, 2014 #customerstrategy
- 2. 2 Today’s Speakers Elizabeth Glagowski Editor-in-Chief Customer Strategist Journal Don Ryan Senior Partner Iknowtion, a TeleTech company Deborah Wall Former Director, Advanced Analytics, Citi
- 3. 3 Event logistics Please turn off your pop-up blocker You will not be able to participate in today’s survey Download a PDF of today’s slides Click the green resource widget Have a question for the presenters? Click the red Q&A widget Helpful tools Click the gold question mark for help with technical issues Enlarge slides when needed Twitter Hash tag: #customerstrategy
- 4. 4 Agenda Why Customer Experience Value Analysis Matters Connecting the ROI Dots 5 Steps to Measuring Customer Experience Value Q&A
- 5. 5 Why CX Value Analysis Matters
- 6. 6 Why CX Value Analysis Matters 93% consider customer • Your airline proactively experience books you on the a next top strategic available flight, priority and • Also updates your car and hotel reservations But 86% say they don’t expect much value from customer experience investments Major disconnect Source: Forrester Research, The State of Customer Experience Management: 2013
- 7. 7 Why CX Value Analysis Matters High customer experience scores correlate with: • Higher intent to repurchase • Lower intent to defect • Likelihood to recommend to friends & family But senior executives want more definitive proof… Source: Forrester Research, The State of Customer Experience Management: 2013
- 8. 8 Why CX Value Analysis Matters Only 37% of companies have earmarked a budget for customer experience initiatives Source: Forrester Research, The State of Customer Experience Management: 2013
- 9. 9 Why CX Value Analysis Matters
- 10. 10 Connecting The ROI Dots
- 11. 11 Customer Experience (CX) Is the Product of Three Attitudinally Impactful Elements Customized Value Propositions Product Performance Service Quality Value propositions that are tailored to an individual based on knowledge of that person’s needs How the customer is handled when he interacts with the brand and the extent to which his issues are resolved How the product performs relative to claims made about the product by the manufacturer
- 12. 12 Getting CX Funding: Four ways to speak the CFO’s language Sales Attrition Rates Cost to serve ■ More, high quality Customer acquisition ■ Greater product penetration ■ More frequent transactions ■ Bigger transactions ■ Sustained activity / usage ■ Fewer defections new customers ■ Contact deflection ■ Fewer repeat contacts ■ Lower AHT, etc. ■ Market expansion
- 13. 13 Understand and Quantify the Linkages • Your airline proactively books you on the next available flight, and • Also updates your car and hotel reservations • …Saving you from long lines and headaches
- 14. 5 Steps to Measuring Customer Experience Value 14
- 15. 15 5 Steps to Measure CX Value Step 1 Step 2 Step 3 Step 4 Step 5 Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 16. 16 Poll question Of the five steps, which poses the greatest challenge to your firm? 1. Assembling an analytic data repository 2. Tracking all customer interactions 3. Monitoring customer experience scores 4. Determining customer behavior changes 5. Evaluating customer value impacts
- 17. 17 Industry trend: Very few truly integrated data repositories that contain interaction histories Step 1 Step 2 Step 3 Step 4 Step 5 Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 18. 18 CX Value Analysis: Step 1 Aggregate data about customer attributes, transactions, interactions, engagement, and value Integrate siloed data contained in various platforms, such as CRM, website, sales, and contact center systems Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 19. 19 CX Value Analysis: Step 2 Continuously assemble channel interaction data to understand the level of customer engagement Monitor changes in customer behavioral trends and, importantly, gaps in activity Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 20. 20 Customer engagement takes many forms Surveys taken Example: Asset Management Firm Rep-directed planning session
- 21. 21 CX Value Analysis: Step 3 Assemble an analytic Link individual customer experience scores (e.g., NPS, CXi, CSAT) to the customer record Predict CX scores for those that have not completed a customer experience survey Create an overall CX score for each customer data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 22. 22 Companies now routinely capture customer-level VOC data • Online Pop-up Surveys • Purchase Experience • Contact Center Interactions • Product Satisfaction • Customer Service Experience ..and CX scores can be estimated for those who do not complete a survey
- 23. 23 Model shows how the biggest gains in NPS could be achieved
- 24. 24 Poll question Where do you see the biggest opportunity to move the needle on customer satisfaction or NPS at your organization? • Problem resolution • Providing best help • Hold time • Personal effort • Listening • Courtesy • Automation ease of use
- 25. 25 Industry insight: Resolving the problem with the first contact is highly impactful, large satisfaction drop off if not resolved by second contact
- 26. 26 CX Value Analysis: Step 4 Assess trends in individual customer behaviors, looking for changes after notable customer interactions and transactions Correlate customer behavior activity with customer experience scores Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 27. 27 Service quality has significant impact at retail banks Customers with satisfactory customer service experience are 5-10% more likely to open new account… …whereas customers with bad customer experience are 10-20% less likely to open new account
- 28. 28 CX Value Analysis: Step 5 Assess the financial value of the “incremental” changes in customer behaviors resulting from changes in customer experience scores Focus on key business metrics such as incremental purchases, attrition rate, cost to serve, and spikes in customer acquisition that can be attributed to improvements in customer experience Assemble an analytic data repository Track all customer interactions Monitor customer experience scores Determine customer behavior changes Evaluate customer value impacts
- 29. 29 Impact of Product and Sales/Service Quality on Purchase Loyalty Customers purchasing at dealership with high sales/service rating are 14% more likely to buy again than those purchasing from dealership with low sales/service quality Repeat purchase rate for customers driving vehicle with “excellent” quality is 35% higher that those driving vehicles with “fair” quality
- 30. 30 Key Takeaways • Speak the CFO’s language • Aggregate and integrate the appropriate data • Understand, prioritize and continuously monitor your top customer value drivers
- 31. 31 Keep the Conversation Going Subscribe to the Customer Strategist Journal • http://bit.ly/CSjournal Upcoming Customer Strategist webinars: • Trust in financial services • Customer experience in new healthcare reality • Case study: Optimizing technology for superior customer experience Follow us on social media: • Twitter @PeppersRogers and @CustStratEditor • Facebook.com/CustomerStrategist • LinkedIn • Google+
- 32. 32 Q&A Session Elizabeth Glagowski [email protected] 203.989.2191 @CustStratEditor Don Ryan [email protected] 781-494-9989 Deborah Wall [email protected] 203-355-1857