By Sean McDade
mcmurryjulie / Pixabay
For almost any initiative in business, the way to convince leadership to invest is to show them a return on investment (ROI).
In turn, the best way to secure executive sponsorship in VoC is to demonstrate that improving the customer experience pays big returns.
Start with the facts
If you are leading a customer experience (CX) team, begin by gathering statistics and public information about companies that have invested in the customer experience and seen a return on that investment. Then begin to create your own internal business case for VoC.
There are a plethora of publicly available studies and reports available for you to use to bolster your case. Here are two to get you started:
- Forrester has a must-read report called “Why CX? Why Now?” (2016) that provides compelling ROI evidence that CX matters, including the ability to charge a higher price when you deliver a better customer experience.
- Watermark Consulting, a US-based customer experience advisory firm, analyzed the stock market returns of the Top 10 and Bottom 10 publicly traded companies in Forrester’s Customer Experience Index for their Customer Experience ROI Study (2019).
Over the long term, a portfolio of those Customer Experience Leader firms far outperformed their Laggard counterparts.
In industry-specific studies, they also showed that this relationship between CX excellence and stock market performance held up in both the auto insurance and home insurance markets.
Look inside at CLV to determine ROI
Public information is the first place to begin and often the only place to start if you have no VoC in place.
But if you have VoC running, your ROI possibilities are much greater. You can examine your own VoC data to build out a ROI case specific to your company.
Let’s take a hypothetical example where you are the head of CX for a B2B telecommunications company. Here’s one way you can go about building an ROI case with internal data:
- Determine the customer lifetime value (CLV) for each of your average clients, or the average revenue you can expect from the client—say, on average, $100,000 per client.
- Identify fifty clients who had a problem or concern that you were made aware of through VoC*.
Let’s say billing was inaccurate and hard to understand. Maybe the customer had a difficult time adding and deleting phones, and their changes never showed up accurately on their bill. They might have tried to resolve the issue with the less-than-empathetic billing department before simply giving up. Soon enough, contracts end and it’s easy for an unhappy customer to give thirty days’ notice with no warning. Without VoC, your organization might not know about this situation until it’s too late.
On the other hand, if problems like this are identified via VoC and someone from the customer experience team follows up with the unhappy customer immediately, the situation can be turned around before the customer cancels their contract.
Maybe the customer experience team needs to facilitate a resolution with the billing department so that statements read more clearly, or maybe they need to find a way to improve the …read more
Read more here:: B2CMarketingInsider