Customer experience (CX) is a major competitive focus amongst businesses.
As a business owner, you know how important it is to keep your customers happy. But did you know that investing in customer experience (CX) can provide several benefits for your business, including increased customer loyalty, improved customer satisfaction, increased revenue, and cost savings?
Customer experience (CX) has become a game-changer for businesses. Today, CX stands tall as a strategic powerhouse, enabling organisations to meet evolving consumer demands, amplify satisfaction levels, and foster unwavering brand loyalty.
Let’s dive into the numbers:
- 77% of brands believe CX is a key competitive differentiator (PwC).
- 65% of people would become long-term customers of those brands able to provide positive experiences throughout the customer journey (IDC).
- 58% of customers are willing to pay more for a better customer experience (Forbes).
With such compelling evidence, it’s no wonder organisations are ramping up their investments in various CX areas to supercharge their strategies. Some are embracing the digital channel revolution, seamlessly supporting customers across social media, video, live chat, calls, and emails. Others are delving into the depths of data analysis, gaining profound insights into customer needs, and making smart investments in service enhancements and product innovations.
To showcase the ROI of customer experience, changemakers need to connect money and data to key aspects of the customer journey.
In this article, we’ll dive into the ROI of CX investments and how it can help you improve your business’s bottom line.
How do you measure the ROI of customer experience?
To ensure your initiatives and investments are delivering real value, you need a solid framework to measure the returns on your CX strategy. It’s not just about budgets; it’s about making informed decisions and pinpointing areas where additional CX spending pays off.
Here’s the catch: Measuring the ROI of customer experience isn’t a walk in the park. The usual suspects, like surveys, often fall short with their subjectivity and unreliability. Biases can sneak in, respondents may misinterpret questions, and the results might not accurately reflect your customers’ true views and behaviours. Concerns about data protection when completing surveys create another hindrance. Plus, let’s face it, people are getting survey fatigue these days.
Given the troubles with traditional methods, firms need to find alternative means to measure the true value of customer experience.
The CX payoff: How to measure the true value of customer experience
Fortunately, there are better ways to quantify the value of your CX investments that will blow your socks off.
Let’s consider an example. Your contact centre handles 1,000 customer interactions, and you need 10 agents working 8 hours per day to meet those demands. A digital channel contact centre solution can help to speed up resolution time by an average of 40%. If interactions used to take an average of 5 minutes, you can now bring it down to a lightning-fast 3 minutes.
Here’s the math: Across those 1,000 interactions, you’ll save a total of 2,000 minutes, equivalent to 33 hours. Now, if your agents earn £12 per hour, those time savings translate to nearly £400 a day or a staggering £92,000 a year.
But wait, that’s not all! There are more ways to measure the ROI of your CX initiatives:
- Implement self-service options and free up a sweet 20% of your customer service agents’ time. Less stress, more efficiency!
- Harness analytics to identify areas for process optimisation by minimising silent time on voice calls.
Unlock the power of CX: Understanding the true monetary value
The key to a winning CX strategy lies in understanding the true monetary value of your initiatives. Armed with solid data, you’ll captivate senior decision-makers, showcasing how your investments will pay off in the long run. So, let’s seize the opportunity and unleash the true ROI of customer experience! Contact Cirrus today to discover how you can prove the ROI of customer experience.