ROI mac to be translated

By Saturday, September 19, 2015 0 No tags Permalink 0

Customer Experience Management (CXM) is one of the business methodologies that we all think looks like a good idea, from a logical point of view. It just makes sense to treat customers as being an important resource.

However, although at first glance, it would appear that CXM is a logical step to take for any company, we need to define the actual real-world benefits. And for most companies, these benefits will need to equate to tangible financial gains.

There are three main financial benefits inherent within Customer Experience Management. These are:

  • Lowering the rate at which customers churn through greater customer satisfaction.
  • Capturing a larger wallet share through increased customer loyalty.
  • Gaining a greater level of new sales through customer advocacy.

Keeping Customers

There are a whole range of reasons why customers may switch providers. Price is obviously one, quality of service is another. However, the underlying driver is always dissatisfaction. Dissatisfaction in price, quality, service or whatever.

Customer Experience Management provides a lever for pushing levels of customer satisfaction higher. This results in a lower rate of customer churn.

Getting the Most from Customers

It is a proven fact that happy customers spend more. This is especially true in service driven markets such as telecommunications and finance. Once a company has spent valuable resources attracting new customers, it makes sense to try and extract the largest wallet share possible.

Customer Experience Management once again provides a lever to achieve greater wallet share. Satisfied customers will often look first to their current vendor when looking for related products to purchase.

The Customer as a Salesman

Finally, we come to the concept of customers becoming brand advocates and ambassadors. Attracting new customers is an expensive process, so anything that can lower this cost has to have a massive financial benefit.

Customer Experience Management can help to turn customers into promoters of the product/brand, who will actively recommend it to their peer group. This of course, results in more sales, and greater revenue.

Show Me the Money – Proving the ROI of CXM

Now, everything we have spoken about so far, has been done to death on a million websites already. Even here on the SandSIV blog we have covered this topic several times in the past. So why are we dragging it back in to focus now?

One of the main problems faced by companies that are considering the adoption of CXM, is to prove the potential ROI. We know there are good financial gains to be made, but it has historically been very difficult to forecast these in terms of real world cash value.

This is about to change. SandSIV is about to publish a new white paper, that will set forth a framework for calculating actual figures, to prove the ROI of CXM, before any related project is begun. Invaluable for gaining the support of the C suite for any CXM endeavors.

We will be publishing this new white paper, titled CXM ROI Business Case, in a few days, so watch this space….

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