Can You Measure the ROI of Customer Experience?

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Companies are increasingly using customer experience metrics to gauge the health of their customer relationships. But as companies continue to up their investments in customer-focused initiatives, CEOs, CFOs, and other members of the senior management team demand to know what the returns are on those efforts.
Metrics & Measurement

Companies are increasingly using customer experience metrics to gauge the health of their customer relationships. But as companies continue to up their investments in customer-focused initiatives, CEOs, CFOs, and other members of the senior management team demand to know what the returns are on those efforts. A 2012 study of the topic by Temkin Group found that customer experience is highly correlated to loyalty. In its study, Temkin Group discovered that customer experience leaders have more than a 16 point advantage over customer experience laggards in consumers' willingness to buy more, their reluctance to switch brands, and their likelihood to recommend.

Still, many organizational executives struggle to connect the dots between customer experience and business outcomes. There are several reasons for this disconnect. Siloed channel systems used to support customers make it difficult for senior management to get a comprehensive view of the customer experience across all touchpoints.

In other cases, periodic assessments aimed at correlating customer experience to business outcomes are taken but there isn't consistent follow-through to act on the insights (e.g. acting on the insights to make continual improvements to customer-facing processes).

Meanwhile, in some organizations, senior management isn't convinced that there's significant ROI that can be generated from customer experience, so there's less incentive for VPs and senior managers to take the steps necessary to connect the dots.

To gain a deeper understanding of how companies are faring with measuring the business impact of customer experience and how the results are being applied, 1to1 Media has teamed up with Temkin Group to conduct a survey on the topic. The results will be published on 1to1Media.com and in the Fall issue of Customer Strategist.

Please take our survey to see how your organization stacks up.

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