While customer experience is a top priority among business leaders, very few are successful in building a financial business case for their customer-focused efforts. As a result, customer experience improvement initiatives may not get the attention they deserve in the boardroom. In the presentation, “Connect the ROI Dots with a Customer Experience Value Strategy”, Don Ryan, senior partner, iKnowtion, a TeleTech Company, and Elizabeth Glagowski, editor-in-chief, Customer Strategist Journal, discuss concrete steps companies can take to tie customer experience to financial impact. Learn how to:
- Make the quantifiable business case for customer experience initiatives
- Translate NPS, customer experience scores, and other measurements into corporate financial terms using advanced analytics
- Understand which metrics lead to financial outcomes, so you know which levers to pull
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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
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Agenda
Why Customer Experience
Value Analysis Matters
Connecting the ROI Dots
5 Steps to Measuring
Customer Experience Value
Q&A
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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Customer engagement takes many forms
Surveys taken
Example: Asset Management Firm
Rep-directed
planning session
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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
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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
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Model shows how the biggest gains in
NPS could be achieved
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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
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Industry insight:
Resolving the problem with the first contact is highly impactful,
large satisfaction drop off if not resolved by second contact
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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
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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
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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
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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
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Key Takeaways
• Speak the CFO’s language
• Aggregate and integrate the
appropriate data
• Understand, prioritize and
continuously monitor your top
customer value drivers
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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
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@CustStratEditor
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Q&A Session
Elizabeth Glagowski
eglagowski@1to1.com
203.989.2191
@CustStratEditor
Don Ryan
dryan@iknowtion.com
781-494-9989
Deborah Wall
djw628@gmail.com
203-355-1857