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Tucker & Company cx roi simulator

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Get your Customer Experience program at the top of the C-suite agenda by using the CX ROI simulator to build your business case in just a few weeks.

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Tucker & Company cx roi simulator

  1. 1. 2016 MEASURING AND DRIVING ROI THROUGH CUSTOMER EXPERIENCE TRANSFORMATION
  2. 2. Measuring Customer Experience (CX) Program Impact is Critical – and Achievable EXECUTIVE CHALLENGES • CX is a “soft & fuzzy” vs. “measurable impact” program • Prioritization of resources and attention • Enterprise priority and level of investment • Part of strategic planning and operational budgeting • How to monitoring of progress, results, impact 2 CXROI SIMULATOR • CX vision and projects linked tightly to business results • Project-specific ROI for prioritizing resources, investment and optimizing overall program ROI • Month-by-month impact projections based on project deployment plan • CX Management Tool via model updates and calibration based on actual results & timing
  3. 3. DegreeofCXProgramDesign Degree of Business Model Development Landscape ROI Measurement Maturity 3 HighLow High Low 1 WHY? 2 WHY? WHERE? 3 HOW? WHO? 4 HOW MUCH? WHO’S FIRST? WHEN? • Simulate the Impact • Determine Project-level ROI • Optimize Investment • Project Timing of Impact • Establish CX Dashboard • Monitor Progress, Impact and Re-Forecast Business Case Customer Experience ROI Simulator
  4. 4. • Sales/Account management • Marketing/Customer acquisition • Invoicing/Billing/Renewals • Training/On-boarding • Support/Servicing • Revenue • Profits • Retention • Cost to serve • Acquisition costs • CSAT/NPS • Touchpoint metrics • Service metrics • Acquisition metrics CX PROGRAMS DRIVE BUSINESS RESULTS 4 4 STEP PROCESS
  5. 5. CX Improvement Programs are Scoped, Estimated and Mapped to Customer Journey Touchpoints PROJECT NAME PROJECT INVESTMENT TOUCHPOINT IMPACTED Sales Contracts Billing Order Mgmt. Training Product Usage Account Mgmt. Product Support Customer Support Renewal Customer support $300 K      Customer training $200 K   Sales process redesign $200 K    Employee training/ experience $300 K     Product improvements $1,000 K     Invoice and billing redesign $400 K      New customer onboarding $200 K          Pre-renewal engagement process $100 K   KEY Major Impact  Minor Impact  5 STEP 1
  6. 6. Customer Journey Touchpoint Improvements are Internally Benchmarked and Linked to Overall CSAT/NPS Impact 6 TOUCHPOINT TOUCHPOINT SATISFACTION OVERALL CSAT/ NPS WEIGHTINGCURRENT TARGET Product capability 85 90 25% Prod/tech support 75 85 14% Customer support 75 85 10% Training 75 85 10% Sales 70 80 9% Renewal 80 85 8% Contracts 55 70 8% Order processing 60 80 6% Billing 60 70 5% Account Management 70 80 5% Overall Satisfaction 80 90 100% STEP 2
  7. 7. Four Key Business Benefits of Improved CSAT/NPS are benchmarked using existing results – and used for simulation purposes $10,000 $5,500 $0 $5,000 $10,000 Current At Higher NPS/CSAT Account Acquisition Cost (Word-of-Mouth) - 45% Average Revenue per Account + 50% $100,000 $150,000 $0 $50,000 $100,000 $150,000 $200,000 Low CSAT/NPS High CSAT/NPS Account Retention + 30% Normal Promoters 9.0% 5.4% 0% 5% 10% Current At Higher NPS/CSAT Cost to Serve (Account Servicing Cost) - 40% 7 STEP 3
  8. 8. CX Program Impacts are Simulated using an Interactive Model – and presented in the CX Dashboard 8 Yes Current CX Sales Process No New Sales Process No Invoice & Billing Redesign Yes Current Recruitment No New Customer Onboarding No Customer Training Yes Current Onboarding Process No Product Improvements No Customer Support Yes Current AMProcess No Employee Training No Pre-Renewal Engagement Customer Experience Program - Overview and Improvement Planning Customer Onboarding Customer Use & Support Experience Improvement Project Account Management Program Area Selected Sales / Business Development 0 1,000 2,000 3,000 4,000 1 2 3 4 5 6 Account Growth Total - Projected Total - Baseline $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 1 2 3 4 5 6 Revenue Growth Total - Projected Total - Baseline 12 12 0 10 20 30 40 Baseline Projected NPS $5,345 $5,345 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Baseline Projected New Account Acquisition Cost $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 1 2 3 4 5 Total Program Costs - by year 0% 100% 200% 300% 400% 500% 600% 700% 1 2 3 4 5 ROI - after each year Yes Current CX Sales Process Yes New Sales Process No Invoice & Billing Redesign Yes Current Recruitment Yes New Customer Onboarding No Customer Training Yes Current Onboarding Process Yes Product Improvements No Customer Support Yes Current AMProcess Yes Employee Training No Pre-Renewal Engagement Customer Experience Program - Overview and Improvement Planning Customer Onboarding Customer Use & Support Experience Improvement Project Account Management Program Area Selected Sales / Business Development 0 1,000 2,000 3,000 4,000 1 2 3 4 5 6 Account Growth Total - Projected Total - Baseline $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 1 2 3 4 5 6 Revenue Growth Total - Projected Total - Baseline 12 20 0 10 20 30 40 Baseline Projected NPS $5,345 $4,581 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Baseline Projected New Account Acquisition Cost $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 1 2 3 4 5 Total Program Costs - by year 0% 100% 200% 300% 400% 500% 600% 700% 1 2 3 4 5 ROI - after each year Yes Current CX Sales Process Yes New Sales Process Yes Invoice & Billing Redesign Yes Current Recruitment Yes New Customer Onboarding Yes Customer Training Yes Current Onboarding Process Yes Product Improvements Yes Customer Support Yes Current AMProcess Yes Employee Training Yes Pre-Renewal Engagement Customer Experience Program - Overview and Improvement Planning Customer Onboarding Customer Use & Support Experience Improvement Project Account Management Program Area Selected Sales / Business Development 0 1,000 2,000 3,000 4,000 1 2 3 4 5 6 Account Growth Total - Projected Total - Baseline $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 1 2 3 4 5 6 Revenue Growth Total - Projected Total - Baseline 12 40 0 10 20 30 40 Baseline Projected NPS $5,345 $2,673 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Baseline Projected New Account Acquisition Cost $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 1 2 3 4 5 Total Program Costs - by year -100% 0% 100% 200% 300% 400% 500% 600% 700% 1 2 3 4 5 ROI - after each year STEP 4
  9. 9. CX ROI Was Projected at the Project and Program Level for Portfolio Optimization Purposes 38% 46% 68% 91% 114% 143% 174% 198% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 1 2 3 4 5 6 7 8 Project ROI CX Project Number 42% 119% 144% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% Technology People Process Program ROI CX Project Type 9 Average: 109%Average: 109% STEP 4
  10. 10. CX Program Planning Allowed Impacts to be Estimated Over Time for Operational Planning and Enterprise Optimization Purposes 70.0 75.0 80.0 85.0 90.0 95.0 J F M A M J J A S O N D CSAT Over Time PLANNED TARGET Project Project Timing (month) J F M A M J J. A S O N D Customer Support Customer Training Sales Process Redesign Employee Training/ Experience Product Improvements Invoice and Billing Redesign New Customer Onboarding Pre-renewal Engagement process 10 STEP 4
  11. 11. Model Development Annual cycle Monthly reporting 11 • CX and touchpoint metrics (VOC) • Customer value/economics • CX improvement program/projects Data Collection and Program Scope • Impact levers/key driver analysis • End-to-end linkage and economic impact • Internal benchmarks • Leadership input Model Development and Validation • Project Specific ROI • Program ROI over time • Deployment timing options • Optimization options • Year-by-year program design Decision-making and Optimization • Project monitoring and impact • End-to-end impact measurement and reporting • Model recalibration and forecasting • Re-optimization and re- planning Deployment and Monitoring Model Development in a few week
  12. 12. THANK YOU For more information, contact us: Greg Tucker, CEO 415.680.5635 greg@tucker-co.com

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