In its recent report, Drive Revenue with Great Customer Experience, 2017, Forrester offers a wide range of valuable advice on how to make the case for investing in your organization’s CX.
According to the report, it may be helpful to:
- Seize the opportunity for your brand: Understanding the relationship between CX and revenue for an industry is a good start. But Forrester found that the CX-revenue relationship for individual brands often differs from the relationship at the industry level. The distribution of CX Index scores within a company can differ, too. That’s important because CX pros need both pieces of information to focus their CX efforts. For example, if a firm faces diminishing returns from CX, that suggests they focus on improving poor experiences. But if many customers of that company have good experiences, the firm may benefit most from improving those already good experiences because the larger number of customers drives the total revenue gain up.
- Give executives a timeline for when to expect revenue gains: Once you know how much revenue your firm can gain from improving CX, you need to find the drivers of your firm’s CX performance. If you don’t have a starting point, use the drivers in Forrester’s CX Index framework. Then, work with stakeholders to learn if any projects that would improve performance on those drivers are already underway or will kick off soon. For each project, estimate how much that project would improve performance on the CX drivers and when. This will help you create a timeline for when you expect to realize the revenue potential.
- Bolster your case by adding the non-revenue benefits of improving CX: You will make a much more compelling case if you find other corporate success metrics that tie to CX improvements, especially if you work in an industry with a low revenue impact from better CX. Some benefits are ubiquitous, like reducing the cost to serve through call deflection. Others are industry-specific. In the regulated credit card industry, for example, providers can reduce regulatory pressure by decreasing the number of complaints to the Consumer Financial Protection Bureau — where 15 percent of all complaints are credit-card-related.
- Add rigor by monitoring competitive CX moves: If you have superior CX but your competitors improve their CX and reduce the gap with your firm, your customers will have less to lose by switching away from you. The risk of this happening is high: Over the years, Forrester have seen many companies that increased their CX Index scores significantly. Use insights from case studies about CX innovation, industry benchmarks, and competitive benchmarks in your company’s own market research studies to watch competitors’ behavior.
- Stay alert for signs of impending disruption: Disruption in an industry can free trapped customers and change the dynamics of how CX affects revenue. For example, TV service providers today risk losing customers to over-the-top alternatives like HBO Now. These alternatives didn’t exist just a few years ago but pummeled established TV providers in our latest CX Index benchmark study. How easy it is to disrupt an industry depends on how simple it is for customers to understand the value they are paying for, how immediately customers can get the new product or service, and how locked in customers are. Work with the strategy groups within your company to estimate the risk of disruption in your industry. Then, plot the risk of disruption in relation to the share of customers who say they have bad experiences: They are prime candidates for being whisked away by new competitors.
Read the full report to learn more about how your organization can benefit from CX improvements.
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