Despite much enthusiasm at executive levels, along with investments in Customer Experience (CX) teams and initiatives over the past decade, only one in four companies are “winning” – able to quantify benefits or achieve a competitive edge. About six in ten CX initiatives can cite benefits but can’t make an ROI-based business case.
Now, more than ever, CX leaders must show that improving experiences will deliver value to customers and the business. The current economic crisis will put extraordinary pressure on spending. This study found two-thirds of respondents expect budgets to decrease in 2020 as a result of the COVID-19 pandemic.
This report explores how CX leaders can more effectively create and sell a business case internally to get financial support. In short: A CX business case must answer the “WIIFM” question: What’s In It For Me?
CX professionals often advocate for a customer-centric point of view and evangelize that satisfied customers create long-term value for a business. But this approach is not effective in gaining funding in organizations mainly focused on achieving traditional operational goals. Based on nearly 50 interviews and 200 survey responses, three practices were identified to help CX leaders get to “yes.”
1. Learn What “Success” Means to Prospective CX Supporters
CX professionals may be misled by surveys claiming that 80% or more of business leaders believe CX is the key to competing. Or, by finding “customer satisfaction” among a list of metrics masquerading as Key Performance Indicators (KPIs). A critical first step is to thoroughly research what drives the success of both potential sponsors (funders) and stakeholders (affected users and other influencers).
2. Develop an ROI Strategy to Link CX to Business Success
Top management may be receptive to the argument that CX improvements will boost long-term growth. But the operational levels at most companies are still focused on achieving tactical results, such as prospect engagement (marketing), closed orders (sales), or caseload efficiency (service). The ROI strategy should show value tailored to the success drivers currently in use.
3. Prove CX Value with Cost/Benefit Analysis and Intangibles
A cost/benefit analysis is a must for any CX program, regardless of whether it is formally required. Furthermore, the business case should include stakeholder endorsements and important intangible factors – all packaged into a document or presentation easily digested by supporters. In some cases, a successful pilot or detailed implementation plan will help seal the deal.
Bottom line: For CX to get the funding needed to deliver a win for customers, CX leaders must also show how it delivers wins for sponsors and stakeholders.