Proving the Value of CX Programs: How to Measure ROI

Conceptually, everyone understands the need for a quality customer experience (CX) program, but quantifying its value often proves more tricky. Too often, organizations implement programs without a clear goal or methods to measure their effectiveness, leading executives to question the worthiness of the current program or funneling resources to an improved iteration.

Before an organization embarks on either an initial CX program or the maturation of one, its chosen goal must have a quantifiable ROI and a method for measuring it. The value of quality CX programs can be seen, for example, in the form of enhanced customer loyalty, reduced operating costs, or revenue growth.

Using a CX Initiative Prioritization Framework

Companies must create a CX initiative prioritization framework to measure ROI. The framework plays a critical role in the process of determining if strategies were successful in reaching the identified goal.

Mapping the complete customer journey helps identify pain points, but fixing them means nothing if a methodology isn’t in place for gathering evidence about whether a CX program moves the needle for either the customer or the brand. A framework can provide deep, actionable insights by implementing a structure that is applicable across any industry.

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Tracking Metrics

CX program leaders have to be intentional about choosing an ROI metric and measuring it, including evaluating available research to support an intentional CX program.

Numerous companies map their complete customer journey and don’t follow through on CX initiatives because they don’t see any valuable insights. The real issue is having a journey map but failing to identify a single value-driver, such as reducing costs or driving growth. More than one failure may occur along the customer journey, and solving each one should be the goal—but not all at once.

A framework can be applied to tailor CX strategies toward achieving particular returns, providing alignment between what the customer finds valuable and what is on-brand for the organization. Without this synergy, the experience falls apart, and a business may find itself in a worse position than when it first started the process.

Maintain a Competitive Edge

Experience-driven businesses must nurture their CX programs to maintain a competitive edge. For example, if increased revenue is the vision, customer journey maps pinpoint the touchpoint where the struggle occurs.

In one instance, a well-known retail brand consistently garnered great Net Promoter Scores, and executives couldn’t understand why those numbers didn’t translate to more revenue. Mapping the customer journey revealed that buyers loved the quality and design of the clothing, but they found it frustrating to locate the right size online or at nearby stores.

Because the company was sending surveys right after a shopper received their items, feedback was positive. Had the brand asked for customer feedback at an earlier point, however, it would have discovered the breakdown much sooner. Once it implemented changes to the shopping experience prior to purchase, customer satisfaction rose commensurate with revenue.

This same methodology effectively applies to the B2B market as well. Goals—controlling costs, driving growth—are the same, and it’s only a matter of tying metrics an organization already has to the specific initiative.

The framework doesn’t change, but a company’s priorities can. Using inflation as an example perhaps means turning the focus from growth to cost savings. Look at value with the ideal CX in mind, but also consider the conservation of resources. This way, the framework is maintained but recalibrated to fit the business aim.

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Final Thoughts

A major health provider discovered that high volumes of customers were calling the contact center to pay their bills instead of using the bill-paying portal. Mapping the customer journey revealed a breakdown in the app that prevented patients from completing their transactions.

As a result, the provider quantified improvement in the digital space, prompting fewer calls to contact center agents and creating higher levels of customer satisfaction. Applying the framework highlighted a goal and a solution that was beneficial for the customer and the brand.

Employing a robust customer experience program is good for business, but ROI must guide the work.