Challenge 2 – How to make your CX initiatives pay dividends

February 4, 2021

The metrics that interest your C-Suite are very specific — But you’re probably not reporting it

The old way: To justify CX investment is to use traditional CX metrics

Each year, Customer Experience executives submit budget requests for their planned CX initiatives for the coming year. In justifying their requests, they use terminology associated with the favoured CX metrics for their business. These could be increases to customer satisfaction (CSAT), net promoter score (NPS), customer effort score (CES) or any other CX metrics their company favours.

Whilst the CX executives are focused on CX metrics, the CEO and C-suite are more interested in the top-level business outcomes like revenue, customer numbers and improved profitability.

An example request for funding might look like this:
We are improving the onboarding process to make it easier for new customers.  The expected outcome is that we will improve new customer satisfaction by 21%.

The old result: The C-suite needs to connect the dots between CX metrics and Business outcomes

In this example, new customer satisfaction is a positive outcome because it will lead to happier customers, who will spend more and be loyal and loyal customers improve customer lifetime value which relates to business outcomes like increased revenue and customer numbers, but it is quite a few dots for the C-suite to connect.

If your initiative doesn’t connect those dots and promise business outcomes like increased customer numbers or revenue growth or improved profit, then it is not likely your initiative will be seen as a priority for the business.

The new way: CX initiative directly delivering business outcomes and CX metrics

In this targeted approach, we identify individual customers who are at risk of leaving and step in to retain them. The retention activity is a service contact with the unhappy customer providing them with an opportunity to raise any issues or problems they are experiencing.

This approach retains customers delivering customer number targets, retaining revenue and hitting the business outcome targets for the CEO and C-suite.

 

 

An example might look like this:
A prediction and treatment initiative will improve customer retention by 20%, enabling us to meet our customer number target.

This retains the customers and delivers financial benefit. Retaining the customers directly and immediately delivers to the bottom line.

In parallel, this method of reaching out to unhappy customers to retain them turns unhappy customers into happy customers which will improve the traditional CX metrics too.

 

Unique Useful Insight (UUI)

So rather than CX initiatives that hopefully lead to improve business outcomes, you can run initiatives that directly target and deliver business outcomes and have direct CX improvements too.

Do your CX metrics translate to the financial metrics your CEO needs?  For metrics your CEO cares about, check out the marketing calculator.

See the Forrester article: There’s Just One CX Metric That Matters To Your C-Suite — But You’re Not Reporting It

We at SmartMeasures are helping our clients create CX initiatives with measurable business outcomes that connect to the numbers the CEO loves.  If you would like to know more, get in touch.