What If Customer Experience Has No ROI? (Part 3)
July 14, 2010 6 Comments
Here’s the 3rd (and final) installment of What If Customer Experience Has No ROI?
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Tips For Making The Case With ROI
If you’re in a position where you have to make the case for customer experience based on business results and ROI, here are some recommendations to keep in mind.
- Enlist your CFO. You may have the brightest business analysts in the world on your team, but if the CFO’s team is not involved then they’ll always question your financial models and assumptions.
- Use existing metrics. Try to make your case based on the business metrics that the company already uses; it will make it easier for people to understand and will help you get their buy-in.
- Be conservative. Resist the temptation to use the high-end of estimates for potential benefits. While the results may seem more compelling, they will also be harder to defend.
- Create a simple story. People tend to remember very simple storylines, so make sure that you organize your results in a way that is very easy for people to understand.
Closing Thoughts On Customer Experience And ROI
I want to circle back around to the question that I posed in the title: What if customer experience has no ROI? If your customer experience improvements do not appear to have a positive ROI then you have three choices.
First of all, you can take a look at the model and assumptions that calculated the ROI and make sure you have fully captured the long-term benefits of increased customer loyalty. The next option is to refine your approach to customer experience; making sure that you are investing in the areas with the highest business impact. Finally, if you still can’t see any ROI, then don’t invest in customer experience initiatives.
Customer experience is not an altruistic endeavor; executive teams should focus on it because they believe that it will help their organization’s long-term business results.
The bottom line: Improving customer experience is (often) good business