Understand Your Return on CX
Can you measure the relationship between your CX initiatives and customer value? There is plenty of evidence that customer centric companies grow faster and make more money - the NPS evidence. It seems that the “...and they will buy more and they will stay longer” is silent in many CX projects.
Ellipsis & Resonate believe many CX programs are measuring the wrong things, or not enough of the right things to prove effectiveness. Many metrics for product and functional management simply do not provide a reliable compass for tracking overall experience. Yet few, if any, marketing attribution models consider CX scores such as NPS.
Resonate founder Jeff Carruthers says, “There is plenty of evidence that leading CX companies grow faster and make more money than their less customer centric competition - the NPS evidence from Bain, Satmetrix and a host of others, these companies are realising that Experience is the New Product - emphasising the entire experience surrounding a product or service. This good news has led to a passionate belief among CX practitioners that the secret to success is to ʻmake customers happy and they will buy moreʼ. Is it really that easy? How happy and how much more? What can I afford to spend on customers happiness?”
Ellipsis Managing Partner, Tim Tyler points out, “My interaction with the contact centre might be a 10/10 experience - but this may have little correlation with what I am ultimately trying to achieve (obtain a bank loan, install broadband at home) or my overall experience.”
Better performing CX ratings on the whole predict CX value or ROI but there are plenty of nuances and rabbit holes to avoid with your CX programs. Put simply, you just donʼt know if your specific CX program is contributing positively to ROI unless you have the evidence.
If investment improved CX leads to more valuable customers, variations in CX scores should have a measurable relationship with customer sales, loyalty and advocacy. We should be able to determine what CX improvement do to impact the sales results we get from owned, earned and purchased channels.
ROCX® created by Resonate and Ellipsis, couples the science of attribution and data driven marketing to clearly understand ROI on CX programs and initiatives.
How it works
· Resonate implement the appropriate CX scoring systems to measure & analyse customer feedback & sentiment for significant episodes. Problem resolution will be planned and executed with the client CX team.
· Ellipsis build appropriate marketing models, using customer & third party data. Working with the marketing team to execute marketing campaigns to test the value of the models in generating sales lift.
· CX measures are introduced into the direct marketing models and campaigns - they also become part of the analysis (or other appropriate treatment), that identifies the contribution CX is making to the marketing/sales results.
Few organisations are measuring their ROI for customer experience projects. ROCX® will measure how much more accurate marketing models are/will be in predicting actual sales as CX scores are incorporated. It’s now possible to measure improvements in CX and relate them to improvements in sales.
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