4 Requirements for Linking CX to ROI

By Ernan Roman

yorgunum / Pixabay

Eighty-one percent of consumers are willing to pay for a better experience, according to the Capgemini’s study “The Disconnected Customer.” Yet, customers don’t feel that companies are delivering high quality customer experience (CX), and one in five consumers stopped purchasing from a company after a poor experience, Capgemini’s research found.

In our own ERDM learnings from more than 16,000 hours of VoC research interviews, consumers were emphatic that short-term sales-focused tactics were irritating, brand damaging, and undermined loyalty. As empowered consumers, they expected engagement oriented communications and experiences.

Here is a representative quote from the research: “You marketers don’t understand that personalized engagement post-sale is valuable for the customer and… forges strong ties with your company that serve as a ‘grace account’ upon which to draw when there is the almost-certain problem or outreach from competition.”

Chris Hull, Chief Merchandising Officer at the iconic American luxury lifestyle brand Shinola, puts it this way, “Consumers are looking for meaningful experiences that differentiate one brand from another. One way we do this is by designing our stores to engage the five senses:

  • Sight – see team members build bicycles or do personalized embossing;
  • Sound – a warm welcome and vinyl playing on our Runwell Turntable;
  • Touch – well-crafted products, such as watches and leather bags;
  • Taste – a complimentary bottle of Shinola Cola;
  • Smell – the smell from our Shinola candles lit throughout the store.

This is all part of conveying our distinctive handcrafted products and has resulted in higher engagement, satisfaction, and conversion rates.”

With this in mind, here are four factors that will help you link CX to improved ROI:

1. CX strategies must align with consumer demands
Too often sales strategies are spray painted to look like CX strategies. However, customers are smart and know the difference between sales pitches posing as engagement and true CX. They resent when marketers think that customers are too naïve to know the difference.

According to Nike Chief Executive Mark Parke in comments about CX strategy development, “The important thing to point out is that changes are being driven by the consumer…. They want it fast, easy, and [they want] personal service.” Nike has implemented measures to drive personalization and has seen sales improvements in a landscape where so many other retailers and brands are failing.

2. Accurate data is essential for driving CX initiatives
As Jim Conning, managing director at Royal Mail Data Services so aptly puts it, data accuracy is non-negotiable for ROI: “CMOs and marketing directors all understand the importance of accurate customer data, but I’m not sure that more inexperienced members of the team understand the increased ROI of more accurate data.” The company’s research indicated that 34% of marketers fail to fully understand the financial impact of poor quality data; 70% of the 300 companies surveyed admit to having incomplete or out-of-date customer data; and 6% of annual revenue is being lost through poor quality data.

3. ROI also requires CX-focused content
Irrelevant content hurts your brand, so stop sending spray-and-pray blasts!

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Source:: Business 2 Community

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