
What evidence do I need to “prove” that listening and acting on customer feedback provides a solid ROI?
What examples can I bring to the table to show the measureable value of the program?
How to I turn anecdotal examples of success into the numbers that analytical management processes demand?
These are questions I ask myself regularly [seems like daily…] as I work to build out and develop our Enterprise Feedback Management Program. I have been doing research on best practices in this area for a couple of years now and customer experience professionals seem to have many different ways of proving out their business case. I remember reading a posting of Bruce Temkin on his research at Forrester that laid out great data on what large companies were seeing with a 10% increase in Customer Experience scores. Basically it looked like this: up your Customer Experience score by 10% and you would see a 2.5-3% total lift in revenue. I can do the math. For a $250M company that works out to something like an extra $7M in sales. Nothing to sneeze at for a small/mid-sized company.
If you can sustain and build on your improvements in customer experience, this could easily become an exponential multiplier over the years. Increased customer retention and better word-of-mouth become a force unto themselves. Just think of Zappos’ relationship with its customer base via social media and you get the idea.
So ultimately, what does make the case to place customer experience improvements a priority for your company? According to Bruce Temkin’s latest research, 71% of companies identified “other competing priorities as a significant obstacle to their customer experience efforts” [see his blog at - http://bit.ly/9vj7Ok]. I have seen that first hand in my current role. Balancing limited resources with a long list of needs, wants, and business imperatives means that customer experience professionals must make a strong case for efforts that don’t always neatly tie to the bottom line in the way that a new sales channel does.
So… how do you get customer experience to the front of the list in your workplace? I would love to hear what others are facing in their efforts to make the customer the number one priority.