Supercharging Growth through Customer Experience Transformation
For more than a decade, the ROI of Customer Experience has been discussed, with very few case studies or quantified examples of the growth and profit opportunity that Customer Journey transformation holds that C-Suites should be evaluating.
In that time, we at Gold Research were fortunate enough to work with dozens of companies to benchmark and realize more than $2 Billion of revenue from CX transformation, with one such project receiving the 2012 CXPA Innovation award for the “$100 Million Customer Journey”. We want to share the benchmarks and insights from this work in order to ensure that CX Transformation stays on the C-Suite Agenda – where it deserves to be.
Background
Our experience with CX Transformation has covered both B2B and B2C businesses across more than 20 industries. We worked with a wide variety of roles: CEO, President, CXO, CMO and COO’s to baseline the current customer experience, identify improvements that would improve their experience and then quantify the impact on revenues and costs from those improvements that build the business case for investing in transformational change. These industries include:
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However for more than 10 years, it has been difficult to find real examples or benchmarks of the type of improvements that real companies can achieve through CX transformation. There are hundreds of “click-bait” messages touting “CX ROI” with no examples. And plenty of theory of how to calculate ROI without any guidance on how to get and justify the assumptions to overcome organizational scrutiny.
We wanted to put out our set of benchmarks and examples based on more than 20 case studies and encourage more discovery, inquiry and innovation into how CX opportunities can be identified, designed and realized for all companies.
An explanation of these benchmarks follows:
Our business case development process uses the following 5 stages, executed in a fast-cycle, agile manner to build buy-in and momentum.
These steps can be explained as:
- Economic Baseline – Pulling together the baseline of customer spending, channel sales and company operational metrics for use in the analysis. This normally takes 2-3 weeks.
- CX Improvement Levers – Based on the qualitative and quantitative research, customer challenges, pain points, and customer experience gaps are summarized to identify the 4-5 areas of the customer experience that will have a material impact on business results. We typically summarize these and capture qualitative comments and quantitative data in 1-2 workshops.
- Opportunity Benchmarking – This is where the magic typically happens. By integrating the improvement lever insights and the economic baseline data, the opportunity is quantified and justified. This analysis is different for every case example and happens in a 1-2 week period. This establishes the “Overall Opportunity” as the foundation for the business case.
- Monetization Analysis – Moving from a “Quantified Opportunity” into a practical business case requires setting priorities, moving to the next level of analytic detail and turning analytic assumptions into practical, financial estimates. This is best done in an interactive manner with marketing, operations and finance in a 1-2 week period prior to executive review.
- Activation – Moving the plan forward, securing organizational commitment and resources is of course necessary to implementation. Setting the “governance” of the improvement effort is critical to ensuring the implementation moves forward smoothly, aligned with the original vision and sustaining the organizational commitment.
