Costing the Business

Is customer experience costing the business? Is all the effort and progress being made really making a positive difference to the bottom line?

There are many ways of determining success. However success, like beauty, is in the eye of the beholder, in other words what does success look like for the various departments within the business front to back and top to bottom? As an example, the PR people may be delighted with the additional press articles talking about their great service and problem recovery however finance will probably not be happy if this is cutting the business bottom line profitability.

The result of providing great customer experiences should not be at the expense of profitability, to the contrary it must result in improved overall business performance and not just happier customers. There is also a growing under current whereby, with the number of business adopting customer experience programs growing, the value of customer experience is increasingly to just be able to stay in the race. The opportunity to get ahead of the curve by providing great customer experiences has gone.

An interesting topic that regularly occurs when speaking to businesses is what impact the customer experience program is having on the overall business. How is it being tracked, how are the metrics being used and what is changing as a result? For example, are the metrics being used Customer Experience related such as NPS or CSat or are they more business related, or both?

As we will see the Pay Off derived from a customer experience initiative from the various metrics available we get 3 fundamental questions:

1. Is there any progress with the CX plans from the beginning of the program?

2. Is this progress making any appreciable difference to the business?

3. Are there any new opportunities we weren’t aware of to make a difference?

To be able to determine this it is important to triangulate the metrics covering, customer experience, business and people. In an ideal world an improvement to the Customer Experience metric such as CSat should be reflected in improved revenue, margin and or retained customers whilst as the same time there should also be a reduction in the undesired attrition of staff, happy staff make for happy customers.

Don’t look at indicators in isolation but align to make sure the right things are happening as a result of the effort being made.

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