Five ways to quantify the ROI of customer experience management
Posted by Nelson Pascua in Customer experience on Wed, 13/04/2011 - 01:00
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ROI of CEM #1: Reduce at-risk revenue. Recover potentially lost customers
Nelson Pascua of Medallia, Inc., frames ROI analysis around specific measures and outcomes in order to quantify the fully loaded economics of customer-centricity.
In the customer experience space, return on investment (ROI) is a term often thrown around but rarely defined. That lack of clarity can be problematic, especially when businesses are considering different customer feedback programs or when trying to make the most out of the one currently in use.
The purpose of this article is to help frame ROI analysis around specific measures and outcomes in order to quantify the fully loaded economics of customer-centricity - increased sales to existing customers, lower staff turnover costs, increased brand value and more.
Read on - we’ll flesh out a few different definitions of ROI as it relates to customer experience management (CEM) and offer examples of the ROI real companies have achieved using CEM programs.
ROI of CEM #1: Reduce at-risk revenue. Recover potentially lost customers
A CEM program should allow businesses to 'close the loop' with customers, identifying those who are at risk of defecting in time to pull them back into the fold. Consider this example of a customer at an industry-leading luxury hotel.
During the customer’s visit to this hotel, a string of poor customer service transactions left him frustrated and angry. Unhelpful receptionists, delays during his check-in, and a missed wake-up call ensured that the customer would not be staying at the hotel again.
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