Selling CX to CEOs: Quantifying the impact of CX
Recently, I had a chance to glean over a war marvel of 52 BC, Wall of Alesia, that exacted me to think of Customer Experience Measurement. Battle of Alesia was fought in Gallic Oppidum of Alesia between Julius Caesar and the invincible native tribe. The apparently impossible terrain was won by Caesar by constructing a fortification eighteen kilometer long and four meter high.
It is a classic example of using an integrated framework and creation of measures to win a war. This helped Caesar and the army to track every move of the enemy and deploying the resources accordingly.
CX today and measurement
Similarly, Customer Experience Measurements though looks simple, can also be intriguing. This is be because Customer Experience is not a function, rater it is intertwined subtly across spans and layers of the organization
Taking a cue from the wall of Alesia, even the winning corporates today, though subtle many times, have reckoned on some framework to succeed. Citing the example of Google, the most successful organization today, they depend on eight Innovation Pillars. This brings us to a point where it becomes imperative to work on an integrated framework that can ensure excellence in Customer Experience Management in perspective of current business environment.
CEMEX 9c3i is such a framework developed by the author for managing Customer Experience along with standard measures
CEMEX – 9c3i Framework
It is a generic integrated framework for Customer Experience Management (Refer Fig below).
(Click to enlarge)
The framework works on the following premises:
- Customer Experience needs to be created across LIFECYCLE.
- The OBJECTIVEs are the opportunities to create a stream of experiences at various points within lifecycle culminating in CRESCENDOS (=Where Customers experience the maximum delight).
- Defined INTERFACES with internal functions provide the impetus to a seamless experience.
- ACCELERATOR of the framework is an Analytics system.
- BASE of the model are People (Capability and Engagement).
The Lifecycle comprises three stages. Objectives are the opportunities.
Convert involves creating the Onboarding Experience. Experience aimed to be created across three stages – Communicate, Commit and Initiate. Care is when customer contacts the firm with his problem and comprises Compile, Comprehend and Illustrate. Coddle is when customer is contacted pro-actively and resembles a feedback loop. This comprises stages of Contact, Collect and Integrate.
This is the most critical part of the framework.
Each stage comprises two metrics, one Business Metric and another Experience Metric to measure the effectiveness of the framework. These are delineated below. It is important to note that these are reflective metrics and an organization can decide similar one to reflect the essence. For example, Set-up time represents the time from buy to product activation. The indicative list of the measures are as follows:
- Business Metrics – Conversion
- Experience Metric – Set-up time
- Experience Management
- Business Metrics – Repeat Sale
- Experience Metric – Defect Rate
- Relationship Maintenance
- Business Metrics – Retention
- Experience Metric – Referral
Overall effectiveness of the framework can be measured by the following metrics:
- Business Metrics – EBITDA
- Experience Metric – TNPS
- Further metrics can be created at individual levels stemming from the metrics defined above.
Customer experience is complex and putting it within a structured ambit is always challenging. While a framework like this provides generic guidance to help an organisation to become pragmatic by focusing on the right ingredients, it further entails consistent effort, smart work, and being creative beyond a defined boundary.
If this analogy can be brought here, this is similar to cooking with a recipe – while many people can follow the same recipe, the taste is never the same.