This is the second post in a 5-part series, Digital Customer Experience
We asked Maxie Schmidt-Subramanian,
PhD, Principal Analyst with Forrester Research, about the impact
of digital transformation on customer experience (CX). Here is the
second question in our series.
Question: How can firms translate CX improvements into
Answer: Start making the case for CX by
thinking of the possible upside of improving CX. Companies have
reported benefits in categories, such as:
- Higher customer retention
- Cross/upsell of
- New customer acquisition at lower
cost through word of mouth
- Lower costs to serve
And firms have seen CX lead to a higher willingness
to pay a price premium, higher employee engagement or lower
The specific benefits of improving CX vary in type and size
depending on the industry and the circumstances of a particular
company. For example, in a recent study, Forrester found that a large
manufacturer of mass market cars could benefit to the tune of $873
million from improving their CX index scores by just one point. Next,
hone in on the right benefits for your business case.
- List your firm’s key goals (e.g. increase revenue per
customer) and the customer behaviors that drive those goals (e.g.
customers buy more products or pay higher prices).
this with a quick back-of-the-envelope analysis to determine whether
customers who like their experiences show the desired behaviors
significantly more than customers who report poor CX. If that’s not
the case, it is likely not CX that drives the desired customer
- Now, estimate the investments required to improve
CX. Most investments fall in areas like training, technology, and
- Finally, once you know benefits and
costs, you can calculate the ROI of CX transformation.
Consumers expect more from each touchpoint, as
businesses try to accommodate this fast-paced, high-interaction
reality. InstaTouch® Suite provides simplified digital
consumer interactions with one touch authentication, easier
payments, and better offers. You might also find these resources
helpful – InstaTouch Suite.