To grow customer value, organizations must be disciplined in creating a CX strategy that is woven into their value landscape, according to Brennan Wilkie, senior vice president of customer experience strategy, InMoment. An effective CX strategy is one that brings a new value landscape to life−one that puts the customer’s experience at the center of the value proposition.
Wilkie talked about the five guiding principles in designing CX initiatives that deliver ROI during Thursday’s Loyalty360 webinar titled, “ROI By Design: How to Create Meaningful Value from CX,” which was presented by InMoment.
Wilkie said this requires that brands design their CX plan backward from the ultimate outcome that creates financial performance for the business and includes building high-value relationships with customers and employees. Each customer experience starts prior to a transaction and lives on far afterward and, at each stage, there is an ecosystem in which your employees, partners, and processes directly and/or indirectly impact the experience.
“CX performance creates value,” Wilkie said, citing a statistic that shows 86 percent of buyers will pay more for a good customer experience, and a 10 percent increase in customer retention translates to a 30 percent increase in company value.
The key question being asked about CX now, Wilkie noted, is: “Where can CX add value in my organization?”
Here are Wilkie’s five guiding principles that drive effective and impactful CX:
Design with the End in Mind: Use thoughtful CX design that is connected to a meaningful outcome. CX design should be as thoughtful as architecture. Each brick with a purpose. Thoughtful CX design should incorporate and anticipate for the key milestones in the customer journey.
Performance on journeys is:
30-40 percent more strongly correlated with overall customer satisfaction
20-30 percent more strongly correlated with business outcomes
Proven to provide a more distinct competitive advantage
All touch points along the journey are critical. “In reality, the journey is almost a living, breathing thing,” Wilkie said.
Embrace the journey that customers want to be on:
4X increase in spend when customers engage employees and website
30 Points Overall satisfaction score increase when customers use the in-store research kiosk
18 percent More likely to purchase again within 90 days
Create CX Advocates Throughout Your Business: Marketing is at the forefront of CX budget allocation and responsibility for initiatives and nurturing those interactions with customers
ID each stakeholder in your organization who can benefit from CX and create purpose in your design
Know what makes them tick. How can you create CX for them (interests, where is their natural focus around the organization)
Assemble Your Customer … Wisely:
First Thing First: Bring it all together
Customer-specific data points appended to each CX feedback response
Ensure there’s only one truth (a single call to action to drive efficiency in business)
Leverage all information in a single place; let it work together on a platform with some sophistication and that’s compelling to everyone within the organization
Tailor Behavior
Putting behavioral psychology to work
The right employee behaviors will drive performance
20 percent average lift increase in sales when employees focus on the most impactful “Wow” behaviors
Run Your Best Race
Run your race technically sounds from start to finish, asking the question: Where can I unlock new value in my organization and drive CX?