Clootrack, an intelligent customer experience analytics platform designed for enterprises and high-level decision makers, conducts a study demonstrating the financial benefits of business growth even in uncertain economic times and a slew of long-term benefits of customer experience initiatives.
Their research on the return on investment (ROI) of customer experience (CX) used input from 20 Global CX leaders from major brands worldwide. According to the findings of their study, Clootrack found that measuring the ROI of CX initiatives is crucial for demonstrating the value of these investments to stakeholders.
The study demonstrates the financial benefits of business growth, even in uncertain economic times, and a slew of long-term benefits of CX initiatives.
"Our findings of the 20 Global CX leaders provide a compelling justification for investing in customer experience. It also justifies CX professionals' importance in business impact and demonstrates why they should not be the first to be laid off during tough economic times," states a representative of Clootrack.
Many CX metrics, such as the Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and Customer Effort Score (CES), are widely used. These metrics are appropriate for assessing the state of customer experience programs. Still, they do not provide information about the return on investment regarding the financial benefit or cost reduction.
Clootrack states that the reason why it is challenging to prove the return on investment for customer experience initiatives is that CX has become a key factor for company success and that many companies need help calculating the ROI of CX efforts because visible metrics are owned by marketing, finance, purchase and quality control operations.
"Business outcomes of CX initiatives are hard to prove at first instance due to a lack of direct correlation of initiatives to tangible KPIs. Before measuring CX effectiveness, defining CX in a specific business context is necessary. A holistic comprehensive and consolidated view is required for CX program evaluation."
According to Clootrack, their insightful study incorporated inputs from Directors, Vice Presidents, CEOs, Founders, and other market leaders, including insights from brands such as IBM, Johnson & Johnson, Ogilvy, Africa, TATA CLiQ, Siegel+Gale, Aditya Birla Sun Life Insurance, and others.
The participants were from different regions, such as:
- New Zealand
- South Africa
"The major takeaways from the study will benefit many companies across industries in implementing effective CX programs with a method of evaluating the return on investments. Developing a model to measure ROI, capturing the right voice of customers (VOC) in feedback and CX insights, and quantifying CX improvements are valuable learnings for many sectors for seamless CX implementation," they added.
The study also focuses on the importance of long-term CX outcomes by deploying the right technology with a continuous improvements process, thus demonstrating the connection between higher customer happiness and business objectives like customer turnover, purchase frequency, upsells, cross-sell, service cost, retain lifetime value, and the effect of referrals on conversions.
Clootrack is an intelligent customer experience analytics platform for enterprises and high-stake decision-makers. Clootrack's powerful AI-driven engine helps brands understand the qualitative reasons "why" their customer experience drops.
For more information, visit their website below or to download the full report.