Other parts of this series:
So many companies are engaged in digital transformation and CX. For the others, standing in place means falling behind.
As we’ve discussed earlier, organizations worldwide are aware of the relationship between digitalization and customer experience (CX), but some are further ahead then others. The research Accenture Interactive commissioned from Forrester Consulting earlier this year also showed that companies that were building out their CX agenda and the technologies necessary to support it are realizing better business results in many areas––including market differentiation, customer loyalty, scale and efficiency and return on investment (ROI)––as compared to their peers.
The ROI of improving CX varies by industry, but it is significant. Forrester’s model indicates that for home and auto insurers a one-point improvement in the CX index score above the industry average would result in an annual increase in revenue per customer of $3.25. Multiply that by 15 million––the average number of customers per company––to equal an annual impact of nearly $49 million. When asked about the extent to which the organization’s ROI had improved relative to expectations, 54% of executives across industries, and 57% in the insurance sector, reported ROI results were better or much better than expected. Meanwhile, customer satisfaction levels exceeded organization expectations by 66% of all respondents and 67% for insurers.
No company wants to leave revenue on the table, but significant gaps do exist between what organizations know to be valuable and what they are actually doing. Bridging those gaps takes senior-level commitment, planning and work, particularly in four areas:
- Shore up skills and incent collaboration. Look both within the organization and outside it to find the necessary talent. Break down internal company silos that hinder collaboration across disciplines.
- Optimize metrics by re-examining what data you collect and how you use it. Research shows 68% of insurers are using analytic tools and the rest plan to do so by mid 2017. However, 30% of insurance executives and 37% of all executives report that their organizations has not yet defined the right metrics to properly measure customer experience.
- Consult with customers, engage them in the design process and then deliver. 80% of insurers and 81% across industries believe it is important to involve customer directly in efforts to improve CX. There is a caveat, though. Like the anthropologist, an organization needs to live with its customers to understand what they really want––not what they say they want, which is often quite different.
- Recognize CX as a mindset, not a project with a beginning and end. It should be fluid and evolve as digital and customer expectations evolve.
This digital world has awakened all sorts of new expectations for CX, and this is an opportunity for savvy organizations to rise up from the pack and reap the many benefits associated with a loyal, happy, growing customer base. There is really not much middle ground, as standing in place means falling behind.
- Read part 1 of this series “Walking and talking customer service” and part 2 “When is ‘okay’ really good enough?“
- Read, “Expectation Vs. Experience” The Good. The Bad. The Opportunity” Forrester Consulting commissioned by Accenture Interactive.
- Email me to discuss how organizations can use digital change to meet evolving customer experience expectations.