Should retailers fear AI or is it now essential?
For a long time, I have talked about artificial intelligence as an enabling tool that should help to improve the customer experience. It’s a...
Providing a comprehensive customer service function requires investment. It used to be seen as a cost for most companies – money had to be spent on the customer contact centre, but it could have been better invested elsewhere.
Those attitudes have changed. First, the contact centres started cross-selling and up-selling and proving that their direct customer contact could be valuable. Now, customer contact is often published publicly on social networks so the customer service function has become a key part of the marketing strategy for many organisations. The connection to the customer has become critical not only in giving each individual customer a great experience, but in driving new customers to the brand.
But how do you quantify any of this? If your job involves customer service strategy and you need to build a business case for new investment, or even just try to justify your budget projections for the year ahead, how can you determine which customer experience investments really pay off? Is it possible to measure a Return on Investment (ROI) when planning the customer experience (CX)?
The consulting firm McKinsey believes so. Their research is full of failed customer experience programmes where executives tried to wow customers with dramatic changes and innovations. However, McKinsey have seen enough CX programmes, both failures and successes, to draw some conclusions on which measures really pay off and how success can be measured.
You can read the complete McKinsey report on their website here, but I’ll summarise their approach:
These three pointers are extremely important for any executive planning an investment in CX improvement; focusing on them can help you avoid the initiatives that are ignored or that just never settle in.
What would you add to the list beyond these three key steps? Leave a comment below or get in touch on LinkedIn and let me know.