Challenge 1: How to engage and activate all layers within the organization to be aware of and understand the CX vision / strategy?
The rush of the day often makes it difficult to stay involved and customer centricity poses different challenges for each level of your company, from the CEO to the floor. However, it is not a project for only one team, customer centricity is a group effort. It is vital to have a cross-departmental team in your company that is engaged with keeping the programme alive. In short: it is about change management. Here are some proven best practices:
- Operational improvements: sharing customer feedback and specific customer cases (problem and remediation) during daily stand-ups within the different operational departments.
- End-to-end impact: in addition to sharing customer feedback with client-facing departments, share customer insights with the supporting (IT, HR, facility) and back-office departments to make them understand how they impact the delivered customer experience.
- Clear individual goals: continuously communicate internally on the clear WIN of CX towards every employee. How does every employee impact CX? What is in it for him/her to adhere to and practice the CX strategy?
- Reward: literally put employees in the spotlight with a little, creative present when they are personally mentioned in a positive customer feedback.
- Foresee “boast moments” for employees who delivered a WOW-moment and want to share this with his/her colleagues.
- Share CX success stories within (existing) internal newsletters and on internal social media platforms.
- Structural embedding: foresee a standard CX check to make sure all new initiatives, projects and applications are “customer proof”.
Challenge 2: How to convince management that current customers are as important as new customers?
Implementing a CX program is an investment. You invest in data collection, in time and resources to make everyone think and act with the customer in mind. How can you prove these efforts lead to more engaged customers and an increased revenue?
Key take-away: Until today calculating the precise ROI of CX remains a challenge, simply because it is different for each company and industry. It is important to build your own business case with all revenues versus all (opportunity) costs for customer acquisition versus customer retention to have the right discussions in the boardroom. We advise to start small and look into:
- Sales effort put into new customers versus existing customers;
- Calculate the customer acquisition cost (taking into account all sales & marketing efforts);
- Calculate the onboarding cost;
- Cost of one lost sale per customer and cost of one lost customer;
- Estimate the upsell potential for current customers;
- Calculate the (average) customer lifetime value;
- Calculate the cost and value of loyalty programs;
Next to building the business case that emphasizes the value of customer retention, it is important for management to “feel” what a bad customer experience means. We are all emotional beings. Specific incidents help create awareness on top of the numbers. Some tips:
- Share customer cases (good and bad ones) with management;
- Frequently share customer feedback and progress of CX projects within each department to the board;
- Go on a gemba: let managers step in the shoes of frontline employees and let them face your customers;
- Or, if possible for your business, let managers be the customer from time to time;
If we learned one thing, it is that regardless of your industry and business, CX managers often share the same challenges. The above recipes and tips are applicable in almost all organizations.
We look forward to share more experiences during our next session at TUI on April 2nd.
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