How to quantify ROI for CX Transformation?

Retaining customers: 

A 5% increase in customer retention leads to a 25% increase in profit. Additionally, old customers are 50% more likely to buy new products. 

Analyzing your customer retention metric shows how successful you are in keeping customers satisfied. In this saturated market, customer experience is the key brand differentiator & it can be an effective strategy to galvanize the ROI for CX transformation. 

The best way to retain customers is to utilize the Voice of Customer program and 360 customer data. Follow up with them to understand how they feel about their experience with your brand and when they need help. Leverage the data to predict which customers are likely to churn and their reason for churning. 

• Discover marketing efforts that motivate them to stay. 
• Send them a perfectly-timed & custom message to show them you value their experience. 
• Solve customer complaints quickly and effectively.
• And above all, be attentive to their needs and deliver to them efficiently. 

Starbucks generates a 12% hike in revenue and lowers inactivity by 5% with targeted loyalty campaigns. Starbucks integrated customer data and created a single source of truth to segment customers based on their purchase behavior. The brand identified the right strategy for each customer segment and offered personalization to boost retention & reconnection. 

Acquiring high-value customers: 

Acquiring customers is expensive, however, every brand needs to grow its customer base to grow its business revenue. 

Not all buyers are a fit for your target market. Focusing on customers who resemble your target customer base can help you bring new customers in and increase your demand. 

You can start collecting data from customers that resemble your existing audience to know your best customers. Using the collected data, you can build a rich profile to understand their product preference, demographics, geographics, psychographics, etc. 

This can help you weed out customers who are a bad fit. You can find customers who have a higher possibility to convert & go an extra mile to acquire them. 

The acquisition should not only focus on bringing in customers with higher LTV but also on extracting value from the current customer base. The balanced approach can help grow the ROI of CX transformation while reducing the cost to maintain customers.