building a powerful cx business case › 792545d4-2de7-485b...goverance structure a cross-functional...

6/21/2018

1

Put Rocket Fuel In Your Growth

Engine With A CX Business

Case

Mike Sinoway

CEO MaritzCX

2 ©2018 MaritzCX All Rights Reserved

Only 16% Of CX Programs Have A Quantified Business Case

Source: 2016 & 2018 MaritzCX CX Evolution Study of 10,000+ CX Stakeholders

6/21/2018

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Proven Business Case Model

Existing

Customers

New

Customers

Cost To

Serve

Cost To

Sell

Increase

Revenue

Decrease

Costs

Switching Barriers

Defect Prevention

Churn ReductionHigher Customer

Retention

Higher Win Rate

Higher Stage Conversion

More OpportunitiesAcquire New

Customers

Recovery Costs

Return/Repair Process

Return/Repair PoliciesLower Cost Of

Poor CX

Research Spend

Program Impact

Program CountMore Effective

Marketing Spend

Sales Resources

Pursuit ExpenseMore Effective

Sales Expense

Focused Targets

Operations Practices

Logistics Practices

Service PracticesDifferentiate

Service Levels

More Innovation

Better Ideation

Better Commercialization

New Products &

Services

Upsell / Cross-sell

Increase Volume

Optimize Price

Higher Sales Per

Customer

Results


MCX Comprehensive Study Of CX Capabilities

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Distribution Of Companies By Stage

15%

54%

28%

3%

STAGE 1 STAGE 2 STAGE 3 STAGE 4

ATTENTIVEEMERGING RESPONSIVE PROACTIVE

CX programs have

not taken hold

Provides CX data, but

drives limited action

Actions triggered by

customer feedback

Focused on prediction

and prevention



Directly Increasing Performance By Stage


Employee NPS Aggregate Customer NPS

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Number of Best Practices by Stage


STAGE 1 STAGE 2 STAGE 3 STAGE 4

ATTENTIVEEMERGING RESPONSIVE PROACTIVE

Average number of

demonstrated Best

Practices out of

possible total of 54

8

Companies Can Learn From The CX Leaders


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Best Practice Case Study: Customer Recovery

2%, Custom Gift

1%,Live Apology,

One-time discount

<1%Manager Contact,

Ongoing discount

20%,Automated with

escalation option

3%,Standard Gift

1%,Live Apology,

One-time discount

50%,Automated

Apology

20%,

Automated with

escalation option

2%,Custom Gift

Cu

sto

me

r V

alu

e

Probability Of Defection

low medium high

low

med

ium

hig

h

• CX algorithms determine

the recovery approach

based on cost and benefit

• Recovery approach

optimizes capacity and

investment

• AI tools determine most

effective customer gift or

type of business offer


Most Common CX Best Practices


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Least Common CX Best Practices



Best Practice Roadmap: Phase 1Domain Discipline Driver Phase 1 Best Practices

Impact Value Customers’ perceptions of value are measured relative to their expectations and competitors performance

insight Expectations Customer and non-customer expectations are continually tracked via designed research.

Design Documentation Standard procedures and process documentation are coordinated across the organization, and available real-time to employees.

Delivery Discretion All employees are empowered to handle standard and non-standard customer situations as needed.

Goverance Metrics The organization uses an overriding customer measure which can be evaluated against overall targets and benchmarked across programs.

Goals Commitment Leadership visibly demonstrates support for CX programs and executives have compensation linked to CX metrics.

Development Training Market-facing (or customer-facing) employees must complete specific training modules based on their individual CX feedback.

Rewards Recognition Employee recognitions for outstanding customer service occurs regularly based on formal customer feedback programs.

Analysis Insight CX technologies track customer experience and provide department-, team-, or employee-specific analysis.

Action Integration CX data and analysis are directly integrated into other operational systems.

Sales Upsell/Cross-SellCustomers are provided with individual "recommendations" based on the customers' unique characteristics.

Retention Churn Reduction Customer churn by segment is consistently tracked, analyzed, and translated into action plans that address the root causes.

Offering Innovation Roadmap Innovation efforts are prioritized based on market research into customer needs and validated models of financial impact.

Pipeline Ideation Process Ongoing programs gather market, competitor, employee, and thought leader input to enable collaborative ideation with customers.

Operations Customer Service Processes Customer service processes are developed by modeling the relationship between optimal CX levels and cost to achieve them.

Recovery Return and Repair Policies Refund, recovery, and return policies are based on customer expectations by segment.

Mrkt Ops Number of Targets Sales activities are focused on individual customers based on their fit targeting criteria, and narrowed based on ongoing CX insights.

Sales Ops Sales Resources Opportunities are assigned to channels and sales resources based on the fit with the prospect needs and highest win probability.

Grow

New Customers

Lower

Service Costs

Lower

Selling Costs

Customer

Connection

CX

Processes

CX

Strategy

CX

Talent

CX

Technology

Grow Existing

Customer

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Best Practice Roadmap: All PhasesDomain Discipline Driver Phase 1 Best Practices Phase 2 Best Practices Phase 3 Best Practices

Impact Value Customers’ perceptions of value are measured relative to their expectations and competitors performance

insight Expectations Customer and non-customer expectations are continually tracked via designed research.

Impact Loyalty Customers are active advocates for the brand as demonstrated by membership in loyalty programs, user groups, and fan forums.

insight Emotions Emotional categorization of reviews, text, and chat provide insights to customers' feelings and enables quantitative analysis.

insight Feedback Longitudinal quantitative and qualitative customer feedback is tracked across all interactions and touchpoints.

Impact Ease All information from prior interactions is captured and used to anticipate customer needs for each transaction.

Design Documentation Standard procedures and process documentation are coordinated across the organization, and available real-time to employees.

Delivery Discretion All employees are empowered to handle standard and non-standard customer situations as needed.

Delivery Measurement Processes are measured against operational metrics, transactional customer feedback, and competitor benchmark performance.

Design Methodology Customer Journey Mapping and Blueprinting are used to develop customer-focused processes.

Design Process Requirements External research is used to identify touchpoints, moments of truth, and performance expectations as input to process designs.

Delivery Recovery Trend analysis and key indicators are used to predict process failures and launch preventive actions.

Goverance Metrics The organization uses an overriding customer measure which can be evaluated against overall targets and benchmarked across programs.

Goals Commitment Leadership visibly demonstrates support for CX programs and executives have compensation linked to CX metrics.

Goals Business Case The financial returns of the CX program are tracked as a strategic business investment.

Goverance Compliance Compliance with CX policies and standards is monitored, and enforced through digital mechanisms.

Goverance Structure A cross-functional CX Steering Committee coordinates company-wide programs and prepares CX guidelines.

Goals Company Vision The company mission, vision, or strategy includes CX targets relative to industry benchmarks and cross-industry leaders.

Development Training Market-facing (or customer-facing) employees must complete specific training modules based on their individual CX feedback.

Rewards Recognition Employee recognitions for outstanding customer service occurs regularly based on formal customer feedback programs.

Rewards Evaluations Quantified CX performance improvement tied to business impact is a formal component of individual performance reviews.

Developmemt Advancement Appropriate CX certifications are viewed as mandatory qualifications in hiring and promotion decisions in customer-facing roles

Rewards Compensation CX improvement and results versus plan are formal factors in compensation adjustments and bonus determination.

Development Voice of Employee Voice of Employee feedback is regularly collected across the organization and correlated with CX performance.

Analysis Insight CX technologies track customer experience and provide department-, team-, or employee-specific analysis.

Action Integration CX data and analysis are directly integrated into other operational systems.

Action Actionable CX technologies incorporate industry specific action planning tools, a library of best practices, and ongoing tracking functionality.

Action Access Hierarchy, authorization, and customization provide CX tools and reporting that is specific to the individual employee.

Analysis Input Raw source data are automatically cleaned, transformed, and imported into CX technologies with proper sampling and weighting.

Analysis Recommendations CX technologies leverage artificial intelligence and machine learning to proactively recommend specific actions.

Sales Upsell/Cross-Sell Customers are provided with individual "recommendations" based on the customers' unique characteristics.

Retention Churn Reduction Customer churn by segment is consistently tracked, analyzed, and translated into action plans that address the root causes.

Sales Increase Volume Plans are developed jointly with customers to define incentives for exceeding year-over-year volume.

Sales Optimize Price Customer perceptions of price are continually tracked to feed a price elasticity model.

Retention Renewal Rate Longitudinal CX data is tracked to trigger retention and reinforcement interventions when needed.

Retention Defection Prevention Predictive models score defection likelihood and trigger proactive offers to encourage retention of individual at-risk customers.

Offering Innovation Roadmap Innovation efforts are prioritized based on market research into customer needs and validated models of financial impact.

Offering Ideation Process Ongoing programs gather market, competitor, employee, and thought leader input to enable collaborative ideation with customers.

Offering Commercialization A formal customer panel is readily available at each stage of the process to provide feedback and suggest improvements.

Pipeline Opportunities Prospect surveys and CX analysis are used to prioritize individual target customers.

Pipeline Conversion Key drivers of conversion rate for each step in the sales pipeline are analyzed and identified.

Pipeline Win Rate Formal "Rejecter" studies are used to identify specific drivers of competitive losses and develop improvement plans.

Operations Customer Service Processes Customer service processes are developed by modeling the relationship between optimal CX levels and cost to achieve them.

Recovery Return and Repair Policies Refund, recovery, and return policies are based on customer expectations by segment.

Operations Operations Processes Operations decisions are consistently tested to determine the right balance between cost and CX impact.

Recovery Return and Repair Processes CX feedback is collected to close the loop on refunds, repairs, and returns and drive root cause analysis to reduce occurrences.

Operations Logistics & Admin Processes Admin & logistics decisions are consistently tested to determine the right balance between cost and CX impact.

Recovery Recovery Costs Recovery process and expense are differentiated based on failure mode and customer value, and may include proactive investment.

Mrkt Ops Number of Targets Sales activities are focused on individual customers based on their fit targeting criteria, and narrowed based on ongoing CX insights.

Sales Ops Sales Resources Opportunities are assigned to channels and sales resources based on the fit with the prospect needs and highest win probability.

Mrkt Ops Research Spend CX programs reduce spend by replacing entire market research programs and improving staff efficiency.

Mrkt Ops Number of Programs CX insights are leveraged to simulate, test, and fine-tune marketing program designs.

Sales Ops Pursuit Expense Level of pursuit investment is specifically mapped to pursuit milestones and quantified lifetime value.

Sales Ops Impact Marketing spend is evaluated based on directly-attributable profit impact.

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Pro

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Tech

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Quantified Impact of CX Best Practices

Actual Example From US Financial

Services Company

#CX2018

6/21/2018

8


Top Three Takeaways

The leading CX organizations have provided a clear

roadmap for achieving measurable results

The financial impact of each best practice has been

reliably quantified across 100’s of case studies and

1000’s of companies

Building a CX business case is a matter of linking your

plans to common CX metrics and validated benefits

#CX2018

building a powerful cx business case › 792545d4-2de7-485b...goverance structure a cross-functional...

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