This is part three of a four part series on the economic value of Customer Experience Platforms
In part one of the blog series, we looked at a framework for building a business case to invest in customer experience technologies. In part two, we looked at KPIs that drive enhanced customer experience and true financial benefits. In this part, we will look at how contact centers can increase customer lifetime value.
Contact centers are traditionally seen as cost centers; the key measure of success points to reduced cost to serve. That trend is being overridden by a new wave in customer experience. By 2020, we expect Customer Experience to take the front seat in terms of driving competitive advantage, much ahead of product and price (Walker – Customer Experience Consulting). That places a huge upside for contact centers who play a critical role in delivering exceptional customer experience. This will shift contact centers to a more strategic revenue play rather than a cost and efficiency play.
Contact centers are the powerhouse to drive exceptional customer experience all through the customer lifecycle from acquisition, growth, retention to advocacy. Here are some insights on contact center impact on each of these stages:
Contact centers need a means to measure CX (Customer Experience) like Net Promoter Score, CX score or CSAT scores. Not just that but a programmatic approach to taking the next best action to improve CX even by a few points. With these improvements definitely comes a true revenue impact. Research by Forrester shows that a one-point improvement in a mass market auto manufacturer’s CX Index score could result in $874 million in increased revenue (Drive Business Growth With Great Customer Experience, Forrester Research, Inc., October 12, 2017).
NICE CXone commissioned Forrester Consulting to build a Total Economic Impact (TEI) model for NICE CXone. For a composite organization with 1,100 seats, CXone can deliver up to $1.1M in incremental gross profit through incremental revenue opportunities uncovered with the dialer. One interviewed CXone customer improved customer satisfaction scores from 59% to 85% and another interviewee was also able to even beat a 33-year old sales record by growing opportunities by 22% in the first year and another 14% the following year.
As you start building your business case for customer experience platform, think through the customer lifetime value benefits. It is not just costs savings. Stay tuned for the next part, which will discuss how various delivery models can impact the financials.