It’s not news that the customer experience is a critical battleground for competitive organisations. So, why do B2B marketers find it so difficult to secure the resources to put in place a VoC (voice of customer) programme that can deliver a dramatically improved customer experience?
Often, it’s because we’re not using the right language or creating a genuine, substantiated business case that is capable of unlocking executive buy-in. But without support from the management team, VoC is destined to remain marginalised as a niche project.
Securing executive buy-in means stakeholders are more likely to take the programme seriously and helps employees understand targets must be met and that they are empowered to do whatever it takes to achieve them.
So, what are the five key actions that you need to take to get your executives to understand the value of CX and to support the VoC programme?
1. Know your audience (the exec team)
B2B marketers must be prepared to discuss and measure the strategic benefit of a VoC programme in real financial terms, such as profit and loss, annual growth and operational efficiency.
Highlight the role of VoC in reducing the costs associated with managing dissatisfaction – handling complaints can lead to extended service (multiple calls to solve a problem, discounted products to replace a faulty item, free returns, etc.), which can cut into profit margins.
Make it clear the cost of acquiring new customers is not only high but is an increasingly complex process that can hit the bottom line.
2. Identify an ROI model that directly links to your key business priorities
In order to demonstrate the value of investing in CX, you must be able to capture the attention of the c-suite by demonstrating its ability to impact key business objectives.
If, for example, customer retention is the key to maintaining turnover in an organisation where there is a long and complex sales cycle, it would be beneficial to measure the success of the programme on its ability to reduce the churn rate.
Even if the churn rate is only reduced by 10% by following up with unhappy customers and resolving their issues, you could increase revenue by £500K p.a. Also, if you could target promoters to refer a friend – even with a 1% success rate – the programme could push revenue up by nearly a £1M.
3. Focus on facts, figures and numbers
Make sure programme projections make sense and that the numbers stack up before you submit your proposal to the board, so consider running it by the CFO (chief financial officer) first.
Ensure you use metrics that are clearly linked to financial growth when measuring customer experience so you can be sure they’re valued and understood across the business. One such metric is the net promoter score (NPS). Many businesses have found it provides a clear indication of loyalty economics, helping them to better understand where additional investment in a customer will deliver more revenue.
4. Commit to a realistic roll-out
The best way to inspire confidence in the programme is to ensure you have a clear understanding of what success looks like. However, don’t try to boil the ocean: use a phased delivery in order to get things right, first time. Take the time to define each stage, setting clear success criteria for each one so you can be sure you’ve achieved what you need to before moving on to the next stage.
Measure and monitor each step as you roll it out against these success criteria, but also be ready to be flexible and to adapt to changing priorities while continuing to keep your focus on the end game.
5. Create some quick wins for CX and the bottom line
Once you have executive buy-in, you will need to work hard to maintain it. Use alerts and reporting from the outset to make sure you’re able to take swift action that counts towards the financials you’ve committed to.
It’s entirely feasible that even during the early days of a VoC programme you may be able to identify a potential loss of future revenue from a key account. Taking fast, effective action in response to this customer insight could protect at-risk revenue and secure a valuable customer going forward.
Making sure all employees understand the value of taking immediate actions and tracking their financial effect (immediate and projected) will help to empower employees to make a difference and boost the bottom line.
Proving the value of customer experience undoubtedly requires CX professionals to demonstrate the link between loyalty, revenue and cost control. All manner of KPIs, customer satisfaction metrics and ROI figures are in the arsenal to prove the impact of improved customer experience on acquisition, retention and attrition but it’s worth emphasising that CX is constantly changing. The real value in CX does not lie in a ‘big bang’ launch or a single 3-month programme to boost end-of-year sales. It lies in positioning CX as an ongoing strategy that will need to be refined and retuned to meet changing business requirements, just like any other corporate strategy.
