6 ways to demonstrate ROI for retail customer experience programs

When customers have a positive experience across any touchpoint along the customer journey (i.e., physical store visits, digital interactions, calls to the service center), the impact is felt across your organization. So why do retailers struggle to demonstrate business outcomes of their customer experience (CX) program?

Overcoming challenges in communicating the value of CX

There’s a common misconception that customer experience doesn’t create real ROI. Dashboards and other reporting tools often lack the context necessary to tie CX metrics with overall business performance.

Dispelling misconceptions around CX return on investment

Many CX programs lack a clear timeline showing how much revenue the company loses on negative experiences and lost sales.

In today’s challenging times, senior leadership demands cold, hard facts that will boost profit, reduce cost, and decrease time to market.

Satisfying leadership’s demand for hard metrics

CX leaders understand the importance of their programs, but if they can’t clearly communicate the metrics and the ROI of the CX program, they risk losing interest and support. It’s up to the CX practitioners to provide that context in an easy-to-understand way and excite executives.

Most organizations care about increasing revenue, decreasing expenses, and retaining customers and employees for the business’s long-term success. Guess what customer experience does?

Steps retail brands can take to demonstrate real customer experience program ROI:

1. Have a more profound understanding of what data you need to identify pain points your customers are experiencing during interactions with your brand.
2. Collaborate with other functions to seek alignment within the company’s growth plans and demonstrate how the CX program supports your business goals.
3. If you are experiencing high churn, use the data gathered from customer retention and lifetime value (CLV) metrics to pinpoint what is causing these issues.
4. Use the CX insights gathered to inform the questions your leadership struggles to answer.
5. Implement a training course that educates your internal audience on how the CX program helps drives the business forward.
6. Since acquiring new customers costs more than retaining existing ones, focus on how the CX program delivers increased loyalty and customer satisfaction.

For more on how to identify the ROI you should be getting from your CX program and ways to drive customer experience program ROI, read the ebook: The Ultimate Guide to Experience Management ROI: How to Prove the Business Impact of Your CX Program