How to Demonstrate ROI On Your CX Program Using Customer Journey Analytics

Demonstrating the true ROI of a customer experience (CX) management platform can be tricky for today’s restaurant brands. In fact, a recent survey found that 89% of CX professionals say the ROI of their CX platform is not fully realized or understood within their organization. The most common reason? ROI is too often linked to financial gain as opposed to the overall efficiency of an investment. 

Customer journey analytics—or data collected across multiple touchpoints in the customer journey that helps show how satisfied customers are with your brand—is extremely valuable in helping brands better understand the importance of investing in a CX platform, provided brands know the KPIs to track. 

Here, we’ll explore crucial KPIs brands should monitor to better demonstrate the ROI of their CX platform. 

Average customer spend (share of wallet)

The average amount a customer spends at a restaurant—also known as share of wallet—is a good indicator of how satisfied customers are with their overall restaurant experience. This can include everything from menu items to the cleanliness of the dining room or restrooms. 

Average spend is a particularly strong data point at the moment, given that a recent SMG survey found that 44% of consumers say they will spend less money on dining out during the next 12 months. A CX platform that helps provide insight into your customers’ average spend can help you understand how satisfied they are.

For example, Wendy’s recently used customer spend analytics to refine the brand’s breakfast menu in ways that better satisfied customers. This, along with other CX insights, helped Wendy’s acquire a bigger seat at the QSR breakfast table.  

Average customer return cycle

Closely related to average customer spend is the average customer return cycle, or how quickly a first-time customer turns into a repeat customer. Just like how satisfied customers demonstrate a higher average spend, satisfied customers are more likely to return, and sooner. 

A recent report found that highly satisfied customers visit a restaurant or store 3x sooner than customers who reported feeling less than satisfied with the overall customer experience. Having a CX platform that simplifies the process of reporting on average customer return cycles makes it easier to demonstrate how your customer satisfaction efforts are driving customers back to your store more frequently. 

Customer lifetime value (CLV)

Brands tend to focus too much on short- or mid-term metrics–especially in the quick-service restaurant (QSR) space, where daily, weekly, and monthly average sales are so closely tracked. CLV, on the other hand, measures the total net profit a brand can expect to generate from a customer over time. 

If the average customer spend continues to increase over time or consumers self-report changes in their spending habits based on their satisfaction level in customer satisfaction surveys, that can help brands determine if CLV can be linked to better ROI. 

Cost of problem solving

The ability to access transaction-level customer journey data can illuminate potential revenue loss stemming from a variety of customer experience problems. This can also shed light on the costs of solving the problems hurting high levels of customer satisfaction. 

Imagine satisfaction surveys indicate your customers are not happy with the cleanliness of your dining room, and dirty tables or chairs are reducing average transaction amounts. With the right CX platform, brands can leverage this insight to weigh the potential revenue loss against the cost of more frequent, intense cleaning processes.

Better understanding and optimization of the costs of solving problems can result in more satisfied customers and a greater share of wallet. For example, we partnered with McDonald’s to use detailed customer journey analytics to help ensure customers felt comfortable with in-restaurant dining immediately following the COVID-19 pandemic. 

The difference between investment efficiency and financial gain in determining the ROI of a CX platform

A CX platform that offers real insights into customer journey analytics can help brands draw a more defined line between the efficiency of an investment and the financial gain generated by an investment. 

Financial gain is more of a linear connection where brands evaluate customer satisfaction relative to a growth in sales. The overall efficiency of an investment accounts for how investing in certain improvements or technology can not only prevent lost revenue but—over time—highlight how customer satisfaction levels can be used to increase things like wallet share or return cycle.

Regular customer satisfaction surveys and customer feedback opportunities are key in leveraging customer journey analytics to demonstrate ROI. SMG’s CX platform can facilitate these feedback opportunities and turn them into true CX insights that can help you grow your business.

Try our ROI brand calculator to see for yourself how our CX platform can help you demonstrate a true return on your investment.