The companies not making a monetary investment in customer experience are the ones whose leaders don’t understand the financial impact CX can have. A Return on eXperience (ROX) dashboard helps you determine precisely what victory looks like over time and offers insight into customer churn rates. To build a Return on eXperience dashboard the executive team will love, it should contain three to four key performance indicators (KPIs) directly tied to the level of customer experience delivered by every customer-facing employee and department.
It is something every organization needs to create. Do you have your KPIs in place? It is important that you commit to creating and measuring these key metrics throughout the lifecycle of your customer experience project.
Why is a Well-Thought-Out KPI Dashboard Necessary?
1. It provides a report for the executive team:
Sharing the project status with the executive team is critical. They typically want to see the numbers that tell the story of all the work that has been put into the project. They want to know that the time, energy, and resources spent on the customer experience initiative is paying off. In other words, they want to know what the return on experience is, and the KPI dashboard is the place to prove that value.
2. It offers a framework for celebrating success:
Once your benchmark is set and you implement the customer experience project, now is the time to measure the progress that has been made. At the end of the day, the best part of measuring customer experience is being able to celebrate the success of your team when you hit those metrics. It’s great to know when we’ve created extraordinary experiences, but even slightly moving the needle in the right direction is something to be celebrated and can generate enthusiasm that will have a direct impact on the entire organization.
3. It helps the team recognize areas of opportunity to improve:
Having a pulse on these metrics provides actionable insights for strategic priorities. You can better gauge where you need to allocate your resources and provide additional training. This also holds you and your team accountable, helping you recognize when you are underperforming in certain areas across the customer journey; it helps you better understand how to create a seamless user experience while meeting your growth goals.
4. It boosts motivation for year-over-year results:
By having these metrics in place, your team will be aware of what that goal metrics number is and as a result, they’ll constantly be working towards it. Then you can set the bar even higher for yourself next quarter or next year and make sure your team is building to that number.
Insights on Growth for Companies Considering Investing in CX
The following statistics help drive home the point of the distinct competitive advantage excellent CX organizations have. They can help you gain a deeper level of insight regarding the impact of experiences on business growth and how they can guide your business goals. Over the past 15 years, the stock performance of the top-scoring companies in customer satisfaction had a return on investment almost five times greater than the S&P 500!
- It is 5 to 25 times more expensive to acquire a new customer than it is to keep a current one
- 83% of customers no longer trust brands or advertising, in part due to fragmented customer journeys
- An estimated $41 billion is lost by U.S. companies alone each year due to poor customer service, indicating a high level of risk re. inadequate customer service training
- Customers who feel an emotional connection with a brand have a 306% higher lifetime value and are a source of direct referrals, recommending that brand 26% more than the average
- Bad customer service experience stories hold enormous power! 94% say an online review has convinced them to avoid a business and 4/5 consumers have changed their minds about a recommended purchase after reading a negative online review
- In our service economy, the services sector comprised 80% of U.S. employment in 2021
- Overall customer satisfaction has now dropped to its lowest level in 17 years, offering enormous CX opportunities to businesses wanting to offer awesome experiences
- 80% will go to a competitor after more than one bad customer service experience
- 48% of Americans would rather go to the dentist than call customer support
*Related: Measuring Your Customer’s Experience
Download This Amazing Return on eXperience Dashboard Template
Now you know why you need to track KPIs but maybe you don’t know where to start. We have a free tool that will help you understand where and how to track this information so you can measure your success. This free consulting tool will help guide you to which KPIs you can use to create your own Return on eXperience Dashboard and begin building experiences that will lead to increasingly happy employees, greater returns on employee experience, and stronger, more focused growth teams.
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