The economics of CX
Forrester Principal Analyst Maxie Schmidt-Subramanian reveals the powerful (potential) relationship between customer experience (CX) efforts and financial performance — as well as the challenges many are facing to convert on that opportunity.
It seems simple enough: deliver great customer experiences and your business will do well. Yet more than 50% of companies are unable to tie customer experience to revenue upside; others have not been able to maximize results to make CX a true revenue and margin growth engine for their firms. This gap has created meaningful — and sometimes acute — share of wallet and market share risk, as customers will flock away from poor experiences and place their attention and spend on those that deliver high-value, personalized experiences.
So what’s in the way? And how do executives re-engage and reignite their CX strategies to grow (or even protect) their P&L?
In this episode, we speak with Maxie to quantify the revenue opportunity and risk. She identifies the common issues holding back CX initiatives and revenue gains — ranging from leadership ambivalence, business unit resistance, poor leverage of technology, or simply the realization and sticker shock that CX requires companies to take on fundamental, costly, and complex change.
We also explore how leaders and CX professionals can take a portfolio, industry-specific approach to experience design so that there is great certainty and impact to CX investments.
Our conversation does not create a new blueprint for CX but serves as a stark reminder that companies have to compete and win on the basis of how customers value their experiences with a brand.