4-step approach to estimating and simulating ROI for Customer Experience programs (CX)

1. 2016
MEASURING AND DRIVING ROI THROUGH
CUSTOMER EXPERIENCE TRANSFORMATION

2. Measuring Customer Experience (CX) Program Impact is
Critical – and Achievable
EXECUTIVE CHALLENGES
• CX is a “soft & fuzzy” vs. “measurable impact”
program
• Prioritization of resources and attention
• Enterprise priority and level of investment
• Part of strategic planning and operational
budgeting
• How to monitoring of progress, results, impact
2
CXROI SIMULATOR
• CX vision and projects linked tightly to
business results
• Project-specific ROI for prioritizing resources,
investment and optimizing overall program ROI
• Month-by-month impact projections based on
project deployment plan
• CX Management Tool via model updates and
calibration based on actual results & timing

3. DegreeofCXProgramDesign
Degree of Business Model Development
Landscape of ROI Measurement Maturity
3
HighLow
High
Low
1
WHY?
2
WHY?
WHERE?
3
HOW?
WHO?
4
HOW MUCH?
WHO’S FIRST?
WHEN?
• Simulate the Impact
• Determine Project-level ROI
• Optimize Investment
• Project Timing of Impact
• Establish CX Dashboard
• Monitor Progress, Impact and
Re-Forecast Business Case
Customer Experience
ROI Simulator

4. • Sales/Account management
• Marketing/Customer acquisition
• Invoicing/Billing/Renewals
• Training/On-boarding
• Support/Servicing
• Revenue
• Profits
• Retention
• Cost to serve
• Acquisition costs
• CSAT/NPS
• Touchpoint metrics
• Service metrics
• Acquisition metrics
CX PROGRAMS DRIVE BUSINESS RESULTS
4
4 STEP
PROCESS

5. CX Improvement Programs are Scoped, Estimated and Mapped
to Customer Journey Touchpoints
PROJECT NAME
PROJECT
INVESTMENT
TOUCHPOINT IMPACTED
Sales Contracts Billing
Order
Mgmt.
Training
Product
Usage
Account
Mgmt.
Product
Support
Customer
Support
Renewal
Customer support $300 K     
Customer training $200 K  
Sales process redesign $200 K   
Employee training/
experience
$300 K    
Product improvements $1,000 K    
Invoice and billing
redesign
$400 K     
New customer
onboarding
$200 K         
Pre-renewal
engagement process
$100 K  
KEY
Major Impact 
Minor Impact  5
STEP 1

6. Customer Journey Touchpoint Improvements are Internally
Benchmarked and Linked to Overall CSAT/NPS Impact
6
TOUCHPOINT
TOUCHPOINT SATISFACTION OVERALL
CSAT/ NPS
WEIGHTINGCURRENT TARGET
Product capability 85 90 25%
Prod/tech support 75 85 14%
Customer support 75 85 10%
Training 75 85 10%
Sales 70 80 9%
Renewal 80 85 8%
Contracts 55 70 8%
Order processing 60 80 6%
Billing 60 70 5%
Account Management 70 80 5%
Overall Satisfaction 80 90 100%
STEP 2

7. Four Key Business Benefits of Improved CSAT/NPS are benchmarked
using existing results – and used for simulation purposes
$10,000
$5,500
$0
$5,000
$10,000
Current At Higher NPS/CSAT
Account Acquisition Cost (Word-of-Mouth) - 45%
Average Revenue per Account + 50%
$100,000
$150,000
$0
$50,000
$100,000
$150,000
$200,000
Low CSAT/NPS High CSAT/NPS
Account Retention + 30%
Normal
Promoters
9.0%
5.4%
0%
5%
10%
Current At Higher NPS/CSAT
Cost to Serve (Account Servicing Cost) - 40%
7
STEP 3

8. CX Program Impacts are Simulated using an Interactive Model – and
presented in the CX Dashboard
8
Yes Current CX Sales Process
No New Sales Process
No Invoice & Billing Redesign
Yes Current Recruitment
No New Customer Onboarding
No Customer Training
Yes Current Onboarding Process
No Product Improvements
No Customer Support
Yes Current AMProcess
No Employee Training
No Pre-Renewal Engagement
Customer Experience Program - Overview and Improvement Planning
Customer
Onboarding
Customer Use
& Support
Experience Improvement
Project
Account
Management
Program Area Selected
Sales /
Business
Development
0
1,000
2,000
3,000
4,000
1 2 3 4 5 6
Account Growth
Total - Projected Total - Baseline
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
1 2 3 4 5 6
Revenue Growth
Total - Projected Total - Baseline
12 12
0
10
20
30
40
Baseline Projected
NPS
$5,345 $5,345
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Baseline Projected
New Account Acquisition Cost
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
1 2 3 4 5
Total Program Costs - by year
0%
100%
200%
300%
400%
500%
600%
700%
1 2 3 4 5
ROI - after each year
Yes Current CX Sales Process
Yes New Sales Process
No Invoice & Billing Redesign
Yes Current Recruitment
Yes New Customer Onboarding
No Customer Training
Yes Current Onboarding Process
Yes Product Improvements
No Customer Support
Yes Current AMProcess
Yes Employee Training
No Pre-Renewal Engagement
Customer Experience Program - Overview and Improvement Planning
Customer
Onboarding
Customer Use
& Support
Experience Improvement
Project
Account
Management
Program Area Selected
Sales /
Business
Development
0
1,000
2,000
3,000
4,000
1 2 3 4 5 6
Account Growth
Total - Projected Total - Baseline
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
1 2 3 4 5 6
Revenue Growth
Total - Projected Total - Baseline
12
20
0
10
20
30
40
Baseline Projected
NPS
$5,345
$4,581
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Baseline Projected
New Account Acquisition Cost
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
1 2 3 4 5
Total Program Costs - by year
0%
100%
200%
300%
400%
500%
600%
700%
1 2 3 4 5
ROI - after each year
Yes Current CX Sales Process
Yes New Sales Process
Yes Invoice & Billing Redesign
Yes Current Recruitment
Yes New Customer Onboarding
Yes Customer Training
Yes Current Onboarding Process
Yes Product Improvements
Yes Customer Support
Yes Current AMProcess
Yes Employee Training
Yes Pre-Renewal Engagement
Customer Experience Program - Overview and Improvement Planning
Customer
Onboarding
Customer Use
& Support
Experience Improvement
Project
Account
Management
Program Area Selected
Sales /
Business
Development
0
1,000
2,000
3,000
4,000
1 2 3 4 5 6
Account Growth
Total - Projected Total - Baseline
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
1 2 3 4 5 6
Revenue Growth
Total - Projected Total - Baseline
12
40
0
10
20
30
40
Baseline Projected
NPS
$5,345
$2,673
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Baseline Projected
New Account Acquisition Cost
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
1 2 3 4 5
Total Program Costs - by year
-100%
0%
100%
200%
300%
400%
500%
600%
700%
1 2 3 4 5
ROI - after each year
STEP 4

9. CX ROI Was Projected at the Project and Program Level for
Portfolio Optimization Purposes
38%
46%
68%
91%
114%
143%
174%
198%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
1 2 3 4 5 6 7 8
Project ROI
CX Project Number
42%
119%
144%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Technology People Process
Program ROI
CX Project Type
9
Average: 109%Average: 109%
STEP 4

10. CX Program Planning Allowed Impacts to be Estimated Over Time for
Operational Planning and Enterprise Optimization Purposes
70.0
75.0
80.0
85.0
90.0
95.0
J F M A M J J A S O N D
CSAT Over Time
PLANNED
TARGET
Project
Project Timing (month)
J F M A M J J. A S O N D
Customer
Support
Customer
Training
Sales Process
Redesign
Employee
Training/
Experience
Product
Improvements
Invoice and
Billing Redesign
New Customer
Onboarding
Pre-renewal
Engagement
process
10
STEP 4

11. Model Development
Annual cycle
Monthly reporting
11
• CX and touchpoint
metrics (VOC)
• Customer
value/economics
• CX improvement
program/projects
Data Collection
and Program Scope
• Impact levers/key driver
analysis
• End-to-end linkage and
economic impact
• Internal benchmarks
• Leadership input
Model
Development
and Validation
• Project Specific ROI
• Program ROI over time
• Deployment timing options
• Optimization options
• Year-by-year program
design
Decision-making
and Optimization
• Project monitoring and
impact
• End-to-end impact
measurement and
reporting
• Model recalibration and
forecasting
• Re-optimization and re-
planning
Deployment
and Monitoring
Model Development in a few weeks

12. THANK YOU
For more information, contact us:
Greg Tucker, CEO
greg@tucker-co.com