ROI of Integrated Customer Experience Programs

Enterprises, with and without customer experience (CX) programs, have historically struggled to understand the ROI that these programs can bring. “What’s the revenue increase of a higher star-rating?” “What’s the value of an extra point of NPS?” “How do better customer experiences impact loyalty, acquisition, and lifetime value?” We’ve heard it all before, and know how it can seem almost impossible to see the bigger picture. 

Luckily, for the first time ever, we’ve developed three comprehensive CX calculators, helping you nail down what your program could feasibly return (whether you have one yet or not). Before we take a look at them, we’d feel it negligent to not first give you a little more context if you’re unaware: what is the “integrated” part of “integrated CX”?

Integrated CX: The Next Generation of CX Programs

Integrated CX takes customer signals (customer conversations) from every available source (see Figure 1.1 for the types of sources), fuses them together, interprets the data, and then generates predictive analytics for anticipating customer behaviors—with nearly every step powered by AI. It translates insights into actions, enabling businesses to proactively improve customer experiences and drive outcomes. It’s a new and holistic approach for the CX sector that has historically relied solely on survey data. 

If that was confusing, we’ll make it easier: Integrated CX looks at every data source instead of just one (survey data). Survey data is still useful, don’t get us wrong, but it’s not enough anymore. You need to look at everything if you want to understand everything. We’ll show you in a bit how a basic, VoC customer/Survey-only CX program compares to a full-fledged, integrated CX program, as far as expected ROI goes. 

One more thing before we present the calculators; it’s important. 

The Opportunity Cost of Inaction 

Actively neglecting to build an integrated CX program can have serious consequences. Enterprises in every industry have structured, unstructured, and semi-structured customer data being gathered every single day—wherever these feedback channels are—from across the entire global web. An inability to unify and interpret this customer data creates a dense veil between you and your customers—and more importantly—you and actionable initiatives. Here are five main ways it can wreak havoc on your bottom line:

1. Missed Revenue Opportunities

Without an integrated CX program, businesses may fail to capitalize on the full revenue potential that comes from understanding and responding to customer needs and behaviors. Higher star ratings and positive customer feedback directly influence purchasing decisions, and failing to leverage this data can result in significant lost sales. 

“It’s no longer a question—focusing on the customer experience has a proven impact on business outcomes. The results of a study by the Temkin Group found that a company that makes $1 billion annually can earn an average of $775 million in additional revenue within three years of investing in customer experience.”

-Forbes

2. Decreased Customer Retention

Integrated CX programs help in anticipating and addressing customer issues promptly, thereby improving customer satisfaction and loyalty. Without it, businesses risk losing customers to competitors. In fact, customer experience drives over two-thirds of customer loyalty, which is more influential than brand and price combined​ (Emplifi)​. This demonstrates how essential CX is in retaining customers and reducing churn.

3. Ineffective Decision Making

An integrated CX program provides a comprehensive view of customer data from multiple sources, enabling more informed and effective decision-making. Without it, businesses operate in silos, making decisions based on incomplete or inaccurate data. Companies that leverage comprehensive CX data can see significant improvements in business outcomes, such as a 20% increase in customer retention and a 10% increase in revenue per store​ (Pearl-Plaza)​.

4. Poor Brand Reputation

Failing to respond to customer feedback can damage a brand’s reputation. Integrated CX programs enable timely and proactive engagement with customers across various platforms. For example, 52% of US consumers walk away from purchases due to bad customer experiences, and a significant portion of these experiences are shared on social media​ (Emplifi)​. Managing these interactions effectively is crucial to maintaining a positive brand image.

5. Operational Inefficiencies

Integrated CX programs streamline operations by providing actionable insights that can improve processes and reduce costs. Without these insights, businesses may experience operational inefficiencies and increased costs. A strategic approach to CX can lead to better resource allocation and improved efficiency, ultimately impacting profitability and growth​ (Oracle)​.

Those are just some of the main ones; there are many, many more we could give you—ones that we’ve solved countless times for customers. As a side-note, if  you need help setting up an integrated CX program, check out our How to Build Your Integrated CX Program: 10 Steps guide, or schedule a demo with us today. 

Let’s move on and give you what you came here for—the calculators.

The ROI of CX–Made Simple

Each of these calculators correlates to three different pillars of CX programs. The benchmarks will be slightly different depending on the industry you’re in. If you want a more comprehensive calculation, schedule a demo with us today. Let’s get into it!