Saudi Arabia CXPA Network

This article is an upcoming part of How to Focus on the Most Profitable Segment for Maximum Growth Potential: Step-by-Step Guide

Imagine a sunny day at the beach, where a skilled surfers stand on the shore, gazing out at the vast ocean. With a determined look in their eyes, they know that among the crashing waves lies the perfect wave. Businesses embarking on a Customer Experience (CX) initiative face a similar challenge.

Surfers know that testing different waves is essential to find the perfect one—the waves that will propel their success. Similarly, businesses must test their CX initiatives to identify the key drivers that truly matter and create a solid plan tailored to their unique needs. It's like riding the waves of opportunity, knowing that only by focusing on the right priorities can they achieve the desired results and make the biggest impact on CX, value, and revenue.

Today, we'll delve deep into understanding your customers' journey, uncovering the key drivers that make them tick. I'll help you prioritize these drivers so you can focus your efforts where they have the most impact. And that's not all! I'll guide you through testing innovative CX initiatives, ensuring your business case is foolproof.

But we won't stop there. We'll dive into developing a comprehensive plan tailored to your unique business needs. And the best part? I'll show you how to measure the impact on customer experience, customer value, and revenue. Get ready to witness the tangible results of your efforts!

So, are you ready to propel your business to new heights? Let's embark on this adventure together.

Step 1: Reviewing the Customer Journey for Key Drivers

Just a quick note: I’m using Net Promoter Score (NPS) as my metric. However, you can use any other CX benchmarking metric.

Step 2: Understanding the Key Driver to Prioritize 

So, after analyzing your findings, you've identified the key drivers. Now, let's shift our focus and prioritize which one should be addressed first.

To tackle customer churn, let's concentrate on addressing the concerns of the 3,000 Detractors. Among them, 1,650 (55%) mentioned their dissatisfaction with the 'Discount Offers' journey. So, it shows that 'Discount Offers' should be our priority. However, we need more details about the specific type of discount offers we should provide to our customers. To do this, we need to dive deeper into the Detractors verbatim related to 'Discount Offers'. (If you're using a good survey platform, this verbatim will be automatically listed for you).

Kamil’s BONUS: Not everything is explicitly stated in verbatims. Sometimes you might need to trust your own intuition. It's all part of the process!

Now, let's take a look at the pain points we discovered while investigating the 'Discount Offers' journey as an example: 

Let's take 'Promo Codes' as an example to showcase how customers perceive them. Here’s what you have found:

• Promo codes not working: When customers attempt to use a promo code that turns out to be invalid or expired.

• Difficulty finding promo codes: Some customers struggle to find valid promo codes that they can apply to their orders.

• Restrictions on promo codes: Certain limitations, such as minimum order amounts, eligibility criteria for specific restaurants or menu items, or restrictions on code usage frequency.

• Limited time frame: If a promo code is only available for a limited time, some customers may leave negative feedback if they were unable to use it before it expired.

• Lack of personalized promo codes: Customers don't receive personalized promo codes that are tailored to their individual preferences or order history.

Repeat this process for other journeys: Free Delivery, Restaurant-Specific Deals, In-App Promotions, and Subscription Discounts. Once you've gathered all the insights, it's time to implement testing and review the impact of these improvements.

However, keep in mind that the fact that customers mention 'Discount Offers' the most doesn't necessarily mean it should be the sole focus of your business. It's crucial to understand the timelines and impact associated with each driver. We'll explain this further in the upcoming steps. Let's continue exploring. 

Step 3: Testing the CX initiative to Build a Business Case

Since you have the findings from all customer journeys, time to kick-start your CX initiative.

Test with Detractors: Now, it's time to put your prototype to the test with a select group of detractors. Implement your prototype for them and monitor the outcomes closely. After one month, run the NPS survey specifically with the detractors. The results will provide valuable insights into how many detractors have converted into promoters. If you see positive conversion, it's time to celebrate!

Build Your Business Case: To strengthen your business case, consider using the Average CLV (Customer Lifetime Value) of both promoters and detractors. Calculate the change in customer value to demonstrate the impact of your CX initiative. This data-driven approach will resonate with management and provide a solid justification for investing in customer experience improvements.

Get Buy-In from Management: Armed with your findings, it's time to present them to the management team. Show them the positive impact that your CX initiative can have on customer satisfaction, retention, and ultimately, the bottom line. Use visuals, charts, and graphs to make your presentation engaging and convincing.

Step 4: Develop a Plan 

Once you have the management buy-in, the next big thing is to give them the plan. Implementing CX improvement involves various factors that can affect the plan, such as timelines, resource allocation, budget availability, system changes, business processes, quick fixes, and the risks associated with change. To address these factors, it is crucial to engage with all stakeholders to gain a comprehensive understanding of the effort required. Additionally, utilizing your test data can help in developing a clear roadmap. See the following template for this: 

Step 5: Discovering the Impact on Customer Experience, Customer Value ($) & Revenue ($)

Are you ready to witness the remarkable positive changes your CX initiatives have brought? Let's dive into the exciting results and share them with the management!
Next, show some impact on CX (or NPS) evidence to the management and say: “We have successfully transformed 773 Detractors into Promotors, significantly boosting our NPS by an impressive 15 points. Our new NPS now stands at a remarkable 40!” 

After implementing your CX initiative for the next 6-12 months, it's important to track your NPS data, revenue, and customer base. By ensuring a sustained enhanced experience throughout customer journeys, you'll start seeing positive results.

Once you have solid numbers, which will likely be around the 12-month mark, the impact on revenue will become evident. At this point, it's time to present your findings to management. Use the following slide—your evidence # 3— and confidently declare, "Our CX initiative has yielded fruitful results! Before the initiative, our NPS was at 25 with a total revenue review of $900,000. However, after implementation, the revenue has soared to $1,300,000. Overall, the journey toward improving CX has been fruitful, and success can be seen through these tangible outcomes."

Then showcase additional evidence as well. For instance, highlight how you were able to convert Detractors into Promoters, acquire new customers, leverage the power of positive referrals, nurture customer loyalty, and engage in cross-selling to our existing customer base.  

In today's fast-paced and competitive business world, delivering an exceptional customer experience is the key to thriving and standing out from the crowd. By going above and beyond to delight your customers, you can foster loyalty, drive repeat business, and ultimately boost your bottom line. However, optimizing customer experience requires a strategic approach that delves deeper into understanding key drivers and their impact on business outcomes. 

So, grab your surfboard and set out on your CX journey. Embrace the challenges, navigate through distractions, and focus on those key drivers that will make all the difference. Just like the surfer who rides the perfect wave, your determination and strategic approach will lead to remarkable results in customer experience, value, and revenue.

To your success,
Kamil

#CX #VOCCustomerInsightUnderstanding #MetricsMeasurementandROI #CXStrategy

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Did I miss something important? Let me know if you have any ideas, thoughts, or questions.

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