We’ve all heard of the saying that “communication is key”. But what does that really mean, especially when it comes to business communications? Let’s take a look at how to measure the business impact of creating and sending customer communications.
Utilizing customer communication management (CCM) software not only improves the metrics related to operational efficiency but also those associated with customer experience (CX) related metrics. Which set of metrics does your organization need to improve?
CX Strategy and KPIs
As a CX leader, you should focus on how to develop a business value-based approach to your CX strategy, how to identify KPIs that measure relevant business impact, and most importantly, how to connect strategy to KPIs to business outcomes.
Approaches to CX Strategy
One widely accepted business paradigm is the Value Discipline Model. This model describes three essential areas that your organization should concentrate on in order to create competitive differentiation and generate business value.
While your organization should work on all three, you will most likely not be able to maintain excellence in all three simultaneously on an ongoing basis; most likely you will pull ahead and excel in one of the three areas.
By reading our ebook, you will begin to understand how to think strategically and to identify the key business metrics that advise your organization of its progress, achievements, and impact. Here’s a quick overview of the three value disciplines covered in the ebook.
Customer Intimacy
How customer-oriented are you? Knowing your customers well helps you build loyalty and trust that leads to revenue growth. Each customer must be treated individually, which includes real-time engagements and predictive analytics, along with many other benefits for the customer.
Product Leadership
Can you accurately predict and respond to customer demands? When it comes to product leadership the focus is on innovation and revenue, more specifically the speed of innovation. Should your sales or adoption rate be lagging, you will want to understand why customers are choosing a competitor’s product over yours.
Operational Excellence
How well do you control your costs? Common KPIs for organizations in all industries to measure this value is the ability to reduce existing costs while avoiding additional or increased expenses. However, ‘cost reduction’ is not always the right answer, especially if it comes at the expense of sacrificing the customer experience and the relationship you have with your customers.
Use a matrix of metrics to monitor, measure, and link CCM and CX to business value.
Identify Key Metrics to Measure
Once your organization knows what the approach(es) to value will be, you then begin to identify the key metrics that you will be tracking and measuring. No single KPI can define the totality of a successful CX strategy. Instead, you must construct a ‘matrix of metrics’ that cross references an array of KPIs that indicates how the carefully crafted CX strategy brings them all together.
Below are just a few sample metrics to consider that link KPIs to your strategy across key stakeholders:
- Increased shareholder value and Earnings Per Share (EPS)
- Revenue growth and cost reduction
- Customer Satisfaction (CSAT)
- Customer Lifetime Value (CLV)
- Customer Experience Index (CXI) score
- Net Promoter Score (NPS)
The above are macro metrics—the bigger picture—that also include many micro metrics. When developing a strategy to improve the customer experience of your business platform, leverage and connect micro and macro metrics.
Conclusion
If you want to add business value through customer communications, then work with a vendor that understands the matrix of metrics to help “move the needle” where you need it moved most. Whether you want to improve operational or CX-related metrics, get in touch with Topdown today!
For more information on linking strategy and KPIs, check out our free ebook.
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