How do you evaluate ROI on CX?
The ROI for CX is a long-term derivative, either coming from process gains, revenue growth, gaining loyalty, or productivity improvement.
The commercial side of CX requires a heavily loaded budget. But CX should be a part of product and service development in every organisation.
If the feedback of the customer is not taken into account when designing a new product or offering a new service, great CX cannot be achieved.
The customer first approach has to be embedded across the organisation in the BFSI sector. Online banking and mobile banking are examples of how the BFSI sector has achieved this, but more can be done.
Employees in the frontend or backend need to be constantly skilled and developed to manage the evolving customer needs. Pine Labs, Stripe, Wechat are startups who have cracked this very well.
Budgets are required but CX must be embedded in service and product design. Pumping money into a failed approach or product cannot bring positive gains.
How do you secure budgets for CX?
Convincing the board and top management to get budgets is a CX leadership responsibility. Detailing the use case and the CX journey and showcasing how in the long term, the cost of operation will come down or revenue growth can be achieved, is a great way to approach this. CX is an icing to approach the customer with - if you have the right services and products in place.
CX leaders need to be pragmatic, and if the business case is presented well, getting budgets should not be difficult.
The challenge is to secure budget for a CX project when it is competing against revenue generation projects. Thus, defining the ROI of a CX initiative, developing a performance metrics and tracking mechanism that showcases impact beyond call volumes is vital.
- Dr. .Joseph George, CIO, National Bank of Fujairah
CX is complicated
Post pandemic CX is a complicated affair. The amount of fraud attacks are growing at a fast pace, and unless these are tackled appropriately, the regulators will revoke the BFSI’s license to operate. A lot of the paperwork is required by the central banks and therefore creating paperless journeys to provide great CX is not always possible and will lead to failure in audits.
CX Leaders must reimagine human experiences keeping these constraints in mind.
Next: Tech Trends - Digital transformation in BFSI. Read on.