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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​ (InMoment)​.

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!

  • VoC Surveys
  • Reputation Management
  • Conversational Intelligence

As you may have noticed, combining all three pillars into a full-fledged, integrated CX program, can almost triple the revenue of organizations that only utilize a single pillar for their program. 



The Three Pillars and Their Impact

Pillar 1: Survey-Focused Listening

Improve Customer Loyalty

  • Key Advantage: Implementing inner and outer loop management strategies ensures that feedback is collected and acted upon. This continuous improvement cycle enhances customer satisfaction and loyalty.
  • Impact: Increased loyalty reduces churn, meaning customers are less likely to switch to competitors. Retaining customers is significantly cheaper than acquiring new ones, making loyalty a key driver of profitability.

Reduced Cost-to-Serve

  • Key Advantage: Front-line coaching and channel optimization based on survey data help streamline customer interactions, making support more efficent.
  • Impact: By reducing the time and resources needed to serve customers, businesses can lower operational costs, leading to higher satisfaction and retention.

Customer Referral Impact

  • Key Advantage: Improved CX naturally leads to positive word-of-mouth referrals. Satisfied customers are more likely to recommend your business to others.
  • Impact: Positive experiences shared by customers enhance your brand reputation and attract new business, driving growth.

Pillar 2: Conversational Listening

Improved First Contact Resolution

  • Key Advantage: Automated quality assurance monitoring and scorecards for front-line coaching help resolve customer issues on the first contact.
  • Impact: Effective issue resolution prevents churn by addressing customer pain points promptly.

Improved Self-Service

  • Key Advantage: Identifying interaction types that can be deflected to more efficient channels empowers customers to solve their issues independently.
  • Impact: Self-service options reduce the burden on customer service teams and provide customers with quick, convenient solutions. This not only cuts costs but also enhances the overall customer experience, reducing frustration and potential churn.

Optimized Operational Efficiency

  • Key Advantage: By eliminating the need for extensive post-interaction work, businesses can streamline their operations and focus on delivering value.
  • Impact: Operational efficiency translates to cost savings and the ability to scale effectively. When processes are optimized, employees can spend more time on high-value tasks that directly contribute to customer satisfaction and business growth.

Pillar 3: Reputation Management

Increased Acquisition from Improved Online Reputation and SEO Optimization

  • Key Advantage: Actively managing online reviews and leveraging SEO strategies improve your business’s visibility and attractiveness.
  • Impact: A strong online reputation attracts new customers, driving acquisition and revenue growth. Potential customers are more likely to choose a business with positive reviews, increasing market share.

Improved Customer Loyalty with the Ability to Respond to Negative Reviews

  • Key Advantage: Promptly addressing negative reviews shows customers that you value their feedback and are committed to improving their experience.
  • Impact: Responding to negative feedback can turn dissatisfied customers into loyal advocates. This proactive approach helps mitigate churn, enhances your brand’s image, and fosters long-term loyalty.

A Final Word

In a landscape of giants, revolutionary AI tech that won’t slow down, and daily competition that will stop at nothing to destroy you, a well-executed, integrated CX program is not just a differentiator, but tablestakes for customer acquisition, retention, and growth. 

An integrated CX program aligns every aspect of your business with the goal of delivering exceptional customer experiences, consistently and proactively. It involves understanding and meeting customer needs where they’re at, at every single touchpoint. 

We hope that the customer stories, actionable strategies, and calculators (finally) give you enough compelling evidence of the significant ROI achievable through investing in an integrated CX program. 

To facilitate your journey towards a world-class program, InMoment offers the highest-ranked CX platform in the world. Don’t take our word for it—check out the 2023 G2 Report for CX platforms. From strategic consulting to customizing our platform to your exact business needs, we are here to assist you every step of the way. Our team of experts is dedicated to help you design and execute a CX program that delivers measurable results, similar to the ones you just read about.

Stand at the forefront of your industry by scheduling a demo with us today. We’re here to help grow your business!

Sources:

Forbes, https://www.forbes.com. Accessed 24 June 2024.

Emplifi, https://emplifi.io/. Accessed 24 June 2024.

InMoment, https://inmoment.com/. Accessed 24 June 2024.

Emplifi, https://emplifi.io/. Accessed 24 June 2024.
Oracle, https://oracle.com. Accessed 24 June 2024.

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