ROI and ROE
The cost of a customer experience management and measurement program is an investment in a company's growth and an acknowledgement of the value of its customers. It is important to be able to measure the effect of the program and to determine if the investment is paying off. There are two critical components to examine when considering the value:
Return on Investment
ROI is a simple concept that answers the question, "What measurable impact was made on our bottom line through the expenditure?" The best chance at getting good measures is by creating your program with a clear understanding of what will be measured "pre" and "post" implementation. Quantifying the investment may be as simple as taking the average value per customer and multiplying it by customer retention rate improvement. The key is to create metrics before you begin.
Return on Experience
It is much easier to measure changes in behaviors than the effect of those changes on the bottom line. Fortunately, customer research has clearly demonstrated that higher levels of customer service yield greater customer satisfaction and, consequently, greater sales and profits. So, by measuring changes in behavior and the impact of those changes on the quality of the customer experience, it becomes possible to establish a measure of "return on experience." A program that results in positive behavioral changes and enhanced customer experience will yield a positive ROE and ultimately an increase in ROI.