Dive Brief:
- Even though 80% of business leaders think they're meeting customer expectations, just 24% of consumers agree, according to an Amdocs Studios survey of nearly 1,000 business leaders and more than 2,000 consumers released last month.
- Nine in 10 business leaders say that the trench between expectations and reality is important to bridge now. Nearly half say the gap is widening.
- Business leaders say lack of training and unclear CX metrics are the top reasons for the CX perception difference, according to the survey.
Dive Insight:
Businesses are missing the mark when it comes to meeting customer expectations in part because they aren't investing enough in it.
Despite 92% of business leaders stating that CX is a main or increased focus, only 28% believe CX is “extremely important” to invest in. Another 43% say their current investments aren’t producing returns.
Companies have trouble bringing together CX efforts and the bottom line — which causes executives to underestimate the power of experience.
The first step to understanding how CX improves profitability is aligning metrics with broader business goals, according to Thomas Randall, advisory director at Info-Tech Research Group.
“Metrics like net promoter score, CSAT or CES only matter if they correlate with revenue, retention or cost efficiency,” Randall said in an email. “Link these to KPIs, such as repeat purchase rate, churn rate, upsell rates and so on.”
While tracking customer sentiment is important, it works better when sentiment is aligned with behavior across entire customer journeys, including onboarding, support and renewal, according to Randall.
“Look beyond single touchpoints, and map out key journeys to measure drop-offs, friction and success rates,” Randall said. “Behavioral indicators, such as compliance frequency or product adoption, are more reliable markers of experience quality.”
Companies can also identify the CX investments that will have the biggest impact, according to Jeannette Michels, head of marketing (experience design & digital engineering) at Amdocs. The size of the investment won’t necessarily reflect the return.
“Focus on outcomes, not effort,” Michels said in an email. “It’s not about how much you’re doing — it’s whether it’s making a difference. Simplify, streamline and measure impact, not activity.”
