Rapid trends in the experience economy have made customer experience (CX) the primary differentiator for organisations of all sizes and industries. According to one study, 74 percent of organisations in the Middle East intend to invest more than $200,000 in CX technologies by 2022. However, restrictive legacy systems prevent a company from becoming agile, which is a crucial enabler of revolutionary customer experience strategies that promote end-to-end customer interaction. Adopting technology that allows business to quickly adapt to changing client needs is essential to CX transformation.
A strong business case is needed before investing in CX tech. This approach used to be straightforward: propose a solution, give a precise cost-benefit analysis, explain the implementation, and secure executive buy-in. However, things are more complicated now.
CX transformation is a more sophisticated, interdependent undertaking that extends beyond the contact center and alters the internal dynamics of a business. When the focus shifts from individual customer interactions to holistic end-to-end relationships, for example, the contact center can no longer act alone and must collaborate with sales and marketing team to enable a broader approach.
With so many stakeholders at the table, developing a business case for CX transformation necessitates new approaches to persuade the C-suite to adopt the innovative, agile technologies required to evolve and remain competitive. Too many CX efforts fail before they even begin because not all stakeholders share the same vision.
Leaders need new business case tactics to help stakeholders grasp the value and viability of their idea. Here are six ways to get started:
- Lay the groundwork
Leaders must begin generating consensus from the ground up to get executive approval for their business case. This involves colleagues invested in the solution across company functions.
Managers must align IT and CX leadership and then develop bridges with all teams involved in the customer experience.
It is essential to find shared goals and priorities across divisions that correspond with the overall business strategy, such as increasing efficiency, growing customer loyalty, or improving employee retention.
- Lead with empathy
CX transformation goes beyond incorporating new technology. It also requires all involved business divisions to adapt their culture and adopt new solutions, workflows, and behaviors. Leaders must cultivate cooperation to get that commitment and maintain two-way communication with the team. They must listen to others’ concerns and ambitions. Empathising with the audience builds trust and strengthens cross-functional partnerships to help leaders advocate for change.
- Calculate the actual TCO
While the upfront expenses of deploying a new solution may be more than the ongoing expenditures of the present system, organisations should not overlook the hidden costs of the status quo. For a fair comparison, businesses must consider the total cost of operation (TCO), which includes all associated expenditures — facilities, employees and professional services, hardware maintenance, and security management.
Organisations must remember that implementing a solution that increases their infrastructure’s agility as the experience economy advances allows them to pivot, resulting in additional savings across the business.
- See the ROI big picture
Calculating the ROI for the organisation will help stakeholders understand the business case. Occupancy and First Call Resolution (FCR) metrics should be converted into revenue or cost reductions.
Beyond primary use cases and KPIs, collateral advantages can be identified and quantified to demonstrate CX transformation’s worth. Self-service solutions enhance KPIs like wait time and abandonment. They’ll also promote morale and retention by improving agent experience.
The ROI estimates should include organisation-wide effects of CX transformation since it won’t just affect the contact center. For example, migrating to the cloud reduces IT maintenance, and predictive engagement enabled by artificial intelligence can boost sales and marketing income and cut costs.
- Practice the art of the practical
The best solution is worthless if it cannot be implemented. A business case must provide enough detail to persuade stakeholders that it is actionable, viable, and likely to succeed. The plan should consider including time-to-value milestones, KPI targets to monitor achievement, risk mitigation methods, and proof points such as success stories and industry benchmarks.
- Tell a compelling story
More is not always better. It might be tough to build a clear picture when facts and information are abundant. This is why CX leaders must use a compelling story to walk stakeholders through their business case, making significant connections between industry trends, current performance, business strategy, and the predicted impact of their proposed solution.
In the modern experience economy, the only constant is change and this necessitates agility. Rigid systems and processes are no longer feasible options. Organisations must adapt their technological environment and corporate culture to increase agility and innovation potential to remain competitive. It’s a monumental undertaking that requires strong backing from a broad spectrum of stakeholder, some of which may disagree with this vision. While CX transformation may sound appealing, some stakeholders might not comprehend its value. It is up to the leaders to persuade these stakeholders by developing an ironclad business case that explains exactly what’s at stake — and how much there is to gain with the correct solutions. This will trigger the transformation of the organisation.
