A LinkedIn colleague, Alex Meade, recently posted about too many Customer Experience (CX) Influencers out there posting too much CX Theory. In the same post, he also said there are not enough CX Leaders posting practical advice to help others in CX be successful. Challenge accepted! Let’s talk about CX ROI, shall we?
The topic of Return on Investment in CX has been ongoing. I am also hearing through the ‘CX Grapevine’ that some CEOs are putting an end to budgets if they can’t show a real return this year. Perhaps Harley Manning’s 2020 predictions via Forrester will finally be coming true in 2021 (access Harley’s Forrester blog here). There have been countless articles and posts on how to calculate ROI, but they have are all doomed to failure. Why? Because they don’t take a CFO’s approach to calculate ROI. And by this I mean a financial model.
So, I am attaching a financial model to calculate CX ROI to this post. For free. The green cells in the Excel doc are the ones where you have to input your data. So you will have to find data like your company’s annual sales, gross margin, churn rate, pipeline as a percentage of Sales, etc. These are typically numbers CX Leaders and Practitioners don’t have or haven’t asked for. But you’ll need them.
The cells in yellow at the bottom of the Excel are the outputs. There are equations in there you don’t want to mess with.
Some who read this post are more financially savvy than others. So if you take this and improve it, please share it. And send it back to me too!
I hope you found this post a little bit helpful and that it helps you get a little bit better every day.
