Measuring the ROI of Digital Customer Experience
Marketers are under tremendous pressure to demonstrate ROI from investments being made in enhancing the customer experience. The ability to demonstrate real returns is becoming increasingly important.
Imagine being able to discover why your customers experience friction on your site or gaining insight into which aspects of your digital experiences people find pleasing or frustrating. Even better, what if you could know which customer experience improvements would have the biggest revenue improvement and deliver the best ROI? The right customer experience analytics tool will provide this level of visibility—visibility that can offer tangible ROI benefits.
Research indicates that customers demand prompt service from digital companies, creating a link between analytics and marketing that is essential for optimizing interactions across your digital channels. The reality is that, if you can’t deliver a seamless and differentiated digital experience, you risk falling far behind the digital disruption curve and losing out on the brand value opportunity that the digital channel presents.
Barriers to Achieving High ROI on Digital Customer Experience
In this new era of digital disruption, marketers face barriers when trying to see high ROI on their digital customer experience efforts. These barriers include:
- Digital friction: Customers have high expectations and any friction in the journey can easily result an abandoned purchase. For example, forcing first-time customers to create a login (rather than offering a guest checkout) can quickly result in lost business. How can marketers address any digital experience friction or potential customer struggles in the buying process to avoid potential loss of revenue?
- Identifying customer preferences: You can collect all kinds of information about current and potential customers, but identifying their specific digital preferences can be a challenge. However, without this customer intelligence, you’re likely to make mistakes that deter users from your digital channels. What can marketers do to make better use of the extensive data that they have in determining customer wants/needs?
- Optimizing customer experience: Opportunities for improvement, from remediation of customer struggles and from optimization to deliver a better ROI, can be obtained using analytics that demonstrate which journeys have been most effective. What is the best method for improving the customer journey on digital channels?
A recent study from PYMNTS found that online merchants are losing nearly $170 billion as customers abandon their online buying processes. To regain this lost revenue, marketers must not only identify struggles but also identify opportunities to deliver increased revenue resulting from an improved customer experience.
Solving the Customer Experience ROI Dilemma
Even in the late 19th century, John Wanamaker recognized the classic marketing data problem when he said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” Now, big data innovation and digital channels are giving marketers more customer data than they can handle.
The new challenge is taking this data and gaining real-time, actionable insights regarding customer’s digital experiences. Dedicated customer experience analytics tools can help to achieve the level of agility necessary to meet the ever-changing demands of digital customers who, in this digital age, have extremely high expectations.
These benefits only scratch the surface of what a customer experience analytics tool like UserReplay can provide. If you want to learn more about the difference UserReplay can make in your business, contact us today for a free demo of the solution.
John Thompson, CEO, UserReplay