I would say Yes and No as this totally depends upon the timeframe the company is looking at.
Let’s look at it this way; If the company is laying down a structured approach for customer experience initiatives and implementing multiyear strategic goals, company is going to enjoy long lasting benefits. However, if the company is looking for short term gains, they will begin to realize only partial benefits in the beginning and might think that being customer centric is not profitable. But the truth is that they will realize more benefits once the company starts getting matured in Customer Experience integration.
The early adopters are enjoying benefits like low attrition, better customer satisfaction, improved net promoter scores (NPS), lower operational costs and are able to provide customers a positive, memorable and enriched experience. These companies are recognized as leaders or pioneers in the CX area.
HBR analysis of 37 Fortune 500 firms that restructured into a customer-centric approach found that their financial performance dropped by 39% on average from their pre-restructuring levels due to coordinating costs resulting from internal conflicts, higher complexity-related costs and losses of economies of scale. After 10 quarters, however, their financial performance exceeded pre-restructuring levels by 11% on average due to higher customer satisfaction (So benefits of being customer centric starts roughly after three years).
It’s quite evident that restructuring of any organization requires huge amount of time, money and buy-in from leadership. Also, when these organizational level changes happen, they become a massive transformation encompassing almost all departments within the company e.g. Finance, HR, IT and other functional areas. To make this happen, CFN’s framework is explained below to highlight various stages and the key activities performed during the stages.
Our past engagement experiences suggest that there are few quick wins in a company which may yield immediate results like implementing/enhancing the Voice of Customer (VoC) program, implementing better colleague engagement initiatives and performance management based on customer goals etc. These measures may take about 4-6 months to implement and company will see financial benefits within 15-18 months.
By this time company understands the criticality of customer centric culture and exhibits willingness to accept even massive changes.
To know where your company stands today in terms of Customers Experience, take our Best Practice Survey and you will receive your company’s CFN RatingTM and comparison against your competitors.
CustomersFirst Now (CFN) has been refining our CX solutions for more than 40 years – working with and for many Fortune 100 companies. We provide the only proven, predictive process that links Customer Delight to financial performance by incorporating and measuring CX Best Practices across all key business disciplines. For more information contact Amit Garg, Data Scientist, at firstname.lastname@example.org