The ROI of CX: Bridging the Business Gap
In the world of customer experience (CX), few things are as tantalizingly elusive as proving the financial impact of CX investments. Leaders often cite improved customer satisfaction, higher Net Promoter Scores, or reduced churn, but how often do these metrics directly tie to the bottom line?
In a recent conversation with Robert Bradshaw, Founder and President of WiserOwl, and Chris Lawson, Co-Founder and Customer Success Executive, they shared their perspectives on how decision intelligence can help CX leaders quantify their contributions and bridge the gap between CX and siloed business units.
The Founding Frustration
When asked what inspired the creation of WiserOwl, Bradshaw and Lawson pointed to a consistent pain point among CX leaders: the inability to articulate the true cost of problems and the ROI of solutions before making decisions. “Leaders wanted their operations to be seen as strategic assets, not just the cost of doing business,” Bradshaw explained.
This challenge became the foundation of WiserOwl’s mission: to provide CX organizations with decision intelligence that aligns financial performance with operational goals.
The Misstep in “Data-Driven” Strategies
Organizations frequently claim to be data-driven, but Bradshaw highlights a common pitfall: the relentless pursuit of accumulating more data without purpose. “Just like an airplane is useless without a pilot, data without guidance is useless,” he quipped. Instead of chasing data for its own sake, Bradshaw emphasized the importance of asking better questions.
He argued that CX organizations must focus on questions that bridge CX and enterprise objectives, fostering collaboration across the organization. By prioritizing clarity and purpose in data usage, organizations can uncover actionable insights that resonate beyond the CX function.
Removing the CPC Straitjacket
Bradshaw and Lawson offered a critique of cost-per-contact (CPC), a widely used but flawed metric in CX operations. Bradshaw referred to CPC as “a straitjacket,” highlighting four significant issues:
- It fails to provide a level playing field, especially when factors like raises for top-performing agents artificially inflate costs.
- It lumps countless variables into a single metric, making it difficult to deconstruct and manage effectively.
- It lacks a clear connection to ROI.
- Leadership often uses this unmanageable “indicator” to make decisions.
Bradshaw described CPC as turning CX operations into a game of chance:
“It’s like spinning the CX wheel of fortune and hoping it lands on a good number.”
Instead, he and Lawson advocate for a cost-efficiency approach—a granular, bottom-up methodology that evaluates how every dollar spent generates customer engagement. This strategy, they explained, not only clarifies ROI but also provides a unifying framework for CX to demonstrate its value enterprise-wide.
Transformative Case Studies
Bradshaw shared an example of how decision intelligence transformed operations for a large insurance firm. Facing a CIO who required concrete financial savings to approve projects, the contact center leveraged WiserOwl’s analysis to quantify the impact of improving screen-pop functionality.
The result? A projected $500,000 in annual savings, coupled with a 25% increase in first-contact resolution (FCR) and a 20% reduction in contacts.
“It’s not just about cost savings,” Bradshaw explained. “It’s about enabling CX to demonstrate tangible, strategic contributions to the business.” This example illustrates how targeted decision intelligence can bridge the gap between CX and enterprise leadership.
Breaking Down Silos with Financial Intelligence
One of the cultural challenges WiserOwl often encounters is organizational silos. Bradshaw observed that financial language, grounded in cost efficiency and ROI, can bridge these divides. Framing CX challenges in financial terms fosters collaboration by aligning priorities across departments.
For example, demonstrating the cost of a technology issue to a CIO or the financial impact of a product issue to a CMO often elicits swift action and gratitude.
By translating CX metrics into enterprise-wide financial impact, CX leaders can shift perceptions of their role from operational cost centers to strategic contributors.
The Role of AI and Decision Intelligence
Artificial intelligence (AI) is a hot topic in CX, but Bradshaw and Lawson caution against inflated expectations. “AI can automate tasks but won’t inherently provide transformative insights or strategies,” Bradshaw noted. They recommend first evaluating the cost efficiency and ROI of existing CX processes and channels before considering AI deployments. Only after understanding the financial and operational implications should organizations decide where and how to invest in AI.
The Next Frontier: CX as a Strategic Asset
Looking ahead, Bradshaw and Lawson envision a future where CX intelligence becomes a cornerstone of enterprise decision-making. “Cost efficiency and ROI will always govern enterprise decisions,” they emphasized. For CX to thrive, it must align itself with these principles and demonstrate its ability to generate measurable business value.
WiserOwl’s approach showcases how CX leaders can elevate their roles within organizations by focusing on actionable financial insights and aligning operational goals with enterprise objectives. As Bradshaw advised: “Start with the right questions, prioritize cost efficiency, and embrace a financial language that resonates across the enterprise.” This mindset positions CX not just as a function, but as a driving force for sustainable business success.
