One of the biggest challenges for public companies is deciding if their shareholders will respond to customer experience (CX) metrics in earning calls. It can be a hard sell to convince executives and shareholders that CX metrics are tangible and impact earning potential. Those who risk it tend to do it poorly, which leaves them in a vulnerable position trying to field questions, including how CX metrics reflect key business results or help a business meet its goals.
However, savvy marketers will tell you that customer-centric strategies are critical to customer-led growth, which has a direct impact on sales and customer retention. The question is, how do you ensure CX metrics make sense to stubborn analysts and shareholders who fail to understand their relationship to financial performance? Support your findings with facts.
Share the Why’s Behind CX Metrics
Because CX metrics aren’t subject to SEC regulations or GAAP (generally accepted accounting principles) you can be sure that suspicions will be raised about the scores you report. People will want to know your methodologies to ensure you aren’t inflating numbers to paint a prettier picture of performance. Is it a distraction, or based on facts? Be prepared to describe your metrics and their direct impact on financial performance to avoid uncertainty and rally support around your findings.
Understand Changing CX Metrics
Understanding the causes behind CX metric changes helps maintain overall credibility when including them in your earnings calls. Do your research to understand what could have possibly impacted customer perceptions and sentiment so you can tie them to specific changes. For example, was there an event such as conflicts that impacted the economy or fluctuations in the stock market that might have caused worry? Being able to explain possible reasons for changes keeps your CX metrics relevant and credible.
Set Metric Goals to Mark Achievements
Setting CX metric goals provides numbers of comparison, so your metrics don’t appear arbitrary. Realistic goals connected to specific company objectives create a connection between CX and performance. It also helps demonstrate how CX metrics are measured, while ensuring the numbers in this scope of your earnings report influence specific elements of business performance.
Report Logical, Relevant CX Metrics
The types of metrics you report impact their relevance, helping people understand their purpose. Ensure the metrics support a specific rationale that people can relate to and easily tie to business performance and objectives. Keep in mind these metrics might vary based on different customer segments, such as setting different goals for each segment or varying needs of different segments or regions.
Compare CX Metrics to Competitors
Benchmarks help set standards that either mirror, outperform, or fail to meet the mark of other brands and overall industry performance. Competitor analysis/comparison has two purposes:
- Showing that CX metrics are taken seriously in the industry to support their relevance to your earning call, and
- Tracking CX competition to measure your own performance
Because data-gathering methods impact your CX metrics, independent surveys tend to reflect poorly on the perceived value and accuracy of the measurements. People see an opportunity for internal manipulation compared to independent, comparative third-party benchmarks. By detailing the data collection and analysis method you can reduce skepticism and clarify the effects CX metrics have on shareholder value.
Partnering with a business process outsourcing company that understands the intricacies of CX as a business function like Anexa can help your business deliver the insights shareholders desire to understand the impact customer service has on your bottom line. Contact Anexa today to see how we can support your customer-centric activities.