Return On Customer Experience

Effective management of the customer experience across all touch-points, particularly those customers deemed most valuable, is the key to building customer commitment, retention and sustained financial success.

Millward Brown Optimor's customer experience optimization model is based on two key principles:

  1. The need to measure all touch points in the same way, so that we can compare their impact. This means putting holistic measurement systems in place, which include both tangible touch points such as service delivery and intangible touch points such as brand communications.
  2. The customer experience must be measured in a currency that the whole company understands. The only common currency between all these functions is money.

Case Study

Background and Objectives
An iconic luxury fashion brand wanted to have best-in-class customer experience across distribution channels to drive growth and differentiation. Millward Brown Optimor was engaged to assess the current customer experience and identify and prioritize opportunities to improve the experience across channels.

Work performed
We conducted in-depth interviews with internal stakeholders at the corporate and retail levels across all functions. Combining insights from these interviews with extensive store visits across the country, we developed a series of hypotheses on opportunities to improve the customer experience. We then tested these opportunities in a market research study among customers and prospects and then valued each opportunity.

Results
Our analysis identified a potential revenue uplift of 27% based on the opportunities valued. We statistically grouped and prioritized the opportunities into four themes around personalized customer service. These findings are being used to guide further implementation research, marketing allocation and personnel training.

RoX - "Return on Investment in Experience"

At Millward Brown Optimor we measure the extent to which each of our clients' touch points affect financial results. For each distinct customer segment, the experience drivers, revenues and profits are overlaid so that any changes in the experience can be related directly back to financials. This leads to a "return on investment in experience," or RoX, for each touch point. Investments and actions can then be prioritized according to the degree of business impact.