Brands of all sizes are missing out on the business benefits of customer loyalty programs, according to a survey from Satmetrix: Fully two-thirds of those surveyed say they cannot prove or cannot measure the return on investment (ROI) from customer experience management (CEM) initiatives.
Among the companies surveyed, 40% say their CEM initiatives are unproven, and 27% say they do not know or cannot measure the ROI of CEM programs. By contrast, nearly one in five say their efforts have been strong (16%) or transformative (3%):
Below, additional findings from the Satmetrix Customer Experience Industry Survey 2012.
Among the companies surveyed, large organizations (those with annual revenues over $500 million) have the highest adoption of CEM initiatives, at 63%, whereas smaller companies (less than $10 million in annual revenue) have far lower adoption rates: 34%, on average.
Some 20% of smaller companies have no CEM initiatives in place at all.
Most Systems Built In-House
Most CEM systems are developed in-house: Among those with CEM initiatives in place, 58% of large companies have built their systems in-house, as have 73% of small companies.
Asked to identify the biggest challenges in running customer experience initiatives, companies identified a range of issues including:
- Closing the loop with customers: 24% of larger companies and 21% of smaller businesses find it hard to close the loop with customers. (That means customers who give feedback may feel ignored.)
- Aligning metrics: 11% of larger businesses and 14% of smaller ones struggle to find the right metrics to use.
- Finding the right people: 12% of larger business and 14% of smaller ones find it hard to get employees engaged in CEM initiatives.
- A strong vision: 15% of larger businesses and 7% of smaller ones have a lack of vision about how CEM will help the company.
Social Media Adoption
Companies were also asked about their social media use: More than one-half are already using Twitter (55%), Facebook (59%) and LinkedIn (52%) to communicate with clients and prospects. In addition, fully 10% of companies are planning to adopt social media channels in 2012.
About the data: Findings are based on a survey of 1,000 companies of all sizes, conducted in March 2012.
Continue reading "Customer Experience Initiatives Lack Proven ROI Value" ... Read the full article
MarketingProfs provides thousands of marketing resources, entirely free!
Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the house...delivered right to your inbox! MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer.
You may like these other MarketingProfs articles related to Customer Relationships:
- Boost Your Sales With Strategic Gifting [Infographic]
- How to Use Empathy in Your B2B Brand Storytelling
- The Role of Customer Empathy in the Future of Marketing
- How to Offer More Value to Your Crisis-Stricken Customers [Infographic]
- Planning Your COVID-Related Communications: A Flowchart [Infographic]