“Gone are the days of the corporate brand being controlled by the C-suite or marketing ivory tower. Today your brand is what your audience says it is.” – Mark Sunday, CIO, Oracle
It’s been nearly two decades since Cuba Gooding Jr. convinced Tom Cruise to scream “Show Me the Money” in Jerry Maguire. That exact phrase might be out of style this millennium, but the message behind it is evergreen to anyone trying to get budgetary and other support for an important business initiative. Case in point: Some executives and investors might not see customer-focused digital transformation projects as a priority, even if you know that it has to be a critical part of your competitive strategy.
If some stakeholders aren’t on the same page with you, here are some facts that you can share.
Companies that put a premium on customer experience outperform their industry peers in:
• Profitability. When companies prioritize the customer experience, they generate 60 percent higher profits than their competitors.* A 10 percent increase in customer retention yields a 30 percent increase in the value of the company. And a 5 percent increase in customer retention can increase profits by 25–125 percent.
• Company performance. According to Watermark Consulting, firms that excel in delivering superior customer experiences have outperformed the S&P 500 index by nearly 30 percent over a six-year period; those that deliver poor experiences underperform by more than 45 percent.
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In addition, Gartner’s 2014 CEO Survey shows revenue growth as the most pressing strategic mandate in business today. When asked for the top priority in technology-related business capabilities to support this growth agenda, CEOs identified digital marketing, followed closely by customer experience.
* Gartner Group, “Leading on the Edge of Chaos,” 2013
