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Article : Building the Business Case For Customer Experience (CX)

#contactcenterworld, @inContact

There’s little question as to the impact customer experience can have in driving business success. A study conducted by NICE inContact found that 70 percent of today's consumers are willing to pay more for a product or service that has an excellent customer service reputation.

In my last two articles, I discussed the new measurements needed to understand modern customer experience and the role of the contact center in bringing those meaningful interactions to life. Here, I will focus on the element of customer experience that appeals to all aspects of the business: the financial benefits. Specifically, the value of moving from on-premises technology to a cloud native platform.

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In discussing the on-premises to cloud migration, inevitably the argument on CapEx vs OpEx arises, but there are more nuances to consider. It is not just about the financial structure; and might not necessarily be a dramatic cost reduction. It could be clear cost reduction in certain aspects, as well as benefit uptakes that aren’t typically quantified in a classic total cost of ownership (TCO) model. Here are some of the most critical areas that need to be analyzed to build a business case:

High Cost of On-Premises

When your license is up for renewal with on-premises software, you are looking at a complete refresh of infrastructure. This cost is not just infrastructure, but the professional services (PS) needed to bring it back to life – people, time, money. Cloud platforms eliminate the need for refresh spending entirely.

Furthermore, cloud native models generally have quicker deployment cycles – days compared to months for the exact same scenario. This essentially translates to less people needed to do the deployment work, which gives businesses the ability to repurpose existing people resources for high-value projects.

Further costs are also dedicated to the resources needed to keep on-premises technology up and running. On average, 20 percent of license fees go directly to maintenance. Not to mention the fees required to update to the latest version of the technology. Cloud native platforms offer a predictable price model and easier maintenance, with the promise of an easy update process. Customers can have the latest innovations at a fraction of a time and cost.

Flexibility of the Cloud

If there is one thing that every contact center leader has to manage, it is seasonal spikes or other cyclical aspects of business. For on-premises technology, scale is typically achieved through heavy investment in hardware, software, people and time. The hassle of getting it all executed is completely eliminated by the elastic and pay-by-drink cloud native model, which also brings in agility and time-to-market benefits – all of which translates to more ROI.

But it isn’t just the predictable spikes that are concerning, what happens when a disaster strikes? For large enterprises, disaster recovery is one of the most critical elements in business design. Premises-based disaster recovery is achieved with a complete replica and is a 2X investment in data center. Cloud platforms remove the need for such hardware, and offer a new peace of mind.

Efficiency & Innovation

Contact centers host a remarkable amount of valuable customer data, and connecting data with various applications can deliver magic. In an age where customer expectations change rapidly, businesses need to be able to tap into this resource as quickly as possible. The cost of integration is huge for on-premises technology, given the vendor lock-ins. But an open, extensible platform enables businesses to have prebuilt or easy-to-build integration across multiple contact center systems.

One audience that particularly benefits from the transition to the cloud is the IT team. On-premises technology involves significantly more IT resources for managing and operating data centers – sheer "keeping the lights on" operations. By removing this level of maintenance from their to-do lists, it frees them up to be an innovation driver, not a cost center for businesses.

The True Value

As an example, NICE inContact commissioned Forrester Consulting to build a Total Economic Impact (TEI) model for NICE inContact CXone cloud customer experience platform. The study found, for a composite organization with 1,100 seats, CXone delivers a three-year total benefit of $25.9 million, which includes a cost savings of $22.4M.

As you start building your business case for a cloud customer experience platform, think through every element that can drive financial impact – improved KPIs, increased customer lifetime value and enhanced technology platform. That is the true differentiator to acquiring, retaining and growing customers.

#contactcenterworld, @inContact

About NICE inContact:
Company LogoNICE inContact works with organizations of all sizes to create customer experiences that create deeper brand loyalty and relationships that last. With NICE inContact CXoneTM, a cloud customer experience platform, we combine Customer Analytics, Omnichannel Routing, Workforce Optimization, Automation and Artificial Intelligence, all on an Open Cloud Foundation to help any company transform every single customer interaction.
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Today's Tip of the Day - Consider Your Center As A Production Line

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Published: Wednesday, August 15, 2018

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