The Road To ROI In Digital Customer Communications

The complexities of measuring return on investment (ROI) in communications programmes can make digital transformation challenging, especially for companies in regulated sectors.

In Episode 1 of our Digital Customer Communications podcast, we spoke to Chloe Taylor about achieving ROI in customer communications.

As CEO of Quietroom, an insight-led communications consultancy, Chloe is an expert on the road to ROI in engagement projects.

You can watch the episode below. ⬇️

Understanding the Complexity of Digital Communication ROI

In many large organisations, communication is often viewed as a standalone function—an isolated piece of the customer engagement puzzle.

However, effective communication is intrinsically linked to broader business goals and must be considered within this larger context.

Measuring the ROI of digital customer communications requires understanding not just the message being delivered but the behaviour it aims to influence.

For many enterprises, especially in regulated sectors like financial services, the push to digital is often driven by regulatory mandates.

Compliance with these regulations adds a layer of complexity to the communication strategy, making it difficult to assess the true value of these efforts.

“It’s not just about sending a message; it’s about understanding what that message is supposed to achieve. Whether it’s driving customer engagement or meeting compliance needs, the goal behind the communication determines how you measure its success.”

— Chloe Taylor, CEO, Quietroom.

By digging deeper into the intent behind these communications—whether it’s to comply with regulations, enhance customer experience, or drive specific business outcomes—organisations can better align their communication strategies with measurable goals.

A report by The Real Economy reveals that 69% of financial services companies believe their digital investments will become more important over the next three years, aiming to improve both customer experience and operational efficiency.

The rising importance of digital channels is further underscored by research from GMS suggesting that 69% of consumers would buy more if a company contacted them via their preferred channel.

The Role of Discovery in Crafting Effective Communication Strategies

Before embarking on any digital communication initiative, it’s essential to engage in a comprehensive discovery phase.

This phase involves asking critical questions about the purpose of the communication and the desired outcomes.

For instance, what does the organisation hope to achieve? Is the goal to increase customer engagement, enhance brand loyalty, or simply meet regulatory requirements?

By defining these objectives early, businesses can develop more targeted and effective communication strategies.

An often-overlooked aspect of digital communication is not the communication itself but the entire customer journey.

Communication should not be viewed as merely the final touchpoint but as an integral part of the entire process, from initial contact to post-interaction follow-up.

By mapping out the entire communication flow, organisations can identify key moments where targeted messages can have the greatest impact.

Sometimes, small adjustments in the process can lead to significant improvements in the overall effectiveness of the communication strategy.

“We often find that small tweaks to the customer journey—whether it’s in the timing of communications or the channel used—can have a disproportionately positive impact on outcomes.”

— Chloe Taylor, CEO, Quietroom.

A HubSpot survey reveals that 44% of leaders believe better measurement of ROI is one of their top priorities for the year ahead, a challenge that is particularly pronounced in the integration of legacy systems and regulatory compliance within financial services.

This complexity underscores the need for a robust discovery phase to clearly define goals and metrics that align with broader business objectives.

Breaking Down Silos: A Unified Approach to Communication

Large enterprises often struggle with siloed operations, where different departments or teams operate independently, leading to fragmented and inconsistent communication.

Overcoming these silos requires a cross-functional approach that ensures all communications are aligned with the organisation’s broader goals and brand values.

One of the most effective ways to unify communication efforts is through rigorous testing.

By regularly testing communications, organisations can gather valuable insights that help refine their messaging and improve outcomes.

For example, while conventional wisdom might suggest that shorter communications are always more effective, testing has shown that in some contexts—such as explaining complex financial changes—customers actually prefer more detailed information.

These insights can help businesses create more nuanced communication strategies that resonate better with their audiences.

“When organisations take the time to test and refine their communications, they can ensure that their messages not only comply with regulations but also truly engage and resonate with their audiences.”

— Chloe Taylor, CEO, Quietroom.

The benefits of testing are also supported by research from HubSpot, which found that A/B testing in digital communications can lead to a 20% increase in conversion rates.

This iterative approach allows organisations to fine-tune their strategies, ensuring that messages are not only compliant but also effective in reaching and engaging the target audience.

Leveraging Data and Technology for Enhanced Communication

In the digital age, data and technology are critical components of effective communication strategies.

However, capturing and utilising data effectively remains a significant challenge for many organisations.

To begin with, businesses need to focus on capturing accurate and relevant data.

This includes ensuring that customer data is up-to-date and reflects the latest interactions and preferences.

Once the data is captured, the next challenge is to use it effectively.

This involves segmenting the audience and personalising communications to ensure relevance.

However, personalisation does not mean creating hundreds of different versions of a message.

Instead, it’s about finding the right balance between segmentation and broad communication to deliver messages that are both relevant and impactful.

“Personalisation is key, but it’s important not to get lost in trying to create infinite versions of a message. Instead, focus on what will make the biggest difference to your audience.”

— Chloe Taylor, CEO, Quietroom.

The importance of personalisation is highlighted by a McKinsey study, which reveals that effective personalisation can lead to a 5-15% increase in revenue and a 10-30% increase in marketing-spend efficiency.

Furthermore, Epsilon reports that 80% of consumers are more likely to make a purchase from brands that offer personalised experiences.

These statistics underscore the significant impact that well-executed personalisation can have on customer engagement and the bottom line.

Embracing AI in Customer Communications

Artificial intelligence (AI) is increasingly being used to enhance customer communications, offering new ways to personalise interactions and improve efficiency.

AI can help organisations process large datasets, enabling more effective segmentation and personalisation.

This allows businesses to deliver highly targeted communications without the prohibitive costs associated with manual processes.

AI also offers significant benefits in customer service.

For instance, AI can assist customer service representatives by providing real-time information and insights during customer interactions.

“AI’s ability to process and analyse vast amounts of data in real-time is a game-changer for personalising customer communications. It allows us to meet customer needs more precisely and efficiently than ever before.”

— Chloe Taylor, CEO, Quietroom.

This not only improves the efficiency of service delivery but also enhances the overall customer experience.

According to PwC, AI-driven customer interactions can improve customer satisfaction by up to 20%.

Moreover, Gartner predicts that by 2025, 80% of customer interactions will be handled without human agents.

These advancements highlight the growing role of AI in customer communications and the potential benefits for both customers and businesses.

However, the use of AI in customer communications is not without risks.

As customers increasingly use AI tools to interpret and summarise communications, businesses must be mindful of how their messages might be altered or misinterpreted by these tools.

This adds a new layer of complexity to communication strategies, requiring businesses to think carefully about how their messages will be received and understood in a world where AI plays an increasingly prominent role.

Strategic Communication: A Path to Measurable ROI

Achieving ROI in digital customer communications is a complex but attainable goal.

By taking a strategic approach—starting with a thorough discovery phase, engaging in rigorous testing, leveraging data and technology, and embracing the potential of AI—businesses can develop communication strategies that not only improve customer engagement but also deliver measurable business results.

Where customers expect personalised and relevant communications, organisations that invest in refining their communication strategies will be best positioned to succeed.

By understanding the broader context in which communications occur and focusing on the entire customer journey, businesses can build stronger relationships with their customers and achieve meaningful ROI in their digital communication efforts.

References:

Digital Transformation in Financial Services, Whatfix, 2023.

The Ultimate List of Marketing Statistics for 2024, HubSpot, 2024

What communication channels do consumers prefer?, GMS, 2024

Digital transformation in the Financial Services industry: Adapt or get left behind, The Real Economy, 2024

How Digital Transformation Impacts Financial Services Companies, EY, 2023.

Prioritise personalisation for 10-15% revenue lift, McKinsey, 2022

Personalisation’s Rights and Wrongs, McKinsey, 2022

Gartner predicts 3 technologies will transform customer service by 2028, Mobile Europe, 2023

New research indicates 80% of consumers are more likely to make a purchase when brands offer personalised experiences, Epsilon, 2018

A/B Testing for Marketing Optimisation, HubSpot, 2024

The Future of Customer Experience in an AI-Driven World, PwC, 2024

The Painful Challenges of Digital Transformation in Financial Services, EasySend, 2023.

Digital Transformation in Finance Case Studies, DigitalDefynd, 2024.

Digital Transformation in Banking (2024 Guide), VisualSP, 2024.

Digital Transformation in Action: Tackling Challenges in 2024 in the Building Society Market, BSA Blog, 2024.

Digital Finance: Does it Change the Trade-off Between Risk and Resilience, Deutsche Bundesbank, 2024.

Reviewed By:

Sabrina McClune, 15.08.24

Sam Kendall, 15.08.24