An estimated 70% to 90% of merger and acquisition (M&A) transactions fail to achieve expected financial and strategic results.
All too often, when M&A deals do go wrong, there was ineffective due diligence, due diligence that lacked rigor and the capability of uncovering hidden risks – like a second-rate customer experience.
CCMC’s CX DiligenceTM offers M&A decision makers a turnkey solution for determining whether your mergers and acquisitions (M&A) targets are customer experience (CX) leaders or laggards.
Why is it more important than ever to include a robust evaluation of the customer experience in your due diligence of companies you are looking to merge with or acquire?
Research suggests that the CX has a profound impact on short- and long-term business success. For instance, by the end of 2020, CX was expected to overtake price and product as the leading brand differentiator.
Inasmuch as the value of the target’s customer relationships are central to expected risk, profitability, synergies, and growth, it is essential that due diligence authentically capture and represent the Voice of the Customer (VOC).
CCMC’s CX DiligenceTM provides you with privileged and unfiltered insights into the target’s customer relationships and the experiences delivered, yielding vital market intelligence that might otherwise be masked during traditional due diligence.
Oftentimes, if CX is considered at all, due diligence includes little more than a compulsory reference check with one or two target-picked key accounts. CX Diligence™ is different.
You will gain a deep, enriched understanding of the target’s customer portfolio as a long-term asset or risk.
How do we do this?
In an in-depth dialogue with key decision makers, we pose and answer the substantial, “golden questions” – those that tell you more than the question itself would imply.
CX Diligence™ probes the essence of the customer experience your target has created by validating performance on:
- Key business drivers;
- Identifying customer points of pain;
- Uncovering competitive strengths and threats;
- Revealing value and growth opportunities; and
- Pinpointing mission-critical functional dependencies.
Our analysis of the information we gather will ensure you can fortify your post-transaction playbook by:
- Identifying CX improvements deemed necessary to fulfill your investment goals;
- Determining the strategic and operational CX prerequisites to post-transaction success; and
- Nurturing alignment on going-forward expectations with your target.
Our CX DILIGENCE™ Process
Our simple 5-step process is designed to be completed in lockstep with your sense of urgency. CX DiligenceTM can be finished in as few as two or three weeks and includes:
- A kickoff meeting with you and your target;
- Identification of five to ten of the target’s key accounts and the key influencers that should be interviewed;
- Thirty to forty-five minute telephone or virtual interviews with all key accounts identified; and
- Analysis of the data collected and presentation to your executive team in a sixty-minute telephone or virtual round table briefing.
Martin, R. (2016). M&A: The one thing you need to get right. Harvard Business Review
Walker Information, Inc. (2019). Customers 2020: