Use The Right Metrics To Deliver Great CX
Customers no longer give second chances. If the experience they get when interacting with your brand does not meet their expectations then they don’t return. It’s that simple. The 2018 KPMG Customer Experience Excellence report states this explicitly when it says that if you don’t meet customer expectations then you “rarely get a second chance.”
But the KPMG report also has some troubling insights. According to their data, customer expectations are increasing much faster than the ability of most companies to deliver this expected level of service. One of the problems here is that there has been a quantum leap in expectations because customers see incredible service from a brand like Amazon then they expect to receive the same from their energy company, government department, or just other retailers.
How do you square this circle? Your customers want more than you can possibly deliver? The first step is to ensure that your CX metrics are really measuring the interactions that matter, each step along the customer journey where the brand and customer interact and those expectations can be either met or disappointed.
Which metrics are you using? There are many industry standards out there now. Net Promoter Score is common; although NPS doesn’t give any immediate alert that a customer has tired of your brand and switched to another it is a useful real-time leading indicator of what customers feel about your service. Customer Effort allows you to measure how easy customers find the journey and purchasing process. Customer Sentiment is the analysis of what customers say about your products and service. It can be captured through surveys and questions from agents or even by monitoring social media channels. Customer Engagement looks at how often, how long, and how detailed your interactions are. Lagging Indicators, such as customer lifetime value, are useful when looking at the longer-term customer relationship.
Here is the dilemma. There are many different types of metric and some are favored over others in different industries. Some are focused on the immediate thoughts of the customer and some are a slow-burn look at what this customer is worth to your brand over several years. How do you combine them to create the best possible metrics dashboard for your business?
You need to study the customer journey for your business and not just accept that the metrics used by a similar business are correct. You need to see where the interactions take place and determine which metrics can influence the behavior of your team so positive interactions are created. Then you need to determine the best blend of real-time monitoring and longer-term customer value assessment.
All this will be bespoke because every business is different. Some industries may use a similar customer journey, but you will never agree on the priorities – every company is different. If you don’t know your customer journey and where the important interactions are taking place then you can never be sure that your metrics are giving a good picture of what is going on and driving better behavior.
Let me know what you think about the importance of CX metrics by getting in touch with me directly via my LinkedIn profile.
Photo by Carol VanHook licensed under Creative Commons