Tag Archives: net promoter

Measuring Customer Experience: Where do we go from here?

There has been a dramatic rejuvenation in the measurement
and usage of customer experience data in the past decade. Frederick Reichheld’s
2003 Harvard Business Review article, ‘The OneNumber You Need to Grow,’ sparked a resurgence in the assessment
and importance placed on customer feedback.
For better or worse, Reichheld’s Net Promoter Score (NPS)
grabbed the attention of senior management in ways that customer
satisfaction/loyalty research has struggled to do. Overall, this attention has
been good for our clients and for us as researchers, but NPS isn’t the panacea
that it is sometimes made out to be. There are several material
methodological issues that need to be considered:
  1. The
    scores can be unstable due to using only portions of the scale, and the
    mathematical operation on them. For example, the American Customer
    Satisfaction Index (ACSI) has a margin of error of +/- 3.3%, while the NPS
    score on the same data has a margin of error of +/- 10%.
  2. Consistently,
    NPS is closely linked to customer satisfaction and overall quality; if
    your business is more driven by value and price, NPS may not fare as well.
  3. Differences
    in likelihood to recommend don’t automatically mean differences in
    loyalty.
    • Levels
      of involvement with product are a mitigating factor.
    • ‘Promoters’
      are not equally loyal.
In particular, B2B researchers have struggled to see
the relevance of recommendation as the key measure of
success. Fortunately, there are others to consider, including the
recent emergence of the Customer
Effort Score 
as an alternative to NPS and other more established
metrics such as the Commitment
Score
While the methodological issues with NPS are real and
persistent, there is a portion of the approach that can be adopted
regardless of the key metric used. Specifically, I am referring to
the identification of individual customers who have had a negative
experience (detractors, in NPS-speak) and efforts to address the
individual customer’s issue directly. In my work, it’s this closed-loop
feedback mechanism that drives the success or failure of a program. 
The direct linkage to actual customers allows the
organization to identify and address problems one customer at a
time. Extracting insights from these experiences that can then
be incorporated into the structure of the customer experience is vital,
but, perhaps more importantly, the business is fixing/improving/evolving the
customer experience as it addresses these individual issues. Delivering a
differentiated customer experience is, in many ways, a learned behavior that
requires practice to make perfect.
In the end, what really matters is how you use the
feedback you obtain about the customer experience to truly provide a
differentiated customer experience. There are many ways to inculcate
customer feedback into your organization, but successful efforts seem to share
the following characteristics:
1.       A
top-to-bottom cultural embrace of the importance of improving the customer
experience and buy-in on the measurement program and metrics used.
2.       A
coordinated effort between tactical (interaction) and strategic
(relationship) customer experience measurements.
3.       Clear
linkage between feedback results and other key company metrics and goals.
4.       A
research design that includes sufficient granularity to support tactical
decisions and line-level accountability.
5.  A
flexible measurement system and strategy that stands up to business
changes and evolving needs.
     ABOUT THE AUTHOR
       Mark Willard, Managing Director, Market
Strategies International

  

Mark has more than 20 years of experience in research. A specialist in financial services, Mark most recently held the executive vice president position at Research International, where he led the Financial Services practice and served as general manager of their East Coast offices.

Prior to Research International, Mark was the managing director and founding partner of The Willard and Shullman Group, a full-service research and consulting firm. At Willard and Shullman, Mark managed all consulting and project-related activities and was also the firm’s chief methodologist. Before Willard and Shullman, Mark was an internal consultant for Citicorp, where he was involved in the development of virtually all of its customer satisfaction measurement programs worldwide.

Mark has an undergraduate degree in psychology from Hofstra University and has completed coursework toward his Ph.D. in applied psychological research, also at Hofstra.

Join me and Mary Lee of AAA
for ‘
Revolutionizing CX: How AAA Turned Satisfied
Customers into Loyal Advocates

at TMRE 2014 in Boca Raton (2:30 p.m. on Tuesday, October 21). We’ll share how
a new measurement program and a built-in, closed-loop system revolutionized
AAA’s member experience program and empowered employees across the organization
to make immediate and lasting improvements in customer experience. 

Looking at Leaders: Thomas Feeney, Safelite AutoGlass

In anticipation of his upcoming keynote address on Driving Good Profits by Building a Customer-Centric Culture, Thomas Feeney, President & CEO, Safelite AutoGlass, sent us these insights below:

Thomas’ Story

I began at Safelite AutoGlass??, which is the nation’s largest provider of vehicle glass repair and replacement, services 25 years ago and have served in a number of roles ranging from operations to sales. When I was named president and CEO in 2008, I recognized the company had great potential for growth.

To seize the opportunity to become the only true national auto glass brand in the industry, I worked with other senior leaders to introduce a new vision for Safelite?? supported by two core principles: People First and Customer Delight.

No matter what is happening in my day, I will always take a call from an employee or a customer.

On Customer-Centric Culture

During the Total Customer Experience Leaders’ Summit, guests will learn a little bit about the journey Safelite has embarked upon to become a customer-centric journey. Are we 100% where we want to be? Not yet. Were there growing pains along the way? You bet.

Our hope is that by sharing our leadership and communications efforts to evolve our company, others will learn how to make a vision a reality.

I’ll talk about how we’re moving from good to great’ how the Net Promoter Score has been a key driver in our change, and how important PEOPLE are to the customer experience.

Inspiration

The customer experience has always been important to me. What keeps me inspired are the thousands of letters we receive each year from customers praising our technicians, our customer service representatives, and our store managers for providing a customer experience that went above and beyond.

I contact each of those technicians, CSRs, and managers and personally thank them for representing Safelite?? and our vision. Hearing their stories inspires me to keep moving in the direction we are.

The Future of Customer Experience

The use of better data analytics will help us improve the customer experience. For example, in late 2012, Safelite?? added the Customer Effort Score to our Service Recovery survey to better understand what it’s like to be in the customer shoes. Are we easy to work with or not so easy? This new question sounds simple but it help Safelite?? understand if future customer programs really add value and if they are appreciated by our customers.

We are also focused on learning more from the data customers provide to Safelite?? and are developing analytical models that tell us what makes a measurable difference in the customers experience and what drives that result. Is quality priority #1? Speed of service? Friendliness? Reliability? The more we learn from the information the customer has already provided us, the better Safelite?? and the customer experience will be.

Both of these are initiatives under Safelite’s next cultural transformation, which involves moving from our ‘People First’ principle to ‘People Powered,’ and also continuing our journey to be customer-driven.

Complimentary Webinar: Driving Best-In-Class Customer Experience: Beyond Social Media Listening

In association with EmPower Research, a Genpact company, The Institute for International Research invites you to join us for a one hour complimentary Web Seminar:

Driving Best-In-Class Customer Experience: Beyond Social Media Listening
Date: Tuesday, August 7, 2012
Time: 12:00PM – 1:00PM ET

Presenter: Sangita Joshi, Managing Partner, EmPower Research, a Genpact company

Reserve your Webinar seat now at:
https://cc.readytalk.com/r/ivporydm5oxu
Please mention your priority code: MWY0001BL

Today the rise in customer participation in Social Media is pushing marketers and researchers to listen and learn from Social Media conversations. While numerous applications of Social Media research are taking shape, understanding customer experience through the new media is gaining tremendous mind-share.

Social Media provides an excellent platform to listen to customer concerns, criticisms, and feedback, and address issues through one-to-one engagement. Social Media listening helps brand managers and marketers in not only differentiating their service quality but also aligning them with customer expectations, thus, driving greater satisfaction and better experience. In this session, you learn how Social Media can provide holistic insights on the ‘voice of consumer’.

Participants will learn:
‘ Understanding and measuring customer experience through Social Media ‘ the possibilities today
‘ Beyond listening- Tracking voice of the consumer across the relationship cycle
‘ Social engagement- The path to improving Net Promoter Score/Customer Satisfaction Index

Sangita Joshi is the Co-founder and Managing Partner of EmPower Research – a Genpact company. She has over 20 years of experience in research of which the last eight years have been at the executive level. At EmPower, Sangita leads social media research and delivery to global clients, and closely works with the innovation team to continuously evolve solutions that aid decision-making in a dynamic business environment. She regularly writes for leading industry publications and speaks on topics related to social media-led insights.

About EmPower Research
EmPower Research, a Genpact company (NYSE:G) provides integrated media and business research services. We help our clients understand stakeholder perception and needs, empowering them to service better. We use proprietary methodologies to listen and learn about conversations in the customer ecosystem, deriving real insights for active stakeholder engagement. For more information, visit http://www.empowerresearch.com