- November 7, 2022
- Posted by: sadmin
- Categories: Customers
Why Does Measuring CX the Right Way Matter?
NPS, CLV, CLI, CSAT, and CES and it goes on and on. The majority of us have tried everything, and frequently with such zeal that we tend to group CX professionals into one of two camps. We have to admit that we have at least briefly been a part of each of these camps. Unfortunately, while each of these indicators has a place, if we are genuinely seeking to utilise analytics to run the business and effect change, we are missing the mark.
What is the target that we must achieve?
Let’s first examine the most crucial CX measurement factors.
Why do we measure CX?
1. Continuous improvement: Having data that consistently identifies what is incorrect with our present business processes and where to go to address those problems
2. Improvement of CX performance for individual customers: Evidence that we are improving our ability to serve particular customers based on their views and goals.
3. Trending over time: Evaluating our progress from one period to the next in terms of improvement.
4. Benchmarking: To understand where we stand and, when we are a leader, to defend our position against rivals, we compare our CX strategy with that of industry or process leaders.
5. Customer performance: Evaluating if our clients are succeeding in achieving their goals and how we have (or have not) assisted in that.
6. Return on CX investment: Are we receiving the financial benefits we had promised from implementing programmes and building particular capabilities?
7. Alignment of our CX strategy to company success: Whether we are helping the firm achieve its strategic goals for revenue, profitability, market share, social impact, or other areas.
One or more of these goals may be helped by each of the measures that are most widely employed now, but none will fill the need. For instance, the Net Promoter Score is a perfectly acceptable method for comparing firms or evaluating overall advancements through time, but we should challenge anyone to apply it to the improvement of particular trips, procedures, or business goals. Furthermore, NPS cannot possibly support our argument that CX directly correlates with business profitability. Or how about calculating the CX programmes’ return on investment?
Evolving way of measurement
Why not consider methods to more accurately gauge the success of our customer strategy rather than relying on the traditional CX measures? Why not adopt a more tactical, cause-and-effect-focused approach rather than abstractions that assess broadly? To accomplish this, it is necessary to first investigate the critical factors, or capabilities, that fuel a successful CX strategy.
• Customer Feedback, Data & Analytics: The gathering, examination, interpretation, and reporting of customer feedback, as well as the management of consumer data across the company. Take into account initiatives like customer advisory boards, analytics, storytelling, consumer segmentation, and voice of the customer programmes.
• Customer Engagement: Using programmes that emphasise account management, awareness-to-buy engagement, post-purchase engagement, executive sponsorship, issue resolution, user experience, and proactive “white glove” customer care to communicate and collaborate with customers.
• Customer Success: Capabilities centred on efficient use of goods or services, platforms and customer communities for exchanging best practises, product uptake, and value generation.
• Customer Marketing: Creating customer content, account-based marketing, customer references, and reward/referral programmes, as well as connected marketing initiatives.
• Customer-Centered Transformation: Coordinating business transformation and change management initiatives while keeping the needs and results of the client in mind.
Various combinations of each of these programmes and capabilities are used to bring CX goals to life. The specific emphasis changes over time depending on the programme maturity, the status of the business, the competitive landscape, and overarching company objectives.
We first concentrated on feedback, data, and engagement initiatives while I was Oracle’s chief customer officer. Later, as those capabilities had developed more, we focused more on marketing and customer success. Finally, we discussed how to weaponize CX for competitive advantage focused on CX and transformation.
Developing and utilising these capabilities to assist you and your clients in achieving desired outcomes is the overarching goal of CX. What could be a more effective way to assess success than by evaluating the potency of each capability? For instance, when it comes to improving customer engagement, account management programmes do so by enhancing both the customer experience and total consumer involvement. The same is true of brand advocacy and how it affects the satisfaction and experience of customers.