Welcome back to our three-part series on Data-Driven Customer Experience (CX) Transformation. Part 1 discussed how valuable a master data management (MDM) solution can be in identifying your customers. Part 2 covered customer segmentation and how important it is to a comprehensive customer experience program.
In this, the final post of our series, we’ll shift the focus to customer experience transformation analytics, which refers to capturing data about customer interactions and transforming it into a consumable view of CX initiative effectiveness. In other words, we’re talking about measuring each of your strategies for improving the customer experience to see what’s actually moving the needle.
If your organization is like most, you’ve probably defined some big picture success criteria for your CX program. But translating those big picture goals into measurable, quantifiable KPIs can be very challenging. With large volumes of complex data stored in disparate systems across many different parts of the organization, some executives may be left wondering if it’s even worth all the effort to quantify the results of their CX initiatives.
As McKinsey noted in a recent article, “Without a quantified link to value and a sound business case, such [CX] efforts often can’t show early gains, build momentum among functional executives, and earn a seat at the strategy table. They stall before they ever really get going.”
At Sense Corp, we’re passionate about helping our clients become insight-driven organizations (IDOs). In the customer experience context, that means digging into your data and helping you gain visibility into the true effectiveness of every one of your CX initiatives. Armed with the knowledge of what’s working and what’s not, you’ll be able to adjust and optimize your CX program to ensure your customers are happy and your organization is getting the most bang for its buck.
Three Key Strategies for measuring Customer Experience Transformation
In our work helping clients transform their customer experience, we’ve identified these key strategies for measuring customer experience transformation:
1. Measure Things Your Customers Care About – Customer experience (CX) and customer service (CS) are not equal. And yet many organizations fall into the trap of measuring their customer experience improvements using customer service metrics (Average Handle Time, Schedule Adherence, etc.). As you’re designing an analytics solution to measure your CX program, focus on metrics that matter to your customers, like First Call Resolution, Average Speed to Answer, and On-Time Appointments.
Rule of thumb: If you’d have a hard time explaining a metric to a customer, it’s probably not a good CX metric.
2. Focus on ROI – If you’re investing in multiple CX strategies (as most organizations are), you’ll want to tie every customer interaction back to the investment or investments that made that interaction good or bad. If you’ve spent a million dollars on the first phase of a new mobile app and your customers are getting frustrated with a less-than-intuitive interface, you should know that so you can adjust your design approach in the second sprint.
On the other hand, if one of your regions is trying out a low-cost approach to white-glove service and it’s materially improving customer satisfaction, you should know that too so you can invest more heavily in that high-return, winning strategy.
3. Segment Your Metrics Just Like You Segmented Your Customers – Many organizations are used to looking at sales and finance numbers in aggregate for the entire enterprise. It can be tempting to measure CX in aggregate as well.
Net Promoter Score (NPS) is a great metric for tracking your CX progress, but looking at something like NPS for the entire customer base and hoping it will trend up a fraction of a point won’t do you much good. Instead, try looking at NPS for a given customer segment. This is a great use case for applying Customer Type Segmentation to slice and dice your CX metrics.
Customers with different service or product packages, tenures, and payment plans should all be measured differently because one customer type may care more about a certain KPI than others. Plus, it will be much easier to see where you’re succeeding or failing at a micro level and adjust your tactics accordingly. If you can move the needle within each segment, your overall numbers will trend up as well.
Happy Customers. Empowered Employees. Healthy Profits.
Whether your customer experience program is big or small, measuring your CX investments is a non-negotiable. Understanding which CX strategies are working and which ones aren’t will allow you to continuously improve your approach and deliver results that matter.