When we focus on product and service innovation, what will
customers get from you? If you sell a product, what buyer feels from finding
the product, using it, making it broken, fixing it and then buy another product?
If you provide services, how will customers feel from getting the service
information, trying, renewal and buy from others? As a seller, what kind of
customers you want to sell? One time customer or loyal customer?
We are in the customer-centric age, how we understand our
customer is the major topic of business objective. Even in the Balance Score
Card, one of the four perspectives is customer. The journey of customer will
imply the company’s operation and revenue. How we measure our customers’
experience? Following are the common metrics:
CSAT:
Customer Satisfaction Scores, it’s a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals.[1]
NPS: Net
Promoter Scores, it’s a management tool that can be used to gauge the
loyalty of a firm's customer relationships. It serves as an alternative to
traditional customer satisfaction research and claims to be correlated with
revenue growth. NPS is calculated by subtracting the percentage of customers
who are Detractors from the percentage of customers who are Promoters. [2]
CES:
Customer Effort Score, it’s derived from one question that you'll add to your
post-transactional surveys to assess the degree of effort that the customer had
to exert in order to get an issue resolved, a request fulfilled, a product purchased/returned,
or a question answered.[3]
How these metrics apply in the
business and what’s difference of them? Can these metrics really represent all
customers? The HBR (Harvard Business
Review) evaluated the predictive power of these three metrics at 2010.[4]
The research focused on the customer loyalty and verified the customers’
intention to keep doing business with company, spending more money, or spread
positive (and not negative) word of mouth. CSAT is poor for prediction of
customer behavior and only shows result of campaigns or activities. NPS is
better for company level of branding when the positive word of mouth more than
before. HBR shows CES is better to predict customer behavior for repurchasing
and increasing spending.
Actually, metrics are still the reference
and the best customer experience should from thinking as a customer. What you
will feel when using the product or service?
Putting yourself into customer’s shoes and understand their difficulty
in the same scenario. Every metrics here are still too lag. Only company
culture will prevent the bad customer experience and make everyone happy. Happy
employees will bring more customers, better brand and sustainable enterprise.
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