“You can’t manage it if you don’t measure it,” has been a business cliché for decades. It’s not a sentiment everyone agrees with, as not everything worthwhile can be measured; but measurements can provide useful insights to trends and behavior patterns. So how does measurement (or lack of it) relate to the redefined customer journey I’ve been blogging about over the last few months?
The final level examines the means to measure and manage the return on the investment in a continuous customer engagement strategy by linking various key performance indicator (KPI) metrics to different stages of the engagement.
Typical measurements used in the various stages of the customer journey include KPIs such as:
Net Promoter Score: NPS is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale
Revenue: The income that a business has from its normal business activities, usually from the sale of goods and services to customers
Total Cost of Ownership: TCO is usually a summation of the total cost of acquisition and operating costs plus any costs related to replacement or upgrades to a product at the end of its useful life
Return Rate: Usually expressed as a percentage of the number of products sold that are returned
Call Resolution Time: Within a support group, this measures the elapsed time between a customer reporting a problem and the issue being reported as being resolved. Most support groups have target resolution times to meet, and the duration of those target may vary depending on the customer’s status
Churn: Measures the proportion of contractual customers or subscribers who leave a supplier during a given time period. It is a possible indicator of customer dissatisfaction or issues with the overall customer experience
Likes / Impressions: Usually a collection of Web and Social Media metrics such as page views, followers, and the number of posts that receive comments, likes, or are shared online. All of which contribute to an overall Brand Equity, or a measure of how the overall brand, its promise, products, and experience are perceived
This is not an exhaustive list above, you may be using other ways to measure and manage customer interactions. Yet whatever measurements are used they tend to be the indicator of success (or failure) for individual operational departments or groups, and rarely, if ever, looked at in a holistic way to provide and overall measurement of customer satisfaction. It’s possible that you could be scoring highly in specific categories, yet still deliver a poor overall customer experience due to a disconnected journey.
By looking at customer related metrics as part of an overall ecosystem rather than separate KPIs it allows you to develop a clearer picture of a customer’s overall journey and their lifecycle value.