I have been working on something like this – what if the metrics are functionally grouped but instead are aligned along the customer journey from awareness to advocacy?  (For example, Awareness, Knowledge, Consideration, Buy, Satisfaction, Loyalty, Advocacy)

So awareness might contain your metrics on brand and social media and PR.  The buying phase would be where your sales metrics go (sales, win/loss, etc…)  Satisfaction might metrics related to customer service.  Loyalty could be retention, Net Promoter Score or repurchase intention measures.

I’m really interested in learning how you think dashboards can be more customer centric.  What examples can you share?  Where have you seen best in class ideas?

I see customer retention as a key metric and focus for a customer experience group.  I vote for leaving churn behind as a measure and developing a measure that helps focus efforts on improving the behavior we want – retention. 

I think it becomes a more interesting and actionable discussion, when you have a metric (or metrics) that focus on customer retention.  There are also different views of retention, for example –  

• # of accounts retained
• # of products/services within an account retained
• retained value

I don’t know but a “focus on reducing churn” sounds less customer focused than a “focus on increasing customer value”.  Some have said it is more about semantics (which could be right) but even so, semantics matter.  I’ve heard many versions of this phrase (Tom Peters to  Deming) but essentially you do get what you measure or at least that what’s people will focus on, so I think getting the focus on customer retention does matter, in the end.  What do you think?  And which one does your company measure?

Brand – Product – Service

At the brand level, loyalty is more about attachment to a name and what that name means to me (good or bad).  It’s also about a promise – the brand makes promises (implied or intended or unintentional altogether).  Delivery of that promise is judged in the mind of the customer.  Asking loyalty questions at the brand are more about the company brand value and the company brand promise.  And that is where the improvements will need to play out.

Product is very specific.  Asking customer loyalty about a product will tell me a story.  That story is the one they tell other people in their circle (however large or small).  This can be a great tool for better developing a customer focused view of our products and what is most critical from a feature or functionality improvement perspective.  I think it is also important to remember that this won’t be able to give you unknown, unmet needs – that is a whole other discussion.

Service – if the customer is paying for service in addition to the product, then asking for loyalty on this front can be a great tool.  Particularly because it is possible that the buying cycle for the product is longer than the buying cycle for service and its accompanying touchpoints are more frequent.  The down side is that if the service is included somehow or not visible as a cost the customer pays for directly, then asking loyalty at this level is often hard.  Might be better to stick to customer satisfaction for this critical touchpoint.

Those are my thoughts on the level of the question.  What do you think?  How have you seen this applied?

Let’s start with Customer Satisfaction vs. Customer Loyalty (including NPS) – what are you going to use it for? 

• Customer satisfaction is all about us – the company/product/service/employees – how did we do? 
• Customer loyalty is all about your customers and their behavior – what stories will they tell about you?  What will they say when someone asks them what they think about a company/product/service?

Picking one or the other (or using both) starts with knowing how you will use the data once you get it. 

• Customer satisfaction – great for repeatable events (like customer support or field service) that need a customer based metric on the scorecard and to drive repeatable excellence in the customer experience. 
• Customer loyalty – great for determining what stories customer’s are telling about you.  Good at showing (or even predicting) customer lifetime value.  Excellent source of customer feedback for product or brand improvement suggestions.

Once you’ve decided how you want customer feedback to apply to your business, it becomes easier to answer questions like “how often do I ask?” and “what method do I use to get the customer’s feedback?” or even “at what level do I ask the question (brand/product/service)?”  **We’ll get to these questions in my next post in this series.**

I’m big on actionable information.  I like to know what business questions customer feedback will answer or what business problems customer feedback will resolve.  It helps me find the right focus for applying customer metrics.  My program team is service oriented – we are here to help our business partners across the company and improve the customer experience at the same time.  This is important because it is feedback from the customers and my business partners that help fuel how I design a program.

These are my thoughts.  What do you think?  Share your experience with me.

One subject came up as a question after a session and I couldn’t help chiming in – executive compensation on your customer KPI, most notably NPS http://www.netpromoter.com was mentioned, although others arose as well.   to be clear up front, I’m all for incenting the right behavior and having incentives that are rooted in improving the customer experience are great. 

What I’ve experienced and heard about from many in this field is that once you incent based on improving the customer KPI, you will often find an intense focus on how the number is captured, calculated and surrounded by debate on the score.  This results in a frustrating amount time spent justifying the number itself, rather than improving the customer experience.

So how do you get out of that hole?

The easiest way I’ve found is to change the focus of attention away from the number (whichever one you use) and instead focus on incenting for improvement initiatives that are based in customer feedback.  By doing this, you comfortably fit full control of the efforts and results into the hands of the executive being incented (which also encourages engagement) and you circumvent all of the arguments around the number. 

Do you have a customer based KPI?  Is there incentives for it?  I want to hear how you handle this challenge.

Measuring retention instead of churn shouldn’t be anymore difficult, as metrics go.  It should be designed to fit how you sell in your marketplace and around customer behavior.  I like how retention metrics focus on the positive and language turns into more customer focused intentions rather than preventative measures.  I like how retention can be proactive (“What can we do to be even better? How would you like to see us improve?”) and gets you out of being strictly reactive (“Oh, you want to leave?  Can we do something to keep you now?”)  Being focused on keeping the customer once they have decided to leave feels like “too little, too late”.  At that point, I am often more insulted than interested in taking any offer to stay.  Why wasn’t I valuable enough to you for this discounted offer before I decided to leave you?

So I vote that it’s time to leave behind the churn metrics and move forward into retention metrics.  Let’s show our customers we care about them now, while they are still with us on that customer experience ride.  What do you say?