For twenty years, businesses have benefited from conducting surveys with clients and customers to try to determine levels of brand loyalty. Net Promoter Score (NPS), which brackets customers into one of three buckets—promoters, passives, or detractors—remains the best known customer loyalty metric. While it still has its use, businesses might need more. In the digital age, customer satisfaction and brand loyalty are quickly becoming a thing of the past. Now it’s all about customer experience (CX). The question now is how you make your customers feel while interacting with your company. NPS only gives surface level insights and can’t predict revenue events like churn, upsell, and price erosion. It’s time to go deeper into the data.
In the past few years, the ‘smart folks in the room’ at McKinsey, BCG, Bain, Harvard Business School, and Gartner and Forrester have drawn a straight line between CX Metrics and profitability, revenue growth, and market positioning. Many in the C-Suite are still drawn to NPS for its simplicity but evangelists of the growing CX revolution warn of the lack of insight into actual customer behavior. They routinely highlight the vast quantities of unutilized data that many companies are sitting on. When that data is deciphered, companies can be empowered with tangible effects on their bottom line that get executives to sit up and take notice.
NPS IS INTERESTING AND INFORMATIVE, BUT CAN IN SOME CASES ACTUALLY BE DANGEROUS IF SEEN AS ALL ENCOMPASSING
This is especially true in large-scale B2B relationships where a single customer/vendor contract can be worth large, make-or-break sums, and many active engagement points are involved across organizations. Knowing whether that vendor would promote your business to a friend has little bearing on contract security amid the heightened competition and price fluctuation of a quickly changing world.
Measuring client experience based on behavioral, psychographic, and fact-based data is a mouth full, but the statistics prove that it works. To accomplish this, many Fortune 500 companies have already committed to developing robust CX teams and even implementing company wide customer experience data gathering training. For many others, who may not have the human capital for extended periods of trial and error, technology can be the answer. CX measurement platforms can be used to measure, make sense of, and integrate customer data into actionable insight.
COMBINING ‘FACT’ AND ‘PERCEPTION’ BASED METRICS CAN
GREATLY INCREASE YOUR REACH
Keep in mind, however, that not all CX technology is created equally. Some companies believe that CX should be something that can be run like a survey and moved on from like NPS. A typical B2B survey event gets between 30-40% response rate if you are lucky. But more and more, companies are realizing they need to embrace a continual process of fact based (Internal metrics) data collection, in addition to survey data, to help strengthen relationship awareness and enhance customer experience at every step in a customer’s journey or lifecycle. With a combination of ‘Fact’ and ‘Perception’ based metrics, you can greatly increase the efficacy and reach of your responses, bringing that response percentage closer to 100%. Having a more complete picture makes strategic planning, company implementation, and team accountability far more successful endeavors.
Encompass-CX has been through the trial and error period so you won’t have to. For sophisticated, high-value B2B relationships, we have a proven track record as one of the few leaders in the arena when delivering insight and driving action that can directly affect your revenue.
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Request a demo of our CX application and see for yourself the benefits of measuring the customer experience can have on your revenue and retention efforts!