Unmasking the Problem with Net Scores and the NPS Claims

May 14, 2012 By 1 Comment
rob_markey_twitter_net_scores

I wrote about net scores last week and presented evidence that showed net scores are ambiguous and unnecessary.  Net scores are created by taking the difference between the percent of "positive" scores and the percent of "negative" scores. Net scores were made popular by Fred Reichheld and Satmetrix in their work on customer loyalty measurement. Their Net Promoter Score is a difference score between the percent of "promoters" (ratings of 9 or 10) and percent of "detractors" (ratings of 0 thru … [Read more...]

Filed Under: Beyond the Ultimate Question, Customer Experience Management, Customer Loyalty, Customer Metrics, Net Promoter Score, NPS Tagged With: ,

The Best Likelihood to Recommend Metric: Mean Score or Net Promoter Score?

May 7, 2012 By 1 Comment
Table 1. Correlations among different summary metrics of the same question (likelihood to recommend).

A successful customer experience management (CEM) program requires the collection, synthesis, analysis and dissemination of customer metrics.  Customer metrics are numerical scores or indices that summarize customer feedback results for a given customer group or segment. Customer metrics are typically calculated using customer ratings of survey questions. I recently wrote about how you can evaluate the quality of your customer metrics and listed four questions you need to ask, … [Read more...]

Filed Under: Customer Experience Management, Customer Loyalty, Customer Metrics, Customer Surveys, Net Promoter Score, NPS Tagged With: , ,

How Oracle Uses Big Data to Improve the Customer Experience

April 30, 2012 By 1 Comment
Figure 2. Relationship between time to resolve SR and customer satisfaction with SR

Customer experience management (CEM) programs are no stranger to the use of data. CEM professionals use data to gain insight about their customers to help improve the customer experience and optimize customer loyalty. Not surprisingly, CEM programs typically rely on customer feedback as their main data source (e.g., social media, customer emails, tech support notes, formal customer surveys). Customer feedback data, however, are only one type of business data that are used to improve business … [Read more...]

Filed Under: Big Data, Customer Experience Management, Customer Loyalty Tagged With: , , ,

Three Upcoming Talks on Big Data and Customer Experience Management

April 23, 2012 By 1 Comment
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I have recently written on Big Data's role in Customer Experience Management (CEM) and how companies can extract great insight from their business data when different types of business data are integrated with customer feedback data. I have been invited to share my thoughts on Big Data and Customer Experience Management at three upcoming conferences in May and June (see conference details below). Big Data and CEM Big Data refers to the idea that companies can extract value from collecting, … [Read more...]

Filed Under: Big Data, Customer Experience Management, Customer Loyalty, Customer Metrics Tagged With: , , ,

Big Data has Big Implications for Customer Experience Management

April 16, 2012 By 5 Comments
TCELab: Big Data. Bright Ideas. Loyal Customers

Unless you have been living under a rock, you know that Big Data is the latest buzz word in the world of business. The concept of Big Data a is broad one and I consider it an amalgamation of different areas that help us try to get a handle on, insight from and use out of data. Pat Gelsinger, President and COO of EMC, in an article by the The Wall Street Journal said that Big Data refers to the idea that companies can extract value from collecting, processing and analyzing vast quantities of … [Read more...]

Filed Under: Big Data, Customer Experience Management, customer feedback programs, Customer Loyalty, Predictive Modeling Tagged With: , ,

Using Driver Analysis to Improve Employee Loyalty

April 9, 2012 By Leave a Comment
Figure 2. Employee Loyalty Driver Chart

Researchers have shown a consistent relationship between employee attitudes and customer attitudes. Specifically, they have found that satisfied/loyal employees, compared to dissatisfied/disloyal employees, have more satisfied customers. Examining different bank branches, Schnieder & Bowen (1985) found that branches with satisfied employees have customers who are more satisfied with service and are less likely to churn compared to branches with dissatisfied employees. Companies must consider … [Read more...]

Filed Under: Customer Experience Management, Employee Loyalty, Employee Satisfaction, Employee Surveys Tagged With: , ,

Getting the Most Value from your Employee Survey

April 2, 2012 By 1 Comment
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Companies need to ensure they are providing their employees with the tools, information and support they need to be successful at their jobs. One way companies gauge how well they meet their employees' needs is through an annual employee survey. Employee surveys can provide companies useful insight about what makes their employees want to work there. For my next two posts, I will talk about the types of questions to include in an employee survey and demonstrate how those employee survey data … [Read more...]

Filed Under: Customer Experience Management, Employee Loyalty, Employee Satisfaction, Employee Surveys Tagged With: , ,

Visualizing Product Quality and Customer Service Quality

March 26, 2012 By Leave a Comment
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I recently wrote about (and visually illustrated) the different types of customer loyalty in customer experience management programs. In that post, I showed how factor analysis can be used to help us understand the measurement and meaning of customer loyalty. In this week's post, I use factor analysis to illustrate the measurement of two primary touch points about the customer experience: 1) Product and 2) Customer Service. Similar to the prior post, I adopt a visual approach in presenting … [Read more...]

Filed Under: Big Data, Customer Experience Management, Customer Surveys, Relationship Surveys Tagged With: , , ,

Is Service Quality More Important than Product Quality?

March 19, 2012 By Leave a Comment
Figure 1. Descriptive Statistics and Correlations among Variables

This past weekend, Apple released the iPad 3. My daughter and I visited the Apple store in downtown San Francisco to take a peek at their new device. Of course, the store was packed full of Apple fans, each trying out the new iPad. This particular in-store experience got me thinking about the role of product vs. customer service/tech support in driving customer loyalty to a brand or company. Product vs. Tech Support There has been much talk about how companies need to focus on customer … [Read more...]

Filed Under: Advocacy Loyalty, Customer Experience Management Tagged With: , , ,

4 Ways to Optimize Your Customer Survey [INFOGRAPHIC]

March 12, 2012 By 3 Comments
4 Ways to Optimize Your Customer Survey

Companies, in support of their customer experience management (CEM) programs, rely heavily on the use of customer surveys as a means of collecting customer feedback. An optimal customer survey maximizes the value of the survey to both the businesses who use them and their customers who take them. Specifically, businesses need customer surveys that provide reliable, valid and useful information to help run the business more effectively. Customers need surveys that let them give quick, yet … [Read more...]

Filed Under: Best Practices, Customer Experience Management, Customer Loyalty, Customer Surveys Tagged With: , ,
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