CX AUDIT AND METRICS

CX Audit is one of the seven building blocks of CXNow – The Customer Experience Transformation Program at Virtuos. CX Audit is built on PLUS — Pace Layered Umbrella Strategy Foundation.

Measuring the Customer Experience Successfully Requires Three Conditions to Be Met.

Make managing down as important as managing up

Be inclusive of metrics from all parts of the organization

Look at the emotional, not just the rational

CX Metrics

What’s Commonly Measured for CX

Customer Satisfaction (C-SAT) is still the no.1 most common metric — currently, 57% of surveyed companies (source: Gartner as in the figure) used customer satisfaction scores to measure customer experience. When it comes to Net Promoter Score (NPS) — most often C-Level executives are measured for CX performance is used by 31% of large companies of size $3B+ annual revenue.

About 23% of companies mostly mid to small-sized companies (Under $500M revenue) track metrics for customer repeat orders. About 20% of the companies — More likely to be large companies track CX metrics for brand reputation and about 21% of them for Customer Life-Time Value (CLTV).

Managing Up

The Pros and Cons of Net Promoter Score

Net Promoter Score = "Percentage of customers who would recommend a company (promoters) minus the percentage that would urge friends to stay away (detractors)"

Challenges:
Achieving consistency - Consistency
Suitability at touchpoints - Causation
Closing the loop - Anonymity
Getting buy-in - Integrity
No financial link proven - ROI

Strengths:
Higher response rates - Simplicity
Executive understanding - Frequency
Benchmark-able - Comparable
15- year old track record - History
Captures relationship - Actionable

NPS is invented by Satmetrix (now part of NICE). Virtuos consultants are certified on NPS.

CX Audit of your brand is very critical. Initiate CX Primer for free with our consultants.

Innovation Beyond NPS

It’s increasingly seen “NPS” is most talked about CX metric, but in reality, there are many other measures such as CES, WoMI, BAI to audit your customer experience.

CES

Customer Effort Score (CES) from CEB (Now part of Gartner) is measured by asking a single question scored on a scale from 1 (very low effort) to 5 (very high effort):

– "How much effort did you personally have to put forth to handle your request?"

CEB claim CES is a better predictor of loyalty than CSAT or NPS.

WoMI

Word of Mouth Index (WoMI) from ForeSee is measured by asking both about willingness to recommend and a second question:

– "How likely are you to discourage others from doing business with this company?"

WoMI research claims that on average, NPS overstates detractors for the most prominent brands by 780%.

BAI

Brand Advocacy Index (BAI) from Boston Consulting Group is measured using a weighted calculation of spontaneous and nonspontaneous advocates, neutrals, nonspontaneous and spontaneous critics of a brand.

BCG claims there is a strong positive correlation between BAI and top-line growth — double that of other measures of advocacy.

Good CX

How the Customer Measures You: Facets of a Good Customer Experience (CX)

Bad CX

How the Customer Measures You: Facets of a Bad Customer Experience (CX)

RECOMMENDATIONS

Avoid focusing only on one top-level customer experience metric.

Create a hierarchy of customer experience metrics in a dashboard.

Work with the strengths of NPS and try to minimize the downsides;

Don't ignore the most neglected categories: Quality and employee engagement.

Watch metrics across the whole organization, not just those tracked in one or two departments.

Beware of only looking at rational metrics — also keep an eye on how customer emotions are being measured.

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