Customer Experience

How To Measure Customer Experience
How to Measure
Customer Experience
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How To Measure Customer Experience
How To Measure
Customer Experience
In today’s experience-driven world, it is well known that highachieving companies must deliver excellent customer experiences in
order to remain competitive. But how do managers know where
they stand, and where to go next?
As Peter Drucker famously said, “What gets measured gets managed,” and it
is for precisely this reason that customer experience innovation efforts must
include the identification, measurement, and digestion of key metrics.
After years of work in the customer experience realm, Motiv has developed the
following framework for identifying metrics that you can use to quantifiably
assess the current state of your customer experience, as well as to track the
success of your improvement efforts.
Foundational Metrics
Before embarking on a customer experience improvement effort, your
organization should first identify and begin tracking foundational metrics at each
touchpoint along your customers’ journey.
Overarching CX Metric
Touchpoints
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Foundational
Metrics
(O/F/P)
Solution
Metrics
(O/F/P)
© Motiv Strategies
Motiv’s metrics framework structures your organization’s measures across the customer journey.
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How To Measure Customer Experience
These foundational metrics measure attributes of a touchpoint,
and should reflect an organization’s goals and priorities.
Imagine a budget airline that has identified three touchpoints of
interest in their in-terminal process: check-in, baggage drop, and
boarding. Based on customer research and a vision derived from
brand values, the customer experience innovation team has
identified foundational metrics at each of these
touchpoints:These metrics measure different aspects of each
touchpoint important to the customer’s experience, to the
airline’s vision and goals, or both.
Examples of potential foundational metrics might include the percentage of registered users who engage your web service at least
once a week, the number of customers who find your email communications ‘very effective’, or the amount of sales your company
achieves through cold-calling.
Solution Metrics
As you develop and implement solutions to your customer
experience shortcomings, you should consider ways to track the
success of each. By measuring which initiatives are successful,
you will better understand the causes for any changes in the
foundational metrics, and will be able to end unsuccessful
initiatives sooner rather than later.
The methods you identify will become your solution metrics:
specific measurements that can be used to understand whether
the initiatives you are pursuing to improve the customer
experience are having the desired impact.
These metrics will complement your foundational metrics by
giving you insight into the causes of change in foundational
metrics: a rise in both a foundational metric and a related solution
metric might indicate that an initiative is not only meeting
standards of success, but also creating added value for your
customers.
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How To Measure Customer Experience
Let’s revisit our budget airline example. Having conducted
creative ideation sessions with a multidisciplinary team, the
customer experience innovation team has identified initiatives to
solve problems identified in customer research. Two of those are
a premium boarding system and an automated bag check
process.
As you can see, the team developed metrics specific to each
solution, tracking the success of each one independently. These
metrics should reinforce the mission statement of each initiative,
as well as the customer experience vision.
Note that a particular solution’s metrics are often restricted to one
touchpoint, like the airline’s premium boarding initiative, but can
sometimes reach across the boundaries between touchpoint, like
the automated bag check initiative, which specifically bridges the
gap between check-in and baggage drop.
Further categorizing these foundational and solution metrics as
operational, financial, or perceptual allows you to understand the
nature of your customer experience drivers throughout the
process.
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How To Measure Customer Experience
For example, customer engagement is often an effective
operational metric and excitement is a perceptual metric,
whereas sales and cost figures are financial metrics.
Our airline example highlights metrics from each of these three
categories, as shown above.
Standardized Customer Loyalty Metric
Lastly, an overarching customer loyalty metric allows your
organization to take the pulse of the entire customer experience
you deliver. By tracking a widely-accepted measurement such as
CxPi or Net Promoter Score (NPS), you can gain a high-level
overview of customers’ perspectives of the products and
services you deliver to them.
Authors
Jeneanne Rae
President and CEO
[email protected]
Ian Campbell
It is becoming clearer that the emergence of the experience
economy is a reality, and a compelling customer experience will
soon be ‘table stakes’ in the marketplace, if it isn’t already. By
measuring the current state of your customer experience as well
as the effectiveness of the improvement initiatives you
implement, your organization will be able to compete in the
ever-changing experience economy.
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Director
[email protected]
Nathan Ritter
Consultant
[email protected]
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combine business analysis with design strategy tools to help our clients
discover new opportunity spaces, develop new services and better
customer experiences, and drive the change management required to
enable breakthrough innovation.
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