Stage 2 of Managing Forward: A Template from my book, Managing Forward, identifies the characteristics of an intelligent measurement technology and the results you can achieve by harnessing the power of customer satisfaction analytics.
If you didn’t read Stage 1 on identifying objectives and determining the role of each channel within the organization yet, check it out here.
Stage Two: Measure Intelligently
Once again I have to start by saying: you cannot manage what you do not measure. The core activity in this stage is to establish and implement tools and methodologies that generate credible, reliable, accurate, precise, predictive, and actionable metrics. The results create a benchmark for evaluating the results of changes and improvements and for analyzing short–and long–term trends.
Your measurement methodology must incorporate behavioral (traditional), feedback, and customer satisfaction metrics in order to see the whole picture and to deliver predictive and actionable findings. Otherwise key intelligence could be overlooked or disregarded.
We recently worked with an established direct brand that enjoyed web analytic results well above industry averages. In addition, retail analysts consistently rated the company’s website as the standard against which other sites should be compared. Even so, the company was concerned since their conversion rates consistently fell well below industry averages.
Since the company’s main objective was to use their website to increase sales, solid web analytics results and critical praise were gratifying but largely irrelevant.
By taking the measurement process beyond behavioral data and incorporating customer satisfaction data, we could measure the impact of the website across offline channels. Those results were higher than the company expected and accounted for some of the low conversion rate. At the same time, we also determined concrete steps the company could take to improve satisfaction and true conversion rates in their online channel while improving offline sales as well.
In other words, an effective measurement system has two layers:
1. Customer Experience Level. We must measure every experience customers have, at every touch point and transaction. By measuring these experiences through the lens of customer satisfaction we not only measure the success of each experience but also answer the Big Three Questions that every company should be asking: How are we doing? Where should we focus our improvement efforts? Why should we improve? The answers to these questions provide the diagnostic capability to manage the customer’s experience forward.
2. Customer Relationship Level. In addition to measuring each experience, we must measure the total relationship with the customer. Understanding how each experience impacts the total relationship provides the measurement intelligence to manage the business forward. A complete and properly designed measurement system provides the intelligence we need to meet customer needs and meet and exceed customer expectations.
Next time, in Stage 3, I’ll talk a little bit about how to: Set Priorities Based on Customer Satisfaction ROI. Also, if you missed it, read Stage 1 here.
To purchase a copy of Managing Forward: How to Move from Measuring the Past to Managing the Future, click here. Visit www.foresee.com to learn more about our company. If you are already a client or partner just let us know and we will send you a copy of the book.