Using the Right Metrics to Measure the Customer Experience—and Predict the Future

American Management Association

November 10, 2013

American Management Association | Innovating Analytics News

With the rise of the “Super Consumer,” who can switch brands with the click of a mouse or the swipe of a finger, all while broadcasting his or her experiences to hundreds, if not thousands, of others via social media–the business landscape has changed irrevocably. To level the playing field, executives need a tool just as potent as the ones consumers wield. They need a precise and reliable technology that not only measures the customer experience but also predicts what impact their satisfaction, or lack thereof, will have on the future success of a company. Companies also need to be aware that consumers are fully immersed in multiple channels, using web, mobile, store locations, contact centers, email, and social media at will, and the experience a customer has in one channel can greatly affect the overall experience with the company as a whole.

Academic research over the past two decades shows that when measured properly, customer satisfaction is a predictor of future success at both macroeconomic and microeconomic levels. At the macroeconomic level, this means that customer satisfaction predicts consumer spending and gross domestic product (GDP). At the company level, this means that satisfaction predicts a company’s future financial performance, revenue, and even stock prices.

Achieving a true customer-centric enterprise requires metrics that track customer behavior in a way that is credible, reliable, accurate, precise, actionable and predictive. These data also need to be continuously gathered, and organizations need to act on the results. If any of these elements is missing, organizations cannot enact the appropriate customer experience improvements that will positively impact the bottom line. . .  Read the full article »