Innovating Analytics: A Book Review by Bob Morris

Blogging on Business

December 4, 2013 | by Bob Morris

Innovating Analytics Review | Blogging on Business

How and why the best innovations in customer experience analytics can create a decisive competitive advantage:

As Larry Freed explains, “I introduce a powerful new metric we developed at ForeSee called Word-of-Mouth Index (WoMI), which incorporates and builds on a widespread metric of customer loyalty and customer satisfaction called Net Promoter Score (NPS). [Introduced by Fred Reichheld,] NPS has many strengths but just as many weaknesses and has outlived its usefulness as a metric. This book is also about the need for a comprehensive customer experience measurement ecosystem in addition to WoMI to accurately assess and improve the other elements of customer experience.”

My own opinion is that many (most?) smaller businesses do not use any metric – much less a system – to measure customer loyalty and customer satisfaction. I also think that, for many of those companies, NTS will be sufficient to their needs. That said, WoMI does seem to offer more, as Freed explains within his narrative, but as noted, he also recommends “a comprehensive customer experience measurement ecosystem in addition to WoMI” and devotes an entire chapter, Chapter 7, to explaining what one would be and do. . .  Read the full article »