Draft – Taking Action with NPS Data

Draft – Taking Action with NPS Data

NPS BASICS AND BEYOND
Draft – Taking Action with NPS Data
JOURNEY MAPPING

What’s So Special About
the Net Promoter Score?

key takeaway

Making customer feedback a two-way street delivers a multitude of benefits to you and a better experience for your customers. And how your company communicates internally about NPS is critical too. 

Best Practice

NPS is the brand measure of the total customer journey, the sum of all partsencompassing both the rational and emotional aspects of loyalty over the life cycle of the relationship. Yet we often say that your actual score may not matter. It is important to keep in mind that NPS is a relative, not absolute, performance measure.  What matters more than your actual score is the score relative to your company and your industry. 

 

NPS is based on responses to the Likelihood to Recommend question, “How likely is it that you would recommend <brand> to a <friend /family member/colleague>?” 

 

The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. While Passives are not directly mentioned, they do play a role in the calculation as the more Passives there are, the percentage of Promoters and Detractors is impacted. Thus, the Passive categorization is extremely valuable in setting customer strategy and focusing action. 

      

At its core NPS is about separating customers into 3 categories that behave differently and deliver different economic outcomes. Research going back to the origins of NPS continues to validate the distinct behaviors of these 3 designations. The fact that these categories are directionally correct and are easy to understand drives employees at all level of the organization to take appropriate action and monitor shifts in status across the 3 categories, ultimately improving NPS.   

 

Promoters (scores of 9 -10) These are your most loyal customers.  They are the most profitable, spending more and staying longer. Their cost to serve is low.  The positive word of mouth spread by Promoters reduces acquisition costs and drives growth.  They are open to partnering with you on innovation.  

 

Passives (scores of 7-8) The risk represented by Passives is often overlooked. While not at immediate risk of churn, their ambivalent connection to your brand makes then highly susceptible to offers by your competition.  They are very price conscious impacting profitability. Passives are unlikely to spread positive word of mouth so provide little value in acquisition efforts.   

 

Detractors (scores of 0-6) These are your highest risk customers, not only in terms of potential to churn but potential to cause damage to the brand.  Cost to serve is high.  Negative word of mouth impacts acquisition efforts. 

go beyond taking action with nps data

A strong program based on these fundamental NPS best practices will have robust follow up and clear plans for acting on insights, but your follow up and actions are only as good as the data set you have. Plan now to take your program to the next level by expanding your data set so that you have reliable insight on the complete customer base. For that, you’ll need predictive scoring, or Spectrum NPS. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

Draft – Taking Action with NPS Data

The Optimal Customer Journey Is Profitable, Too

INSIGHTS
The Optimal Customer Journey Is Profitable, Too
JOURNAL

The Optimal Customer Journey Is Profitable, Too

Microsoft’s farewell to its stores may be a good CX move.

Friday is typically the day to flush out bad corporate news, and right now any news that doesn’t specifically include the words “pandemic”, “surge”, or “vaccine” is hardly going to make headlines anyway. So last Friday was a great day to put an end to Microsoft Stores.

And by “Stores” I don’t mean some desktop application, like a clever version of Microsoft Bob, which would have been something completely different than Microsoft Bob, the widely mocked user interface of the mid ‘90s. No, this is bricks and mortar, gone forever. Pretty soon we will be asking ourselves: Remember everything we loved about Microsoft retail? No? Me neither.

Nevertheless, the shuttering of Microsoft Stores should remind us that we are gearing up for the great distribution fight of the next 20 years.

Except Microsoft today isn’t the butt of jokes (more’s the pity) that it was a decade ago. Then, I would have suggested that Microsoft should board up its physical windows like a huge blue screen of death. Now that would be funny, but Microsoft isn’t that company anymore. It’s a powerhouse. This is an exceptionally well-run business. Its transition to the cloud has put it in a competitive position with Amazon (AWS) and, while not quite as feared as it was in the late 90’s, Microsoft is perhaps more respected. More importantly for us, it’s not delivering the customer experience of the 90’s either.

It’s tempting to draw comparisons with Apple, and inevitably there will be those who point out that Apple built one of the highest turnover-per-square-foot businesses in the history of retail. That the “genius bar” – physical technical support – was, in fact, genius. No other comparable company came close to the economics, or experience of Apple in retail and in some ways it still mystifies. Technology products cry out for online sales, since after all, they are “technology” products, not fashion. Or perhaps that’s the point about Apple, they transcend the technology with their brand.

Nevertheless, the shuttering of Microsoft Stores should remind us that we are gearing up for the great distribution fight of the next 20 years. In one corner, the digital natives, sweeping everything in their path in a click-efficient, logistical excellence vision of humans in their home cocoon being ferried everything from cookware to AIrecommended tank tops. On the other, the ancients: stores with great heritage and traditions of service like Macy’s and Nordstrom. Even the names evoke a different, pre-internet era. Shopping experiences we will tell wide-eyed grandchildren about: Some “old fashioned gentleman” in suit helping fold your sweater and put it in a bag! Did you live at Downton Abbey?

But the future is more nuanced. Barring society being permanently banned from social gathering, customers will seek and be served by complex combinations of service models; telephone, online, offshore/onshore and yes, retail. The right solution will vary based on the customer segments being targeted, competition, product/service offering and type of interaction. Basically, all the elements we should be naturally considering in the optimization of customer experience, mapped against the economics of the business.

The winners will not be the companies that execute a particular strategy, but those that understand their strategy for their target customer and build the optimized strategy for their business. That’s what Apple did, at a time when nobody in their industry thought retail could work. They looked to their own, integrated experience design for the demographic they sought to conquer.

But Apple is an overused example. Take an unheralded success story: Best Buy. In 2012 Best Buy was the easy oneway bet everyone wanted to make; Amazon was going to crush them. Hubert Joly, the new CEO faced a formidable challenge: at the time, Best Buy was asking customers who price shopped in the store using mobile devices to leave the premises. As one senior leader quipped at the time, generally retailers worked hard to get customers into stores, not throw them out.

Best Buy recognized that customers didn’t always want an online experience; it was dependent on the nature of the product and the reason for purchase. Sometimes, inperson service was decisive. This didn’t extend to an opportunity to premium price; while there was some advantage to being able to take a purchase home, being out of price position was simply taking the business out of consideration. No, price competitiveness was a given, but Best Buy discovered that there were segments and journeys that it could compete successfully to own.

Ironically, some 8 years later, Amazon is pushing into physical retail operations and just about every retailer has established a robust online operation. For some, it’s been the slow response to the change in consumer habits that have hurt them the most. For others, it’s the ability to think about customers in a multi-modal universe that’s been a new skill. The emerging reality for all businesses is that building a winning experience around the customer often requires an ability to think like the customer, in terms of journeys, jobs-to-be-done, or as in the case of Best Buy, life experience that drive purchase. It’s those skills, and the data and systems that support them, that drive success.

It may be that Microsoft’s call on closing stores is the right one after all. For their customers, with their products, perhaps the optimal journey doesn’t run through an unprofitable shopping mall operation. Knowing that, the current crisis gave them the perfect air cover to focus on serving customers optimally, and exit a business that wasn’t contributing to either financials or customer experience.

ABOUT RICHARD OWEN

As CEO, Richard’s singular professional focus: Delivering financial value through CX. He co-founded OCX Cognition to combine technology and programmatic consulting in pursuit of that goal, and now leads the company’s coordinated efforts to deliver the right solutions for its clients.

Richard’s 30-year career has centered on transforming business operations with technology, and he is one of the best-known CX thought leaders. While CEO at Satmetrix, his team led the development of the Net Promoter Score® methodology with Fred Reichheld, creating the world’s most widely used CX measurement approach. With Laura Brooks, he co-authored Answering the Ultimate Question, the best-selling “how to” guide for NPS practitioners.

Richard transformed the supply chain and built what was then the world’s largest e-commerce business at Dell, and has led two software companies, AvantGo and Satmetrix, to successful exits. With an MBA from MIT Sloan Management School, he has served on several boards and committees at public and private companies and is an active venture investor and international business thinker. Richard has lived on three continents; he and his family now divide their time between Arizona and London.

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

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CX darling Revolut slips up on layoffs, and it matters.

Digital Rotten Scoundrels vs. NPS

How automation without CX planning creates disaster.

The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!

The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!

INSIGHTS
The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!
JOURNAL

The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!

Why claiming an NPS of 100 reveals a popular but illogical mistake.

The marketing team is keen that I get the hang of this clickbait business. Apparently, “Top 5” lists score highly, but I’m not sure I’ve got the hang quite yet. Still, of all the things you can do to make nonsense of your CX initiative, I do think I have a favorite. What is it? Keep reading.

I was inspired by reading of a tech company that recently publicized that they had an NPS of 100. Naturally I was intrigued. Cynically, my first thought wasn’t “wow these guys are loved by their customers,” more along the lines of “what on earth?” only with more colorful language.

Deeper examination of the claims of this company “unprecedented in the industry” quickly reveals the glitch in their thinking.

Let’s think of this through the lens of probabilities. It’s not impossible to achieve 100-point NPS, just improbable. Highly improbable. There are some companies that legitimately achieve high 80’s or low 90’s, but sooner or later, you run into some customers who just don’t love you that much. Boom, there goes your perfect no-hitter. Of course, you might just have one customer, which certainly gives you a better shot, but I was already willing to wager that this was less a sample problem, more a case of fundamental misunderstanding. Yup.

Deeper examination of the claims of this company “unprecedented in the industry” quickly reveals the glitch in their thinking. It’s a popular one, and it’s my pick for the top way to mess up: They measure the technical support experience, ask the recommend question, then call the result NPS.

With the exception of a certain corner case, which I’ll share in a minute, that’s not even vaguely correct. The foundation of NPS is its linkage to financial performance and is based on the idea that NPS reflects the sum of all experiences. In this instance, if your NPS was just technical support, the quality of the product, your implementation experience, sales experience, pricing – none of those would matter. Heck, if they shipped you the wrong product four out of every five times, nobody would apparently care. Nope, it’s just the tech support call, which presumably only a subset of your customers even attempts. Even better, don’t let them get through to the tech support lines, try and filter them for some easy issues – a bot should be particularly good at that.

Tech support, customer support, customer success calls – these are events that tend to score high, because the customer is, quite reasonably, judging you on the resolution of the problem they have, not their overall experience. Pick your favorite metric to measure this – I personally like the Customer Effort Score – but don’t go thinking you are going to outstrip the competition exclusively on the basis of your tech support.

Think about this: According to the logic of equating tech support experience with NPS, if you have a perfect product, one that requires no technical support at all, you are depriving yourself of the opportunity to create all those promoters! Better get some bugs programmed in, stat. We should start referring to “call avoidance” solutions as “promoter avoidance” solutions and cut back on all our tech spend in the contact center.

I did suggest a corner case. As NPS is supposed to summarize all the relevant experiences, it’s possible that the technical support call does represent all those experiences. That would be because you are fundamentally in the business of providing support. Logically, this doesn’t have to be an “all or nothing situation” – the closer you get to that model, the more relevant the support call is. You could argue that one of the historic NPS leaders, Rackspace, was basically a support company for a customer who purchased a “commodity solution” from them. If the only differentiator in their industry is support, and all other factors are negligible, support experience converges on overall customer experience. No wonder they built their franchise around the concept of “fanatical support,” since that’s really what their business was.

For the rest of you, including the 100-point NPS guys I mentioned, don’t confuse support experience with the complete customer experience. Your customers won’t.

ABOUT RICHARD OWEN

As CEO, Richard’s singular professional focus: Delivering financial value through CX. He co-founded OCX Cognition to combine technology and programmatic consulting in pursuit of that goal, and now leads the company’s coordinated efforts to deliver the right solutions for its clients.

Richard’s 30-year career has centered on transforming business operations with technology, and he is one of the best-known CX thought leaders. While CEO at Satmetrix, his team led the development of the Net Promoter Score® methodology with Fred Reichheld, creating the world’s most widely used CX measurement approach. With Laura Brooks, he co-authored Answering the Ultimate Question, the best-selling “how to” guide for NPS practitioners.

Richard transformed the supply chain and built what was then the world’s largest e-commerce business at Dell, and has led two software companies, AvantGo and Satmetrix, to successful exits. With an MBA from MIT Sloan Management School, he has served on several boards and committees at public and private companies and is an active venture investor and international business thinker. Richard has lived on three continents; he and his family now divide their time between Arizona and London.

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

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What Is the New NPS Manifesto?

Two years of research built on 15 years of CX leadership.

How Covid-19 Affects CX

Three Serious Mistakes in CX Program Design

Three big blunders which ensure that failure is your fate.

The Three Root Causes of NPS Failure

What more than 1,000 implementations reveal about most CX program failures.

The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!

What Can NPS Teach Us About “Responsible” Capitalism?

INSIGHTS
What Can NPS Teach Us About “Responsible” Capitalism?
JOURNAL

What Can NPS Teach Us About “Responsible” Capitalism?

Focused, thoughtful metrics can be a powerful tool for social good.

Capitalism and markets have always felt like the worst possible system for organizing an economy, until you consider the alternatives. Yes, they generally create the right incentives. There is an underlying element of meritocracy. They usually maximize growth, and growth  usually – lifts everyone. 

But they have downsides as well. Markets do not care about inequities, it’s more about spoils going to winners. And markets made the Kardashians wealthy. How can any system that does that make sense?

Doing right by employees and customers is not just a moral imperative; it’s good business.

Yet capitalism does not have to be a static concept. It can change for the better, and in the face of social upheaval these days, many are insisting that it must. Perhaps our emphasis on innovative measurement in business could be a big part of broader solutions that teaches valuable lessons about how business does, and does not, respond to change. 

In a democracy, the economy serves the public, and if the system does not achieve public goals, it deserves reform. And today there is a growing sense that reform is needed. During a period of unprecedented prosperity here in the United States (as measured by unemployment or GDP), real wages for the least educated have barely moved. Now, you may think that levels of inequality are the product of a “rigged system,” or just the reality of meritocracy and competition, but regardless they are an unsatisfactory outcome from a societal viewpoint. Aside from social stress, prosperity isn’t very prosperous if half the population doesn’t see personal progress. 

Business leaders have responded by calling for “responsible capitalism” or “stakeholder capitalism” – models that suggest we need different objectives for the corporation, perhaps even alternatives to the profit motive. They hint that profit comes at the cost of social good. But is that necessarily true? I would contend that what corporations and their investors really need are better ways to measure the performance of business that demonstrate the connection between good business practices and good profits. 

OK, I’ll grant you “measurement” is not a particularly sexy topic. You were hoping for something a bit more prescriptive, perhaps? Maybe even definitive: Let’s regulate the outcomes we seek! 

But prescription or regulation tend to be less effective than incentives in market economies, and what we need is leverage, which comes from millions of independent decision makers moving in the right direction. Yes, measurement is sexy in markets. 

The argument for “stakeholder” or “responsible” capitalism by and large comes down to the same thing: There is a right way to achieve profits, and a wrong way. We imagine the former to be a business model that rewards employees appropriately, protects the environment, works to correct inequality in our society and provides equal opportunity. And that is just my wishlist – you probably have your own. “Responsible” capitalism, its proponents imply, requires monitoring and balancing several outcomes, including profit, environmental impact, social impact and others.  

But that can create both legal and practical conflicts that are conveniently overlooked but massive in ramification. Ironically, it can create incentives for management to spend corporate resources selfishly or inefficiently and risks cronyism and bias. When the owners or enterprise, the shareholders, lose faith in management protecting their interests, value usually gets destroyed and not just for the shareholders but for society overall. 

Still, if we don’t love the results of today’s seemingly profit obsessed business, and alternative goals have their own drawbacks, how do we change? To paraphrase the old joke, if capitalism is hurting, you just aren’t doing it right.  

Consider this: the widespread popularity of NPS is driven by a belief that doing the right thing by your customers actually drives profits, if you measure it the right way. Based on that simple idea, thousands of boards, management teams and leaders have adopted NPS as a measurement, often with teeth – accountability and compensation. In other words, massive leverage for good profits.  

Now, we know that businesses with high NPS outperform their peers in terms of growth and profits, the two most significant variables in stock price valuation. We also know that employee alignment matters; companies with the right culture, right engagement of employees find positive linkage with both NPS and profitability. In other words, all three of these variables tend to occur in high stock performance companies. Doing right by employees and customers is not just, or even primarily a moral imperative; it’s really good business.  

Better yet, we know that customers and employees want to associate themselves with ethical businesses. That means more than “don’t be a crook” these days, it means doing right by all those stakeholder groups we started with. Sure, someone still chooses to work for those robo-calling “scam the aged” companies, but I’d suggest that they aren’t exactly talent magnets. 

On this point, one final observation is worthy of note: The “transmission mechanisms” that makes high levels of employee engagement impact profitability and growth often flows through customer outcomes anyway. Engaged employees drive customer outcomes drive financials.  

It would seem that in market economies, all roads to profit tend to lead through employees and customers. And many of our socially desirably outcomes are what both groups want. Is the profit motive really at odds with a better society? 

Maybe we should ask: if this is such an obvious alignment, why is it not happening already? 

First, to be effective as a measurement for investors, a given metric needs to be accepted as de facto or de jure. In practice, that means that either the government comes in and defines it, or everyone agrees on a standard because it just works in practice. Generally, it seems the public markets prefer the former, which is why Rob Markey of Bain & Company makes a compelling case for FASB (Financial Accounting Standards Board) to force standardization around customer reporting. Doing so, he argues, would build more reliable, transparent metrics, and would be taken seriously by investors as a driver of profit.  

That’s true, but might not happen, or even be needed. Private investors, wall street analysts and boards of directors all have a strong, profit-driven interest in better metrics. Transparency would convince employees, customers and the public that the company was sincere in its efforts and enable calibration of progress. Many private investors – the oft-maligned venture capitalists and private equity firms – have figured out that any new metric that provides a glimpse into productivity or future growth – is worth the effort. And worth the effort to do it right; understand the measurements, refine the calculations and hold management accountable for both accuracy and performance. They demand transparency, because they understand that measurement without transparency is like unrequited love: You can cry yourself to sleep at night, but nobody notices. 

Now, I am not suggesting that we come up with some kind of “community adjusted EBITDA” like WeWork attempted. There is a big difference between providing investors with forward-looking insights versus inventing new metrics to give a falsely positive impression of your performance. The former is referred to as “transparency” whereas the technical term for the latter is “bonkers.”

The market can drive consensus around metrics that work, metrics that link to financial outcomes. The challenge is one of corporate governance. For many leaders and boards, innovation around measurement has not caught up with the modern corporation. 

As an example, as NPS has been adopted for management compensation by many of the world’s largest corporations, boards and CFOs both find themselves in an unfamiliar territory, that of non-financial, nonstandard metrics that matter. It is just not sufficient to post scores that are not fully understood and too many metrics cited on earnings calls don’t withstand even superficial scrutiny. Leadership needs to do the work of understanding the critical metrics they rely on and building the right measurements. The same lessons apply to a raft of innovative measurement that link socially desirable outcomes to profitable performance, such as employee population diversity. 

If the path to a better society runs partly through enterprises, we should understand better what makes enterprises work. Profit is not necessarily in conflict with responsible business and thinking that way might cause as many problems as it solves. Rather, let’s better equip leadership to finding paths to higher profitability and growth and show, with data, that responsible business is good, profitable business.

     

    ABOUT RICHARD OWEN

    As CEO, Richard’s singular professional focus: Delivering financial value through CX. He co-founded OCX Cognition to combine technology and programmatic consulting in pursuit of that goal, and now leads the company’s coordinated efforts to deliver the right solutions for its clients.

    Richard’s 30-year career has centered on transforming business operations with technology, and he is one of the best-known CX thought leaders. While CEO at Satmetrix, his team led the development of the Net Promoter Score® methodology with Fred Reichheld, creating the world’s most widely used CX measurement approach. With Laura Brooks, he co-authored Answering the Ultimate Question, the best-selling “how to” guide for NPS practitioners.

    Richard transformed the supply chain and built what was then the world’s largest e-commerce business at Dell, and has led two software companies, AvantGo and Satmetrix, to successful exits. With an MBA from MIT Sloan Management School, he has served on several boards and committees at public and private companies and is an active venture investor and international business thinker. Richard has lived on three continents; he and his family now divide their time between Arizona and London.

    ABOUT OCX COGNITION

    OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

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    The Top One Thing That Will Cause Your Net Promoter Program to Fail!!!

    Does Customer Experience Really Mean Business?

    INSIGHTS
    Does Customer Experience Really Mean Business?
    JOURNAL

    Does Customer Experience
    Really Mean Business?

    In a changing business landscape, CX matters now more than ever.

    As a customer experience leader in a B2B business, I had to sit through many meetings to defend what my team and I were doing. I have been challenged many times regarding the statement: “Customer experience is all well and good, but does it really contribute to the bottom line?” The current situation with COVID-19 has amplified this question as executives trying to drive revenue recovery ask their CX leaders why achieving a high NPS is so important now. This challenge is understandable. COVID-19 has pushed us – and everybody we are doing business with – into a corner. And coming out of this corner requires energy and courage and a certain amount of psychological safety. But first of all, it requires a stabilized cash-flow to make sure your business can survive.

    The key question is whether customer experience really means business. This is the time when this question comes to a test.

    Spoiler alert: Yes it does, and it actually is part of the foundation of your business success.

    Your and everybody’s business success depends on one simple factor: Do you have a product or service that people want and can buy? Viewed like this, your business success is in the hands of your customers – much more than in the hands of your investors and banks. While your people and resources such as money, raw materials or relationships create your products and provide your services, it is only customers who spend their dollars, euros, pounds or francs with you that let you be in business.

    But how do you manage CX effectively and connect it so that senior leaders and everyone in an organization fully support it? First, you need to be able to understand and manage how well customers perceive their experience with your business with the same attention to detail as you understand and manage your financials. While most of us have become very proficient in managing financials, it is still only the best companies who also look at customer and employee data to get a more balanced view of future business success.

    In my experience, the most successful approach in convincing executive leaders was showing them their own customer experience data and its relationship to financial outcomes. Customer experience data has proven to be highly indicative of future behavior and is therefore a robust indicator of customer lifetime value. It is also a very good early warning system, giving you the opportunity to take action and correct problems before you see a negative impact in your financial results. 

    Future-oriented executive leaders have realized that measuring and managing CX in addition to getting a good view on your people and your financials is crucial to stay ahead in business. If we want to compare it with a car analogy: Looking at financial performance will give us mostly a look through the rearview mirror where we can see the nice landscape we just passed. It also tells us whether there is still enough gas in the tank (or power in the battery). CX can provide us with the indication of how fast we are driving and in what direction. So the question also for executive leaders is: “Do you know where you are heading? And do you also know how fast you are going?”.

    What is also especially important to understand is that the lockdown has made us adopt new habits. Some of our behaviors have changed. Let’s take another simple example. Most of us haven’t eaten in a restaurant for a long time. While it was easy three months ago to go to this or that place for that nice lunch or dinner, it has become very difficult these days. Delivery is only a meagre replacement. But many of us look forward to going out and have this exciting lunch or dinner one of these days soon. Where will you go first? It is highly likely you will go there where you had the best experience, also where you feel a certain sense of loyalty to the place. That way you will also support that restaurant to getting back into business. And let’s be sure, the restaurant will get out of their way to make your experience memorable so that you will come back and tell your friends about them.

    This restaurant example highlights what is the case with most businesses, including yours: People remain loyal and buy more from businesses from which they get the best experience and value. If you have provided a solid customer experience before, people will come back – they might even shift business from other places to you. Having provided an excellent customer experience is the entry ticket to a fast revenue recovery. You win if you provide an experience that your customers perceive more valuable than what they can get elsewhere.

    When it comes to revenue recovery, managing your customer experience actively has become even more important than before. The lockdown has been long enough for everyone to develop these new behaviors and preferences. Whether in B2B or in B2C, customers are consciously and unconsciously assessing where they will spend the money and will make sure that they get the best value for it. I would argue that it is the job of every leader and in particular every CX leader to understand what this value means for each customer and how we can ensure that this value is better than any alternative offering. Those who understand the needs of their customers and consumers better than their competitors will rebound faster and will be able to build a more sustainable business. 

    But what happens if you have not provided a great customer experience before the crisis? Perhaps you were lucky that you had a product or service that people needed and didn’t have much choice. But now you have an opportunity to rebound. Post-COVID, customers will look twice and this provides an opportunity to redesign how you perform in the eyes of your customers and prospects: Act now, listen more to their needs and requirements and become their partner of choice.

    You have to look at your business like any restaurant owner: It’s not only the menu and the prices that count (they are important, no doubt about that), but it is how it is being served and how you are being treated that makes you want to come back. Customer experience is a key strategy to stay in constant dialogue with your customers and consumers. This dialogue allows you to create a better offering which allows more people to buy and engages your employees to deliver better. And all in, this will support a quicker and more sustainable revenue recovery and allow your business to flourish longer term.

    If you haven’t started yet, start now to focus on revenue recovery. And start wearing your customer experience glasses: Actively managing your financials, people and customer experience allows you to actively manage the future of your business especially in the “new normal” because a customer-centric approach also provides important guidance when looking at refocusing business to recover revenue and safeguard important cash flow streams.

    ABOUT BJOERN KALIN

    Björn Kälin has been heading Customer Experience and Insights Teams at leading global companies in the B2B and B2C area. He is a Senior Partner and Leadership Advisor with StrategyPod, an Advisory company that is guided by analytics and diagnostics to drive strategic alignment, people empowerment, and build mission-critical capability.

    ABOUT STRATEGY POD

    StrategyPod is a boutique strategic planning and analytics advisory firm with 45 staff based in offices in Geneva, London, New York, Philadelphia and San Francisco. We start with your existing strategy and work with you to leverage and align your existing business capabilities. As a result you improve strategy implementation. We implement lasting solutions for you on topics like strategy implementation, leading change, business portfolio management, growth and value creation, capability building, growing talent and shifting culture. Learn more at strategypod.com.

    ABOUT OCX COGNITION

    OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

    Featured Insights

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    Leading a CX Program in Extreme Circumstances

    Learn to manage your program today while preparing for the post-pandemic “new normal.”

    BRIEF

    Covid-19 Means Your Company Has to Cut Costs?

    Time for the CX leader to suggest how.

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    What Is the New NPS Manifesto?

    Two years of research built on 15 years of CX leadership.