Who Is Your Customer? The Answer May Not Be Easy

Who Is Your Customer? The Answer May Not Be Easy

NPS BASICS AND BEYOND
Who Is Your Customer? The Answer May Not Be Easy
NPS Program Segmentation

Who Is Your Customer?
The Answer May Not Be Easy

key takeaway

Starting your NPS program by asking yourself who your customer is may seem like an oversimplification, but answers within an organization often vary widely. Accurate customer segmentation delivers great value.

Best Practice

Segmentation is grouping customers by attributes or behaviors that represent key distinctions. Understanding how a customer’s experience varies by segment across their journey with you enables you to better target high value customers for journey optimization. The approach you take will vary depending on whether you are B2B or B2C or B2B2C.

In B2B, the individual is a part of an account. Segmentation by account means looking for mutually exclusive data clusters which will enhance your data analytics, e.g. region, revenue tier, tenure, products purchased. As you define your key segmentation categories, we recommend that you not only consider how you currently view data, but how you would like to see data in the future. Additionally, ask yourself if the category is a true differentiator.

Before we move on to B2C, be reminded that there are a couple of instances where you may benefit by applying the behavioral segmentation typically seen with consumers to the individuals who make up the account. A common example of this is identifying the influence level of individuals within the account, e.g. C-level stakeholder, senior manager, decision maker, influencer, end user. In the case of a software company with a high volume of users, defining profiles or personas may yield great insights.

In B2C creating personas is a form of behavioral segmentation that works well as you are dealing with a large, homogenous universe. Personas are the human representation of a group of customers, a way of bringing a scenario to life using characters who typify a particular customer group. When thinking about customer journeys it can be helpful to look at what the journey with an insurance company would look like for John, who is 46, married with two children, technically savvy, enjoys cycling and eats healthy. Keep in mind that personas can overlap segmentation as outlined earlier, for instance customers in segment A can be like John or Mary another persona.

You may be asking; how do we define who is our customer in B2B2C. We recommend that you consider it to be the business, your economic buyer while keeping in mind the importance of the consumer experience and how it impacts your business customer.

Ultimately, we encourage you to think of segmentation as a tool to help develop your customer strategy. Which customers are the best targets for experience optimization to deliver financial and competitive gain for your business.

go beyond basic nps customer strategy

These foundational NPS practices are critical for understanding and improving the customer experience. Your insights will be limited by your data. Taking your customer strategy to the next level means you’ll need to radically expand the data you routinely analyze and include, going far beyond attitudinal data to operational metrics and data culled from customers’ daily experiences and interactions. 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

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.

Who Is Your Customer? The Answer May Not Be Easy

Journeys That Lead to the Right Destination

NPS BASICS AND BEYOND
Journeys That Lead to the Right Destination
JOURNEY MAPPING

Journeys That Lead to
the Right Destination

key takeaway

NPS is an outcome of the entire customer journey defined through the lens of your customer, and different customer segments may value elements of their journeys in different ways.

Best Practice

While NPS is the sum of all experiences with your brand, early life, mid-life and endpoint touchpoints along the journey will have varying degrees of impact on Likelihood to Recommend, and therefore on the Net Promoter Score. Journeys are not always sequential, and sometimes go backwards and forwards, reflecting the various paths which a customer may take while moving along the journey. Yet it is still convenient to think in terms of a series of events.

The experiences with the greatest impact are called “moments of truth.” From the customer’s perspective, moments of truth are the key interactions that make or break their relationship with you, ultimately impacting their decision to stay or leave. If they go well a customer likely stays with you, if they go poorly a customer will be looking at competitive options. A common mistake we often see is that organizations think of moments of truth from the sales point of view, e.g. chose us as a vendor or renewed contract, rather than from your customer’s point of view.

Your data collection design should be reflective of your client’s journey from both the end to end experience perspective and the touchpoint perspective. Solicited customer feedback, along with operational KPIs and financials, can then be layered over the journey to provide an even more powerful view of your client’s experience and contribute to predictive models.

A journey map is a living tool to be revisited and updated with a regular cadence involving customers and internal departments such as sales and operations. Your journey maps allow you to:

  • Visualize the end-to-end experience from the customer’s point of view
  • Understand how both touchpoint factors (such as processes) and cross-touchpoint factors (such as omni-channel or disparate systems) influence the experience
  • Understand what the truly impactful experiences are
  • Select the most effective mechanisms to capture data for specific touchpoints
  • Determine the timing and frequency of gathering data
  • Align functional area accountability
  • Establish employee connections to the customer experience
  • Underlay multiple data types and metrics to the journey

Journey Mapping Tips

  • Use customer language, not internal language, e.g. use “select” or “purchase” rather than sales
  • Think sequentially. What does the customer do right before each stage and right after each stage?
  • Consider what the customer is trying to accomplish at each stage
  • Consider the customer’s expectation at each stage based on your brand promise
  • Identify the points of pain a customer might experience at each journey stage
  • Identify the moments of truth along the journey – interactions that have high impact
  • Document people, processes and systems that align with an individual touchpoint as well as across touchpoints
  • Validate your journey maps with actual customers

Example

Source: Journey Map Example, OCX Cognition.

go beyond basic nps customer strategy

These foundational NPS practices are critical for understanding and improving the customer experience. Your insights will be limited by your data. Taking your customer strategy to the next level means you’ll need to radically expand the data you routinely analyze and include, going far beyond attitudinal data to operational metrics and data culled from customers’ daily experiences and interactions. 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

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.