Contemplating the Next Customer Experience Measurement

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Metrics & Measurement
Customer Experience
A few months ago while attending the ForeSee Summit in Ann Arbor, Mich., I had the good fortune to hear ForeSee president and CEO Larry Freed share the company's rationale for developing the Word-of-Mouth Index (WoMI), a next-generation of Net Promoter Score (NPS). While NPS is focused on measuring a customer's likelihood to recommend based on a zero to ten point rating scale, WoMI goes more in depth in examining a customer's likelihood to recommend or to discourage. For instance, ForeSee was able to determine after 18 months of testing with 1.5 million customers of nearly 300 companies across multiple industries that NPS overstates detractors by 270 percent on average because it doesn't distinguish between positive and negative word-of-mouth. Larry's presentation and other discussions I've had with people about Customer Effort Score and other measurements around customer loyalty and satisfaction demonstrate that no single measurement for gauging a customer's experience is sufficient - and that new measurements for customer experience will continue to emerge.

A few months ago while attending the ForeSee Summit in Ann Arbor, Mich., I had the good fortune to hear ForeSee president and CEO Larry Freed share the company's rationale for developing the Word-of-Mouth Index (WoMI), a next-generation of Net Promoter Score (NPS). While NPS is focused on measuring a customer's likelihood to recommend based on a zero to ten point rating scale, WoMI goes more in depth in examining a customer's likelihood to recommend or to discourage. For instance, ForeSee was able to determine after 18 months of testing with 1.5 million customers of nearly 300 companies across multiple industries that NPS overstates detractors by 270 percent on average because it doesn't distinguish between positive and negative word-of-mouth. Larry's presentation and other discussions I've had with people about Customer Effort Score and other measurements around customer loyalty and satisfaction demonstrate that no single measurement for gauging a customer's experience is sufficient - and that new measurements for customer experience will continue to emerge.As analytics tools continue to evolve, companies are able to learn more and more about each customer's sentiments and preferences in near real-time across the digital channels they use (voice, web, chat, social, email, mobile, etc.). As new digital channels materialize, fresh approaches for measuring the customer experience will also be developed. Because customers don't use a single channel to interact with companies, we'll likely see new measurements emerge that assess the omnichannel/cross-channel customer experience.

How do you see customer experience measurement evolving? What types of measurements would you expect to see developed and applied by companies in the future?

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