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Which metrics to use in VoC

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A practical guide to which metrics to use, and which questions to ask, in a Voice of the Customer (VoC) programme

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Which metrics to use in VoC

  1. 1. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. How to choose the right metric for your Voice of Customer program Futurelab Research self-help guide
  2. 2. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. 1. Get acquainted with the most popular Voice of Customer metrics: Customer Satisfaction (CSAT, OSAT) Customers express their satisfaction / dissatisfaction with a particular product / service / transaction, or even overall with the whole company (OSAT). How satisfied are you with our product? (Not Satisfied – Completely satisfied) Repurchase / Retention forecast Customers claim their likelihood to repurchase, expand, or renew with your company for products or services in the future. How likely are you to purchase from us again in the future? (Not likely at all – Very likely) Customer Effort Score (CES) Measures the effort a customer must put forth to complete a transaction to the desired state. How much effort did you personally have to put forth to buy our product? (No effort at all – Very much effort) Net Promoter Score ® (NPS) Measures the customer's willingness to refer your business to a friend. How likely are you to recommend our company to a friend or colleague? (Not likely at all – Very likely) Compound loyalty indices Complex index that may combine various loyalty / retention metric, which may include satisfaction, repurchase, recommendation, share of wallet, brand preference, etc. Examples: TNS TRIM, Ipsos Loyalty Index, etc. Customer Expectations (CExp) Measures the balance between a customer expectation from a transaction and the actual performance (as a variation - perceived worth). To which extent have we met your expectations this time? (Have not met at all – Greatly exceeded)
  3. 3. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. Delighters / Excitement 2. Use Kano model of CX to clarify what exactly you would like to measure Happy Unhappy GreatPoor Minimum Standards / Regular performance Hygiene / Must-be Read more about Kano model here or here
  4. 4. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. What are you measuring at any level? Read more about Kano model here or here Delighters / Excitement How does your company connect to the customers on the highest level of emotion; exceeding their expectations, and creating delight? Minimum Standards / Regular performance How does your company fulfil its main promises to the customer: something for which they have come to you in the first place? Hygiene / Must-be How does your company answer to the customers’ most basic needs?
  5. 5. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. What does each metric reflect? This is how the metrics map against the Kano model: CSAT CES Rep. CExp NPS NPS NPS NPS represents 3 customer segments – Detractors, Passives and Promoters, and therefore can measure all 3
  6. 6. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. The right metric should be… • Relevant: a metric should be a direct reflection of your objectives. What are we trying to learn? What do we want to do with the data? • Universal: it should be able to accurately and precisely reflect reality in all possible situations. Will it reflect good and bad conditions equally? Will it quickly react to changes? • Applicable: it should be easy to calculate; we should be able to use it everywhere, and make everyone understand it (better intuitively). • Comparative: across time periods, groups of customers, business units, competitors, etc. 2. Understand your criteria for the metrics
  7. 7. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. • Actionable / Behavior changing: once we have the metrics, what are we going to use it for? Can it call direct action? Will it drive change? But most importantly, the best metric is…
  8. 8. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. Rate all metrics to see how they all work for your company Relevant Universal Applicable Comparative Actionable CSAT CEffort CExpect Repurchase Compound metrics NPS - Does not work ~ Works somewhat + Works very well
  9. 9. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. 3. Pilot it! Any metrics should be piloted first to see how it really works for you: 1. Are the results easy to understand and communicate? 2. Does the leadership understand the value easily? 3. Do people actually use it? 4. Does it demonstrate connection to your financial parameters? 5. Does it drive action?
  10. 10. FUTURELABRESEARCH. Insights into actions.FUTURELABRESEARCH. Insights into actions. Let’s have a conversation. Go to www.futurelabresearch.com or get in touch with us for a chat: Want to know more? Stefan Kolle Founding partner sko@futurelab.net +32 47 388 89 96 Marina Natanova Head of Operations mna@futurelab.net +32 47 590 21 93

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