The document discusses how measuring customer experience has evolved from basic voice of customer surveys to more holistic platforms that combine various data sources to provide insights into customer journeys, experiences, and feedback in order to identify issues, measure satisfaction improvements, and guide customer experience efforts. It also outlines how organizations can utilize these platforms to close feedback loops with customers, analyze trends, share insights across departments, and influence employee behavior to improve business performance.

1. Defining customer experience
Measuring the
Customer Experience
5th May 2017

2. Voice of customer (VOC) platforms used to be thought of as systems that sent surveys to collect
feedback about customer satisfaction so that the data could be exported and distributed across an
organisation. As the sophistication for customer experience has grown, so has VOC. Today, these
platforms have become tools to combine customer feedback with other indirect, unstructured and
inferred data so as to view customer journeys, understand customer experiences, employee
experiences, identify and resolve issues, measure improvement in satisfaction, loyalty, brand advocacy
and business performance.
Surveys have become table stakes, VOC platforms have become much more holistic in order to
differentiate themselves, including:
• Absorbing and analysing data from other systems, such as CRM, call center, social media
and web analytics platforms.
• Providing ways to close the loop with customers using alerts and workflow management.
• Analysing unstructured data, not merely text answers to open-ended survey questions, but
emails, social media and voice calls.
• Sharing the customer stories across the organisation with interactive and individual
dashboards for employees, managers, functions and leaders.
• Integrating and capturing the voice of the employee (VOE).
• Using predictive analyse to influence the future not just measure the past
• Offering powerful analysis to identify trends and discover insights to guide CX efforts and
investments.
The opportunity, however, is for organisations to make the most of this cacophony of data and utilise
the insight to influence behaviour and bring the VOC out from the technology and into the head,
hearts and hands of the people
Measuring the Customer Experience

3. PROCESS/TECHNOLOG
Y
CUSTOMER
EXPERIENCE
CUSTOMER
BEHAVIOUR
PEOPLE
BUSINESS RESULTS
PRODUCTS/SERVICES
PURPOSE
• Employee NPS
• Team engagement
• Team turnover
• Product performance
• Service standards
• Digital transformation
• Process improvement
• Performance at
hallmark moments
• Delivery of the
customer promise
• Repeat
purchase/retention
• Customer
recommendation
• NPS
• revenue
• Profit
• efficiencies
• brand
perception
• Brand
consideration
We think about the CX scorecard as a holistic way to link the leading indicators to the
business performance. The scorecard is not static so a dynamic real time view in a
VOC platform is required to effectively manage the customer experience
Customer Experience Scorecard

4. The purpose of your VOC program is not to chase numbers and metrics.
The metric is not your target the purpose is to positively impact on
customer behaviour in terms of loyalty and advocacy. It is easy to get this
mixed up, especially in most organisation who are primarily focused on
output metrics.
If we take NPS as an example the metric itself is good to know and try to
improve. But the economic impact is not driven by the score, it is driven by
by the behaviour of the customers. The individual buckets of Detractors,
Passives and Promoters better represent this behaviour than the score
If we take an NPS of 30 this can be made up in many different ways
between the number of Detractors, Passives and Promoters. The positive
economic impact, however, is much greater from Promoters than it is
negatively impacted by Detractors. For the greatest economic impact we
are better served focusing on creating more Promoters, than on reducing
detractors. So an active program of promoter management is important.
This includes resolving customer issues because in many organisations
some of the best Promoters are those that have been impressed by how
issues have been resolved
Its not numbers we are chasing
FY15 FY16 FY17 FY18 FY19 FY20 FY21
NPS Growth
%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10
Loyal Customers Satisfaction Ratings
Repurchase intention

5. Each department/function has different objectives/requirements
Executive
• Demonstrate the link to commercial performance
• Help bring the customer to the four front and share the
story
• Create operational efficiency
• Improve business performance
Front line teams
• Real time action – close the loop
• Know how well they are performing for CX
• Bring the customer front and centre
Senior Management
• Demonstrate the link to commercial performance
• Help bring the customer to the four front and share the
story
• Create operational efficiency
• Benchmark performance
• Simplify processes and reporting
Head office
• Bring the customer story alive for people who don’t
normally see the customer
HR
• Show the link employee experience to CX
• Reward & recognition on delivery of the CX and EX
CX team
• Continuous learning
• Root cause analysis to solve issues
• Help bring the customer to the four front and share the
story
• Create operational efficiency
• Analyse the huge amounts of unstructured open comments
and turn them insight and action
• Self serve tool – rather than using consultants and analysts
• Ability to see performance across the customer journey
• Ability to drive ongoing innovation and design
• Ability to measure the impact of their strategy
• Capability to predict customer behaviour
Customer Service
• Real time action – close the loop
• Root cause analysis
• Ability to respond fast
Like any multi-stakeholder project collecting and manging these expectations is difficult. As long as your VOC platform is
scalable to your needs we recommend taking a more agile approach - start small and evolve as you go. The speed to set up
and get value out of VOC platforms is weeks not months so get going and show value early

6. There are different levels of VOC program
a
• Low Cost
• Low frequency NPS/relationship data
• Manual analysis BASIC SURVEYS
OPERATIONAL VOC PROGRAM
TRANSFORMATIONAL VOC
• Multiple touchpoints, periodic NPS
• Non-integrated data
• Manual analysis
• Continuous, real-time data
• Complete customer journey view
• Robust, effective closed loop
• Dashboards for different business units,
functions and levels
• Broadening employee engagement
• In built automated analysis
• Predictive analytics
• Integrated operational data hub
• All-employee engagement
KEY FEATURES LEVEL
ENHANCED SURVEYS

7. VOC program maturity model
BUSINESS BENEFITS
Quick Wins Improve Retention & Repurchase Reduce Cost to Serve
Price Premiums
Lower Acquisition Costs
ENGAGE THE
ORGANISATION
► Stakeholder alignment
► Connect employees to the customer
journey
► Closed loop processes
► Baseline performance
IMPROVE THE EXPERIENCE
► Prioritized investments based on
drivers
► Net Promoter economics
► Monitor trends against baseline
► Enterprise expansion
MARKET LEADERSHIP
► Business integration
► Customer centric decisions
► Operational efficiencies
► Focused acquisition
Its not the technology itself that moves you up the maturity ladder, it’s how you use
the insight to impact on behaviour within your organisation

8. Need to create actionable insights for different groups
► Closed loop workflow
► Individual feedback
► Positive comment streaming
Goal
Increase Retention
FRONTLINE
► Loyalty drivers
► Staff performance
► Experience gaps
Goal
Improve Experiences
MANAGEMENT
► NPS by function
► Trend analysis
► Financial linkage
Goal
Profitable Growth
EXECUTIVE

9. The double feedback loop
Many organisation now have a closed loop for dealing with negative
comments within their VOC system. This allows them to quickly respond
and solve negative comments. Couple this with route cause analysis and
you have a powerful process for identifying and fixing customer issues for
good.
But as we stated earlier improving your customer experience is not just
about decreasing the number of Detractors. The bigger economic impact
is on creating and keeping Promoters.
If a promoter has provided feedback the least we can do is acknowledge it
and thank them as common courtesy. We suggest going further and
actually having a second feedback loop for Promoter management. With
this you contact your promoters to listen to them and take on what they
are saying to recognise their importance and as a way of continuous
improvement

10. You need action loops for continuous improvement
FRONTLINE
► Service recovery
► Promoter Management
► Root cause analysis
► Develop relationships
OPERATIONAL
Closed Loop (1:1)
LEADERS
► Operational
improvements
► Team performance
► Account planning
ACTION
PLANNING
(1:many)
EXECUTIVES
► Investment decisions
► Employee recognition
► Communication
RESOURCE
PRIORITIZATION
Learning Priorities
Communication
Customers
Employees
Governance
Mobilise Promoters

11. Engaging employees
A distinctive customer experience is delivered by your people and the
employee experience. A holistic customer experience dashboard should
therefore, be able to capture and integrate the voice of the employee
(VOE) as a core function.
Bringing together the VOC and the VOE provides managers and leaders
with powerful ongoing insight into the drivers and output of the experience.
It is critical to design from the outset to show how improving the employee
NPS, correlates to improving the customer NPS. For people managers
and HR departments this insight is a powerful call to continually improve
the employee experience and the customer experience

12. Creating efficiencies
As VOC programs have matured and advanced beyond simple survey
and dashboard tools the benefits have increased. One of the more
overlooked benefits is creating operational efficiencies and cost savings.
For example:
• Most organisations have lots of unstructured data that either sits doing
nothing or is a significant expense to analyse. The leading VOC
platforms have inbuilt text analytics creating real-time insight and
saving additional time and costs
• Someone in the organisation undoubtedly spends a significant amount
of time pulling together the CX reports together and carrying out
manual analysis. Automate this with real time data distributed
throughout the organisation and you save hours of time that can be
used for more value adding work

13. The future
The world is getting survey fatigue as every brand and business wants to
know if you would recommend them. Survey response rates are low and
likely to get lower so having ways of understanding what customers who
do not fill surveys in are thinking, feeling and doing will become more
important. This will mean using data from digital, CRM, contact centres
and across the business to create a ‘synthetic NPS’ that does not rely on
surveys and can be applied to the entire customer base to predict
behaviour.

14. Smith+Co
+44 (0)207 7064 4775
tw@smithcoconsultancy.com
smithcoconsultancy.com