Download the entire eBook here: http://info.peoplemetrics.com/from-measurement-to-transformation-getting-the-most-out-of-your-customer-feedback-program-ebook

1. Copyright © PeopleMetrics, Inc. an ebook by
R
From Measurement to Transformation:
Improving Your Customer Feedback Program

2. From Measurement to Transformation: Improving Your Customer Feedback Program
Contents
What is customer feedback doing for you?
Measuring the Customer Experience
Managing the Customer Experience
How Voice of the Customer Works
What to Look for in a Voice of the Customer Solution
Which companies will benefit from Voice of the Customer?
Further Information
1
2
3
4
5
9
12

3. a PeopleMetrics ebook | 3
From Measurement to Transformation: Improving Your Customer Feedback Program
What is customer feedback doing for you?
Customer satisfaction measurement has been around in one form or
another for close to half a century. So if you work for a customer-centric
organization, you are probably measuring how satisfied (or loyal) your
customers are with your company, products, and services.
Customer feedback should be an essential element of every organization’s
strategy. Without customer feedback, we’d likely base decisions on gut
instinct, personal beliefs, and experiences — subjective reference points
that may not align to the customers’ needs.
The Value of Customer Satisfaction Research
Despite the importance of collecting customer data, marketing managers
often find their customer surveying efforts on the budgetary chopping
block. Capturing customer feedback on an ongoing basis can require a
significant investment of time, funds and resources. If leadership sees
consistently high satisfaction scores, but flat-lining business growth, they
might question the ROI of the spend.
Voice of the Customer is an approach to measuring and
managing customer experience at the individual level.
Some of their questions might include:
• How are these satisfaction scores and quarterly trend lines helping us
keep our current customers and grow our customer base?
• Why do we see satisfaction scores in the 80s and 90s, yet we don’t see
significant business growth or an increase in market share?
• What are we really doing with this information?
Benefits of a Voice of the Customer Solution
Do any of those questions sound familiar? If so, you may want to consider
a Voice of the Customer (VOC) solution. VOC helps organizations measure
and manage the customer experience at the individual level.
VOC has grown in popularity because it goes a step further than looking
at aggregate customer satisfaction scores and wondering why they’re not
changing. VOC is about taking action on individual customer feedback —
actions like recovering lost customers, recognizing employees who went
above and beyond, identifying customer growth opportunities, gathering
positive customer testimonials for marketing purposes, and much more.

4. From Measurement to Transformation: Improving Your Customer Feedback Program
a PeopleMetrics ebook | 4
Metric Typical Question Score/Index Calculation Advantages Disadvantages
Customer
Satisfaction
“Overall, how satisfied are
you with the company’s
products and services?”
Typically asked on a 5-point agree/
disagree scale
Scores are presented as “top box” (5’s)
or “top two box” (4’s and 5’s).
Easily understood by internal and
external customers
Most common / traditional metric
Less precise and variable data, which
often results in consistently high
scores
No clear correlation between high
levels of satisfaction, resulting
behavior, and business results
Net Promoter
Score (NPS)
“How likely would you
be to recommend the
company to a friend or
family member?”
Typically asked on a 0-10 scale:
“Not at all likely” to “Extremely likely”
Percent of Promoters (9’s or 10’s)
minus the percent of Detractors (0’s to
6’s) is the NPS.
Simple and easy to assimilate at
all levels in the organization
Often the industry-standard
calculation
Single-item outcome score has been
shown to be less reliable than a
composite measure
NPS measures just one element of
customer engagement: Advocacy
Customer Effort
Score (CES)
“How much effort did
you have to put forth to
handle your request?”
Typically asked on a 5-point scale
from very low effort to very high
effort
Good way to assess how hard it is
to do business with you.
Ease is a known dimension of a
good customer experience, so
removing barriers to ease is a
good starting point
High-effort actions (e.g., mortgage
applications) require the scale to be
adjusted to expectations.
Covers one aspect of experience, and
unrelated to emotional outcomes
from human interaction
Customer Loyalty
Index (CLI)
or Customer
Engagement (CE)
Varied questions, based
on four measurements:
1. Retention
2. Effort
3. Advocacy
4. Passion
Typically asked on a 5-point agree/
disagree scale
CLI usually covers Satisfaction,
Retention and Advocacy; CE aims
for more emotional elements that
indicate stickier relationships (like
Effort and Passion).
Measures emotional and
behavioral outcomes as a
composite score
Shown to be correlated with
business performance across
industries and companies
Not always the industry standard
Takes some explanation for users to
understand the score and how it is
calculated
Improving your customer experience requires a commitment to improving every customer interaction. It’s important to choose a metric that works for
your company — one that every level of business can understand and can readily work to improve. Here are options:
Measuring the Customer Experience