Useful survey, you see them all, and often not well applied, just used for historical or cost/availability reasons. You get what you measure.
Does it matter which customer experience metric you choose?
Alyona Medelyan in CustomerThink.
Are you responsible for measuring the progress in improving customer experience? If yes, I’m sure you needed to come up with a rationale on which metrics to choose for this: Is it an all ubiquitous Net Promoter Score (NPS), the traditional customer satisfaction CSAT, or a more recent invention Customer Effort Score (CES)?
Is one enough or should you implement several metrics? Does it actually matter? Here, we discuss the two arguments: Pro and against.
Why choosing the right metric matters
Choosing the right metric matters to the extent that the metric must be meaningful to the specific customer touchpoint you’re wanting to analyze.
A metric such as the Customer Effort Score (CES), which measures the ease of the experience on a scale from Very Difficult to Very Easy, will be relevant for a touchpoint where the ease of use is the primary driver, for example when setting up a money transfer using online banking.
CES is ideal to use immediately after an interaction with a product that led to a purchase or subscription, or after an interaction with customer service rep to solve a problem. You can also use it to measure the aggregate experience someone has with your brand or product in general.
Your perception of something is your own view or interpretation of something. However, an attitude is closely related to actions or behavior. An attitude is often expressed, through words or behavior – and can be perceived by others. .... "
Showing posts with label NPS. Show all posts
Showing posts with label NPS. Show all posts
Saturday, January 05, 2019
Thursday, July 19, 2018
Emotional Marketing Driving Growth
Something we looked at in some detail, starting long ago.
How Emotional Marketing Can Drive Business Growth in K@W
An image of an elegant Vermicular-brand Japanese rice cooker flashed on the screen at the Wharton Customer Analytics Conference. The speaker, Ridhima Raina, asked the audience how much they thought it cost.
After several guesses were ventured — most around a couple of hundred dollars — Raina said, “I’m from India and I eat a lot of rice. I would spend maybe $300 or $500. But on eBay, I checked this morning and it was $1,000.”
A leader in customer strategy and marketing practice at Bain & Company, Raina asserted that the main reason Vermicular can charge so much for its rice cooker compared to other brands is that the product spikes on what she called “elements of value.” It reflects two elements in particular, she said: sensory appeal, and design and aesthetics. By Bain’s calculations, these elements contribute an eye-opening 40% to the product’s Net Promoter Score (NPS), an index that measures how willing consumers would be to recommend a product to others. NPS is widely considered a key customer metric associated with customer lifetime value and revenue growth.
There might be additional value-based reasons for someone to pay top dollar for a rice cooker, Raina said. Investing that much money could be a motivation to prepare meals at home more often and to eat healthier. The product could provide a sense of well-being.
Identifying and putting numbers around how customers perceive the value of products is an ongoing project at Bain, said Raina. “Understanding value is hard,” she noted. Although the science of pricing has progressed greatly, our grasp of value hasn’t caught up, she said. While firms certainly are aware that customers have feelings and opinions about their products, there’s no established way to translate those often hard-to-define attitudes into what customers will be willing to pay, and ultimately into business success. .... " (Later gets to the emotion point ... )
How Emotional Marketing Can Drive Business Growth in K@W
An image of an elegant Vermicular-brand Japanese rice cooker flashed on the screen at the Wharton Customer Analytics Conference. The speaker, Ridhima Raina, asked the audience how much they thought it cost.
After several guesses were ventured — most around a couple of hundred dollars — Raina said, “I’m from India and I eat a lot of rice. I would spend maybe $300 or $500. But on eBay, I checked this morning and it was $1,000.”
A leader in customer strategy and marketing practice at Bain & Company, Raina asserted that the main reason Vermicular can charge so much for its rice cooker compared to other brands is that the product spikes on what she called “elements of value.” It reflects two elements in particular, she said: sensory appeal, and design and aesthetics. By Bain’s calculations, these elements contribute an eye-opening 40% to the product’s Net Promoter Score (NPS), an index that measures how willing consumers would be to recommend a product to others. NPS is widely considered a key customer metric associated with customer lifetime value and revenue growth.
There might be additional value-based reasons for someone to pay top dollar for a rice cooker, Raina said. Investing that much money could be a motivation to prepare meals at home more often and to eat healthier. The product could provide a sense of well-being.
Identifying and putting numbers around how customers perceive the value of products is an ongoing project at Bain, said Raina. “Understanding value is hard,” she noted. Although the science of pricing has progressed greatly, our grasp of value hasn’t caught up, she said. While firms certainly are aware that customers have feelings and opinions about their products, there’s no established way to translate those often hard-to-define attitudes into what customers will be willing to pay, and ultimately into business success. .... " (Later gets to the emotion point ... )
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