2017 is in full flight. As business leaders, we’ve all committed to objectives and targets ranging from product introductions to revenue growth and cost management. We’ll have balanced scorecards, any number of reporting dashboards, and the ubiquitous spreadsheet telling us whether we’re on track to achieve our goals. But be careful. Many of those metrics are lagging indicators—a rearview mirror into what’s already happened. We need to have leading indicators that help us shape the future and lead to the outcome we want. Customer experience metrics do exactly that.

In an article published by Aberdeen Research titled “Customer Experience Strategy: Get it Right to Drive Success,” the authors summarise research about the culture, strategies, and metrics used by businesses to manage their CX strategies. The research divided companies into those with best-in-class CX strategies versus “other” and found clear differences on five key metrics.

CX Metric Best-in-class Other
Customer retention 85% 45%
YOY change in CX rate 37.4% -0.8%
YOY change in annual revenue 35.4% 7.7%
YOY improvement in response time to customer requests 32% 3.6%
YOY change in customer profit margin 18.2% 2.9%

 

 

 

 

 


These are excellent CX metrics to consider for improving the customer experience. Yet there still needs to be leading metrics that help us drive change. To identify those metrics, consider a framework that includes three core metrics:

  • Indicators of operational excellence and brand standards. In various time series analyses, Market Force has seen that execution on standards is a leading indicator of customer satisfaction metrics—which is a leading indicator of revenue.
  • Customer experience (CX) feedback, whether survey, contacts, social media, etc. These listening devices—and change in the volume and velocity of commentary—are exceptionally important. CX metrics are best when they can be traced to both channel (e.g., ecommerce or brick and mortar) and location.
  • Changes in patterns. Changes to the normal performance can be either positive or negative. Watch for shifts in the patterns of traffic, CX metrics, and brand standards execution. Changes in management, new competitors, new products, and acquisitions will impact customers. Watch for changes in the metrics during these event timings.

For more information about customer experience metrics, download our e-book or watch a video with Forrester’s Harley Manning and Market Force’s Cheryl Flink as they discuss research findings relating CX metrics to revenue. And if you’d like to discuss strategy, please feel free to schedule a briefing with us.

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As Chief Strategy Officer, Cheryl aligns Market Force's strategic direction with our clients' strategic objectives. She oversees the North American client base, Analytics and Insights, Winnipeg Operations and Marketing. She has a Ph.D. in social psychology and broad business experience in both private and public companies.​