Four Guiding Principles for CX Metrics with Meaning

CX metrics help us understand our company’s relative position, reinforce expectations and key behaviors in our teams, and quantify our level of impact and achievement.  Because of this, many program owners and stakeholders spend their time agonizing over what questions to ask of their customers. Though this is important, I would like to suggest that CX experts begin with a different approach, asking: What business outcome do we want to influence and why?

When it comes to metrics, the human race is a little obsessed. We measure our weight, height, IQ, wealth, and now our followers on social media. Those of us in customer experience (CX) take metrics even more seriously, and for good reason.

CX metrics help us understand our company’s relative position, reinforce expectations and key behaviors in our teams, and quantify our level of impact and achievement.  Because of this, many program owners and stakeholders spend their time agonizing over what questions to ask of their customers. Though this is important, I would like to suggest that CX experts begin with a different approach, asking: What business outcome do we want to influence and why?

It’s easy to get stuck on what your measuring. After all, it makes your CX program tangible, but when it comes down to it, you want your program to create real impact. That impact can only be shown with the right metrics.

You may be creating the first ever metric framework for your company or you may have historically tracked certain metrics, but have a feeling they just aren’t working for you any more. Either way, if you want to elevate your programs and practices, you’ve got to be deliberate about your metrics. How? Here are four guiding principles for choosing and implementing metrics with meaning:

Principle #1: Design with the End in Mind

It used to be that program owners would start their programs off by turning to each other and asking, “what have we always wanted to know about our customers?” The result was surveys populated with “best guess” questions that provided some information, but not much direction. This method causes a disconnect in the relationship between customer listening, CX improvement, and ROI understanding.

To avoid this confusion, it’s important to start at the end by defining what you want to achieve before you even start. What meaningful financial and intrinsic value can this program drive for your organization? The answer to this question should point you towards more specific metrics; choose the ones that are closely tied to your value proposition, customer promise, and are aligned with your strategy. If you start with your goals in mind, you’ll be able to make sure your metric framework will provide real meaning by helping further your greater goals as a company.

Principle #2: Give the People What They Want

This point may seem obvious for any industry, but it’s meaning requires a little more explanation when it comes to metrics. By this point, I mean that you need to be hypersensitive as to who your stakeholders are when you select metrics for your program. The three most common stakeholder groups I’ve seen in my experience are the company as a whole, it’s employees, and, of course, your customers.

Each of these groups will have specific sets of needs. When selecting metrics, you need to tailor your choices—and the messaging with which you deliver them— to align with the assets of the business and experience those groups most care about. For example: the metrics you choose for your company will align more with business results, whereas for your customers it will concern more of overall satisfaction or ease.

Principle #3: Quit Living in the Past

I like to follow up this third principle, “quit living in the past,” with “unless your boss says you have to.” When I say the past, I am referencing past data and practices. Most often people don’t want to mess with their historical data, so they’re afraid to ask questions in new ways or start new initiatives for fear that the data won’t match up. To them I say that if you allow yourself to be paralyzed by the politics of historical data, your program will never evolve and therefore will never improve.

The way forward is to have an honest conversation about metrics with meaning. In this conversation, you and your other stakeholders will find that your metrics have to change as your business changes. Otherwise, your metric framework will be out of context, therefore limiting the value of any insight gained from that framework. Living in the past is then the common culprit of flat metrics; whereas adapting, insightful metrics evolve with your business so they can inform and inspire real change.

Principle #4: There’s Value in a Good Story

Although metrics are vital for you program, it’s important to remember this Albert Einstein quote: “Not everything that counts can be counted.” Traditional scales, ratings, and numbers may only take you so far. The future of metrics lies in your ability to leverage unstructured feedback to shape what you will measure and why.  In other words, we can modernize the approach and use customer’s qualitative story about their experience to create metrics that matter.

In unstructured feedback, customers are already telling you what they care about most. At InMoment, we have developed a sentiment scoring algorithm that interprets the value of the customer experience based on what they write (or tell you via voice or video feedback) instead of just what they score. In a very compelling case study with an InMoment client, we found that our sentiment score trends exactly as NPS and OSAT scoring; and can even be used to predict scores, forward and back. How’s that for a game changing approach to metrics?!

When it comes to deciding on your metric framework, you have two choices: are you curious about your customer experience, or are you serious about using the right metrics to get the right intelligence for real business impact? I don’t know about you, but the decision seems pretty obvious to me. When you choose your metrics based on the value and meaning they present, you set yourself up for a CX program that will propel your organization into a future of success.

If you want to learn more about crafting metrics with meaning—including specific case studies and practical approaches—watch the full webinar, “CX Metrics: Choosing and Implementing the Right Ones for Your Business!” Click here to access!

What’s your biggest problem as a Product Dev professional? Too many demands and not enough time? Limited resources? Oddly enough, none of those topped the list for Hiten Shah’s crowd.

Hiten Shah (of KISSmetrics, Crazy Egg, and Quick Sprout fame) recently wrote in his newsletter that “the problems people have on Product teams fall into two main categories: Customer Feedback and Alignment.” This conclusion came after Hiten asked his readers to share their biggest product problems, and in more than 100 replies, those two themes emerged as the leaders.

Wootric helps customers gather, organize, categorize and analyze customer feedback – at volume – every day. And we’ve got a few insights into how Product teams can solve the issues that come with customer-centricity – while improving alignment at the same time.

Let’s go through the problems real Product professionals sent Hiten Shah point by point.

“Fast/Effective ways to quickly recap and synthesize qualitative research”

Qualitative data – ie. freeform responses versus ratings or multiple choice answers – are notoriously difficult to sift through and analyze. It’s only recently that, with advanced technology and machine learning, it’s become much easier to tag, sort, and assign sentiment to qualitative feedback at scale.

CXInsight™ Dashboard tagging segmentation screenshot
Source: CXInsight™ Dashboard

Tagging, in particular, is a huge time-saver when you switch from just manual tagging to auto-tagging. Tagging comments with their major themes is the first step towards conducting frequency analysis to identify trending topics – or find relevant feedback with a click.

Using an NPS survey with an open-ended comments section, for example, you might find that your ‘detractors’ (low scorers) comments tend to be tagged with “slow loading time” or you may see a specific feature request recurring.

Yep, modern customer feedback software should be able to deliver every comment with a feature request, for example, tagged and prioritized by frequency, from the highest-value customers, in about a second.

You can even use tags to route specifically tagged feedback straight to the appropriate department for follow-up. No need to hunt for bugs – the bugs will come to you! (Don’t they always?)

“It’s [customer feedback] very subjective and sometimes doesn’t have context, therefore I take it with a grain of salt, but engineers may not see it that way and want to address the feedback immediately.”

When your customer feedback comes primarily through surveys that *don’t* include open-ended responses (to gather all of that golden qualitative data), it’s impossible to get the context you need to evaluate the issue and possibly solve it.

But understanding the why behind NPS, CES and CSAT scores (to name a few) isn’t all the context you need to decide where to allot your time and resources.

You literally have to consider the source.

Is the feedback coming from a high-value, ideal client? Is your existing survey solution capable of identifying those markers?

Did you know that it’s even possible to target specific customer segments with survey campaigns?

And for even more context – you can target customer surveys based on product milestones. For example, you can set a CES survey to deploy after new feature use to find out how easy (or difficult) new customers think it is to use.

“Feedback overwhelm – how to prioritize what users want/need the most.”

An overwhelming number of customer comments can leave you feeling like you are trying to drink from a fire hydrant. It’s time to talk about the wonders of machine learning.

Historically, extracting insights from piles of unstructured feedback has been difficult, expensive and time-consuming. That is not the case today. When you need insight from feedback at scale, it is time to invest in text and sentiment analysis using software with natural language processing.

Machine learning has come a loooong way. Yes, algorithms must be trained to understand your company and customers, so chose a software vendor that will keep their team in the loop and ensure you’re getting good insights right off the bat. Then the software just gets better and better at telling you what is most important to your customers.

Feedback categorized by theme with sentiment breakdown
Source: Wootric CXInsight™ Dashboard

Wootric CXInsight™ combines natural language processing with sentiment analysis to categorize feedback based on what matters most for your customers. When you know why your customers love you — or don’t — prioritization becomes a much easier task.

“Having a regular cadence of customer interaction to develop insights and product intuition.”

Okay, there’s no excuse – this is so easily doable. You can set any CX survey you want to deploy on a regular basis, or, deploy after customers complete specific milestones. Having to go get customer feedback shouldn’t be something you have to think about. It should be automatic! Part of your daily, weekly, or monthly routine.

But, it’s only that easy if you’ve got software that makes it that easy – let’s be honest here. Modern customer feedback software can integrate with Slack, Intercom, or whatever you use, as well as deliver surveys to customers while they’re in your app, and deliver it to you tagged, sorted, and prioritized.

Regularly!

You can have your finger on the pulse of customer satisfaction and will know immediately if there’s any fluctuation. As an added bonus, give a pat on the back to whoever built an update or solution for customers so they can see the results in action!

“My main problem is to get to know our audience and talk directly to them.”

Surveys are great – we love them. But you know what? Even with a qualitative feedback field, a survey can’t take the place of a real, person-to-person conversation. And usually, the biggest barrier to having those conversations is making the time.

We can’t pick up the phone for you, but we can save you time. Enough time to schedule interviews with your customers and get even deeper insights that they may never tell you in writing.

“In Product we’re expected to be customer-centric. We’re supposed to get feedback and talk to customers all the time. It’s literally our day job. But that’s on top of making sure we’re focused on building the right things and helping our teams ship too.”

Here’s the thing, Product friends. You aren’t the only department that has to be “customer-centric” and talk to customers all the time and review steady streams of feedback. So to make this part of your job easier, you might have to reach out to other departments and make customer-centricity a multi-team effort.

If you have a Customer Success department, start there – you might find that the Customer Success Manager is your new BFF. They’re also talking to customers every day, and in many ways, they’re closer to the problems customers face than you are. Most CSMs would be delighted to build better relationships with their Product Dev departments, working together to answer the question “What can we do to help our customers achieve success?”

“It’s not easy and it isn’t getting easier. Customer feedback can come from anywhere: Customer support requests, live chats, social media, the sales team, customer reviews, competitor research, and more. Adding to the pile are the endless opinions about what to do with the feedback from people on our teams.”

It’s not easy – true. But it is getting easier to solve qualitative feedback issues with modern customer feedback software!

Sorry, we can’t help with the ‘too many cooks in the kitchen’ problem – that’s right up there with finding the cure for the common cold. We find that if you have to pick one source to guide product, NPS feedback is the going to be the most actionable.  That said, when it comes to gathering customer feedback from many sources into one, easily searchable place, modern technology comes to the rescue again.

What you want to look for is a customer feedback program that can pull all of customer comment sources together, like NPS or CSAT feedback, user interviews, support tickets, app store reviews, social and analyze those comments in a way that lets you see the big picture and slice & dice by theme, sentiment, survey date, and data source.

Tackle your unstructured, qualitative feedback with InMoment CXInsight™.

4 Areas to Perfect for a Mature CX Program

Every CX program is different.  Each company has a unique set of internal and external circumstances that require a customized action plan.  In order to create the right CX strategy, it is important to understand where you are and where you want to take your program.  From there, any program can take the right steps toward success.

In the world of customer experience (CX), your efforts can successfully differentiate you from your peers, but in order to achieve this, you need to focus on more than simply listening to customers and acting on that data.  A successful CX program requires continuous evolution and advancement to adapt to a company’s ever-changing landscape. When working with brands to optimize their CX programs we refer to this program evolution as CX Maturity.

Every CX program is different.  Each company has a unique set of internal and external circumstances that require a customized action plan.  In order to create the right CX strategy, it is important to understand where you are and where you want to take your program.  From there, any program can take the right steps toward success.

In order to figure out where your program stands in terms of CX strategy, alignment, and engagement, there are four major areas you need to consider for CX Maturity:

Cultural

The cultural aspect of CX Maturity refers to how well your organization is aligned with your CX vision, program, and its goals. An advanced program is well socialized and employees are familiar with the program.  They are invested, as the culture of the organization is customer-centric and puts the customer at the center of all decisions. There is also a well-established cross functional team, CX strategy, and employee engagement program.

Technological

A CX program that is technologically mature will have an advanced customer listening program that includes collecting, analyzing, and reporting capabilities.  This technology allows companies to transform the way they interact with customers, to start intelligent conversations, and to utilize direct, indirect, and inferred feedback.  It will incorporate AI, advanced data science, and cutting-edge features that transform simple metrics into meaning.

Analytical

Mature analytical programs incorporate customer and employee experience data as well as operational, CRM, segmentation, and other data sources to uncover real intelligence that impacts the business. Leveraging these data sources creates a holistic view of the company and enables you to get insights that siloed data cannot provide.  These programs also leverage Voice of Employee data to understand internal employee’s perspective on the customer experience. Mature programs are able to get to the bottom of customer issues, discover root cause, and act on customer intelligence.

Business Value

Last, but possibly most important, is the question of whether or not your program provides you with real business value. CustomerThink recently showed that less than one-third of CX professionals are seeing tangible results from their CX program.  A program that has reached full CX maturity will have a drawn out ROI framework, complete with a detailed plan for measuring success. CX metrics are tied to overall business objectives and the CX team is able to show ties to business outcomes. The value of the program is well known throughout the company.

When you are able to assess each of these individual areas of your organization, you can piece together a clear picture of the maturity of your CX program. After your assessment, you can then set goals, create a plan, and get on your way to evolving your CX program.

The sale of a product marks the beginning of a business relationship – a relationship that only becomes truly profitable through the service relationship that follows. Ideally, that relationship would last throughout the product and customer lifecycle. Dealer vehicle services, therefore, are not just something that you are obliged to offer customers after you sell them something: It is an essential part of a profitable, long term business model. Predictive maintenance (PdM) – as opposed to routine ex-post or preventive maintenance – offers companies the chance to fundamentally transform their service and business model. For that to happen, they must start seeing PdM not just as a means of collecting data, but as a vital tool for creating additional value in an active partnership with their customers. PdM combines the topics of service and digitization and opens significant new value pockets. But to turn this immense theoretical opportunity into solid reality, dealer service is obliged also to meet certain conditions. Above all, they need to understand that PdM, as a form of “Services 4.0,” is far more than just a question of routine oil change reminders.

Dealer service centers…at the center of the customer loyalty loop

There’s little question that, for the near future, all eyes will be on dealership service departments as the primary source of dealership profit. It’s about time! Service centers have been the primary profit producers for decades. But consistent service customer retention is the unit responsible for bringing those sold customers back for the next showroom sale. Thus the old saying that “sales sells the initial vehicle once, service sells the “all the rest” has never been truer.

The Evolution of the dealer Business Development Center (BDC)

In its day, the launch of the dealership Business Development Center marked a monumental change in the traditional retail auto sales model. Up until then, use of the telephone was left to the discretion of sales agents, who were trained and managed primarily to focus on face to face sales and the “now” transaction. The BDC marked the first formalized effort to improve on the phone skills that sales agents lacked. To be blunt…most dealer sales people are still ineffective on the phone.

When the BDC strategy spread coverage to the service center, that same focus on re-actively answering the phone, in the past was the norm. For far too many service center BDCs, that mindset is still in place today. Retail sales and service leadership speak positively about the importance of retention, but most of their efforts are still stuck in making the appointment for the “now” transaction. While autonomous vehicles and mobility seem to be the hot topic today, those realities are still years, if not decades away from the immediate needs of the day to day retail auto world.

“We are in the midst of seeing more change in the next five years than we’ve seen in the last 50 years.” Mary Barra, General Motors CEO

The connected car and predictive maintenance are the “next big thing”

Autonomous vehicles and mobility are still years off from attaining meaningful scale. Far less coverage is being dedicated to the “connected car”…with the promise of replacing mileage-based maintenance recommendations with predictive certainties. Vehicle telematics have the ability today to alert the owner of a potential breakdown ahead of the occurrence. I spoke to this opportunity in this Cafe post earlier this year. And I followed it up by this post signaling that today’s service center was not near ready to deliver those predictive alert.

So the technology part of predictive data delivery is available, but the delivery of those services at the dealer end is far from being in place. Dealer service BDCs are not equipped, both in the BDC agents’ capabilities and front line culture to deliver the interface to the end user customer.

Service BDC agents, like service center front lines, are still stuck in a reactive, “after” the breakdown culture

It’s hard to change the culture of any department in a dealership! But consider this: if service BDC agents are challenged simply to convince customers to make appointments for preventative, routine maintenance…won’t they be even more challenged to persuade customers to schedule service before a breakdown occurs? There’s a great deal of difference between scheduling inbound appointment calls and that of an outbound call attempting to convince a vehicle owner to schedule a service that will specifically prevent an impending malfunction before a breakdown occurs. Customers are inherently suspicious of dealer service preventative mileage recommendations…convincing them of predictive maintenance will be a new challenge altogether.

A new script and higher skill set for BDC agents

While service customers are familiar with mileage-based oil changes, they don’t always act in a timely manner to take action and bring the vehicle to the service center. Presently, BDC agents use repetitive calling to nudge customers to act. In other words, they focus more on reminder calls and less on persuasion skills to motivate the customer to act now.  But relying on a repetitive call model won’t be effective for the future of “predictive maintenance.” Service centers will have to either train or recruit to a higher agent skill level in the future. Repetitive “reminder calls” won’t convince customers to act on a maintenance service they don’t understand. Agents must be believably persuasive to a level not practiced today.

And scripting will undergo dramatic changes as well. Repetitive “friendly reminder” calls will not be effective for owners who cannot visualize the benefit of a service that will specifically eliminate breakdowns before they occur.  That call messaging will center on the agent’s ability to connecting with the “feelings” of the vehicle owner.

Service BDCs evolve from “cost/expense” to the “revenue/profit”

Most dealers are still using an antiquated P & L strategy, where sales receive all of the credit (and marketing budget) for the first sale, but for repeat sales as well.  However, a high percentage of those repeat sales are the result of the positive customer experience delivered by the service center.  Past customers usually don’t return for the next vehicle purchase if their service experience was unacceptable.

As customer experience manager for a large GM dealer, I was included in the weekly marketing meeting where tens of thousands of dollars were spent every month for attaining new customers.  However, in all of those meetings, I never heard one mention of allocating any of those ad dollars to the service department for “retaining” repeat vehicle purchases.

Hopefully, the successes achieved with predictive maintenance will clarify even more that sales sells the first vehicle…and the positive experience delivered by the service center sells the rest.

 

I think in almost every industry, there is a sense of nostalgia for how things “used to be done.” I say “almost” because I know that for the customer experience (CX) industry, the way things used to be done brings one thing to mind: simple, single point customer surveys.

It’s an ugly truth, but surveys used to be the go-to method—or even the only method—for anyone looking to gather customer data. It may have worked at the time, but thankfully, we know better today.

The fact is that the modern customer doesn’t want to answer questions about what they bought and where they bought it. (After all, with all the technology available today, we should already have that information from transactional data.) Customers also don’t want to spend large amounts of their valuable time going through pages and pages of questions when they only wanted to comment on their experience.

So if the old methods aren’t creating a great feedback experience for your customers, what will work? Today, the key to creating a survey that will actually improve the customer experience is a simple shift in mindset:

Stop interrogating. Start conversations.

Whenever I think of interrogation, I think of the cliche police scene where a suspect is sitting at a table beneath a harsh spotlight while a serious looking detective drills them about what they already suspect the person has done.

There are a couple of things wrong with this interrogation picture when you apply it to customer experience. Firstly, you should never make your customer feel like they’re in the hot seat by firing question after question at them. Second, you should never ask a question that you already have the answer to. Third, interrogating the customer is not focusing on their experience, it’s focusing on what you want to know. Essentially, when your surveys feel like interrogations, they aren’t improving the customer experience. They’re taking away from it.

When you focus on starting a conversational survey, the picture completely changes because of one major fact: conversations are customer-focused. They are mindful of the customer’s time and don’t ask too many questions (they definitely don’t ask unnecessary questions.) Most importantly, they focus on what the customer wants, not what they want to get out of the customer.

So before you set out to create your next survey, think to yourself: Am I interrogating or am I starting a conversation?

Looking for a better way to ask? Check out our first of it’s kind Digital Intercept tool that helps you enhance your customers’ online experience—without interrupting it. Check out the free Digital Intercept eBook!

If you follow the InMoment blog, you know that we believe loyalty is the end all be all of customer experience efforts. If customers are loyal to your brand, it means they spend money with you, interact with you, and give you feedback—even better, they do so consistently. This means plenty of benefits for your organization, but it also requires quite a bit of consistency on your part.

A consistent experience is widely recognized as one of the major contributors to overall customer loyalty. Take it from Footlocker’s Director of Customer Experience Tyler Saxey, who had this to say on the subject: “That’s how you drive loyalty the most in my perspective: value and consistency. Think about Amazon. You are almost shocked if your product doesn’t arrive in 2 days, and you are willing to give them a break if it happens. If you consistently succeed, you will drive revenue. If you consistently fail, people will find other places to spend their money.”

To break it down even more, memorable experiences that happen consistently lead to loyalty, which increases a customer’s lifetime value, which increases revenue. Sounds pretty straightforward, right?

In order to get to the benefits, however, it’s vital to understand why a uniform brand experience means so much to your customers. Here are three reasons why consistency drives loyalty:

Consistency makes you reliable.

This might sound a little weird, but stick with me here. Think about your favorite comfort food. There’s a reason why that mac and cheese, fried chicken, or pizza is more than just a dish you like. The difference between it and any old salad is that your comfort food elicits an emotional response. No matter where you are in life, you can rely on that simple meal to give you a sense of comfort.

In the same way, a customer should be able to rely on you to create a certain feeling for them. Maybe they’re excited because they know you will always ship their purchases quickly or that when they call you, they’ll be met with a happy and helpful representative. No matter what, that dependability gives your customer a sense of confidence and trust because they know you can be relied upon. If they can rely upon you to deliver every time, they’ll keep coming back for more.

Consistency makes you recognizable.

In today’s crowded market, everyone is looking for a way to stand out. Everywhere you look there are new, more interesting ways that brands are marketing or re-branding themselves to differentiate from the competition.

I would like to suggest that one of the best ways to stand out is consistency. By keeping your color schemes, messaging, product presentation, and any other detail uniform across your organization, your brand will be instantly recognizable to customers. Whenever they have a need for a product or service in your industry, they will automatically think of you if you keep it consistent.

Consistency makes you a part of their lifestyle.

Because you are a consistency rockstar, customers now think of you whenever they think of the industry you’re in. Because of that simple association, whenever they need a new pair of shoes, a new car, or a vacation, they will automatically google your brand first. If they’ve bought from you before and had a great experience, they are likely to come back the next time they’re in the market for your services.

Take Starbucks as an example. I bet you can think of at least one person in your life that is a “Starbucks person.” Whenever they’re out and about and in need of coffee, they pop right over to the nearest drive thru. This is because their experience with the coffee giant has been so consistent that they don’t even need to think of where to go when they need caffeine. The brand has become so embedded in their lifestyle that the customer is guaranteed to be a regular.

If you look at it from this perspective, consistency really is key to driving customer loyalty. It helps customers form emotional attachments and automatic associations with your brand, as well as making brand a part of their routine as a consumer. In short, consistency helps you create a solid relationship with customers, and that’s a pretty big win for your customer experience and your bottom line.

Looking to become a consistency rockstar? InMoment’s CX Intelligence Cloud empowers you to identify customer pain points both on a larger scale and at a location level. To learn how this solution can be tailored to your brand, schedule a demo with one of our CX strategists today!

You’ll never see a dealership Google image that isn’t like the one above—a smiling couple, seemingly happy with their experience of buying a vehicle. But are car buyers really that happy with the sales experience they receive, or happy to have it behind them?

Are they still smiling with the dealership experience after the initial sell? Did the sales staff properly introduce them to the next phase of their dealership customer journey, the service center? Was their “service experience” with free maintenance and warranty work after, well delivered? Did the follow-up experience after the sale consist of the typical, but dated, dealership follow up email of “congratulations” and maybe even a birthday card before they were receiving “pitches” for their next vehicle purchase?

Ask most any dealer principal or general manager and they’ll tell you that customer retention is front and center on their list of priorities. But with many dealers, when you measure the dollars formally allocated towards customer retention, those numbers are usually nowhere to be found.

Where are the Customer Experience Dollars?

As Customer Experience Manager for a large automotive dealer, I was fortunate enough to be invited to weekly advertising meetings between our leadership and ad agency. The purpose was to discuss what worked, what didn’t work and what was ahead.

But never, in all those weekly meetings, over almost three years of attending, did I ever witness one discussion about retaining past customers. There was time spent discussing community events, but no time spent on a formalized strategy for retention.

What was discussed? Facebook, YouTube, Snapchat, Pandora, Instagram, television, radio, on-site remotes, and even newspaper to the tune of tens of thousands of dollars spent each month on “getting them” and not one formal dollar designated for “keeping them”.

It is assumed in far too many dealerships that a respectable majority of past buyers will return because of the warranty or the free first maintenance offered by the manufacture. But after that, at roughly three years for leases and five to seven years for vehicle purchases, research reveals they begin to go elsewhere for service, mainly to an independent repair shop or franchise.

The Typical Dealership Sales Model

Typical dealership purchase funnel

The sales funnel has been used in retail auto for decades, but where is the “retention” part of the model? Many dealers would answer that they have their have their own rewards program for retention, but is it a rewards program that provides surprise and delight on a continual basis? Or like most dealer rewards programs that only apply discounts on products and services? What’s surprising and delightful about that?! Will that be enough reason for the client to return if the previous sales or service was poor?

Candidly, most dealer “experiences” are transactional. And when the showroom sale is completed, and the vehicle is delivered to the customer, most of the focus is on the next prospect (new prospect generated by ad dollars). Dealership retention efforts are mainly focused on the experience of buying and servicing the car, but will that top-of-mind awareness remain in the vehicle owner’s mind three years later when the lease is up? Will it trigger an initial contact with that car buyer to return to that same store five to seven years later when the vehicle owner starts a new car search?

The Loyalty Loop: an inclusive model for sales and retention

The Loyalty Loop

Photo Credit:McKinsey

Where is “the funnel” for client retention? Where is a formalized model for dealer retention of past customers? The Loyalty Loop was developed by Mckinsey and Company, a top consulting company used by many of the country’s top companies. But look how it focuses on a loyalty loop inside the traditional sales model. That inside loop consists of what the customer experiences with the dealer between car purchases.

While rewards programs are better than nothing, those rewards are not what I would call surprise and delight. They also offer discounts that involve coming to the dealership. Even though we know that vehicle owners are usually not surprised and delighted to return to the dealer for most anything.

Here’s an example of surprise and delight. Some dealers give FREE car washes as a retention tool.  All the owner needs to do is come to the service lane to redeem it. But most customers don’t want to come to the dealer for anything. How about this, give them a free “mobile” car wash.  Now that’s surprise and delight!

The Ownership Retention Gap

Consider these NADA statistics with respect to the retention of previously sold customers:

  • Dealers spent an average of $7.00 on retaining their already sold customers (2017)
  • Luxury dealers spent an average of $762.00 on each vehicle sold, non-luxury spent $670.00 (2017)
  • Average gross on referral vehicle sales was $1,200.00 vs $817.00 for fresh “ups”
  • Referrals have a 51% service usage vs 29% for fresh ups
  • Referrals have a 96% CSI score vs 73% for fresh ups

What’s is wrong with this picture? Far too many dealerships are ignoring their past customers who would be more loyal, produce more gross per vehicle, send referrals, deliver higher CSI scores and use their dealer service center more often than “newsuspects” who consume most all of the monthly ad budget for dealers.

We’ll expand on this topic in our next post.

CX Strategy: 5 Ways to Develop CX-Centric DNA

Becoming customer-centric doesn’t just happen. It begins with a vision which, over time, becomes a fully-immersive reason for and way of doing business. It’s more than an initiative—it’s a business discipline—a way of life within a brand.

Becoming customer-centric doesn’t just happen. It begins with a vision which, over time, becomes a fully-immersive reason for and way of doing business. It’s more than an initiative—it’s a business discipline—a way of life within a brand. Here are five key areas that serve as building blocks for infusing customer centricity into your brand.

Vision: A vision is not simply a mission statement; it should specifically tie to your brand’s promise and guiding values. It should be clearly defined and communicated to employees and understood—and expected—by customers. When you have a clear vision, you’re more likely to follow through, and more importantly, you’re motivated to improve.

Executive Commitment: In an ideal world, customer-centric culture and business practices begin at the top. In fact, researchers and analysts believe that if the CEO is not leading the CX conversation, then a company will never become a CX leader and reap the related benefits. CX professionals need to build a compelling business case that supports executive goals so that the relationship between CX success and the bottom line is evident.

People: Once you define your vision, it must be infused across hiring, training, coaching, and professional development to build and nurture a customer-centric culture for the long run. Your vision should help define the specific behaviors and traits of employees required to deliver on the brand promise. This means shifting hiring practices from a skill-based to a personality-fit mindset so you can hire within the scope of your company’s customer experience vision.

Environment: Maintaining a customer-centered company takes a comprehensive commitment, and incentives that match those objectives. Find ways to recognize people for upholding the brand’s promise and reward those who continually strive to improve the customer experience. Also, design KPIs, track net promoter score, and establish communication and recognition programs to reinforce the message that you both hear and heed employee contributions.

Communication: A vision is only effective as the way it is communicated throughout the organization, and to the world. Internally, discuss expectations, listen to the voice of the customer, list challenges, and recognize successes constantly.. There must be continuous follow up and clear, consistent communication to all employees. Externally, publicly state and provide updates to investors, analysts, media, and other external stakeholders regarding CX efforts and their impact on the business. This not only brings you credit where it’s due and ensures future accountability, but helps attract the right kind of employees—and customers—to your business.

Cultivating CX-centric DNA is not only essential to creating lasting relationships with your customers, but it is also a foundational pillar for a successful CX Strategy.

4 Ways AI can Empower Contact Center Agents

Contact center leaders have agonized over the decision of whether or not to utilize artificial intelligence (AI) over the traditional human approach to customer experience (CX) since the introduction of this innovative tech. However, in a recent CustomerThink webinar, I proposed that it isn’t an either/or choice between AI and agent; instead, I believe it is vital to think of AI as an enabler for customer experience, not a replacement.

Contact center leaders have agonized over the decision of whether or not to utilize artificial intelligence (AI) over the traditional human approach to customer experience (CX) since the introduction of this innovative tech. However, in a recent CustomerThink webinar, I proposed that it isn’t an either/or choice between AI and agent; instead, I believe it is vital to think of AI as an enabler for customer experience, not a replacement.

My segment of the webinar was called “Harness AI to Grow High-Value Human Relationships.” In it, I explained that AI especially enables the core of CX—the human element—and makes the relationships that result from human interactions more effective by arming contact center leaders and agents with the information and feedback they need to make a positive impact.

Sounds pretty great, right? If it does, you’re probably asking how you can use AI in your contact center to get these results. Well, here are four specific ways artificial intelligence can empower contact center agents to improve the customer experience:

Execute Real-Time Solutions

AI-powered humans essentially have information about their customer at their fingertips. With each call, AI can help decode customer thoughts, sentiments, and opinions about the interaction with the call center agent. After analysis, AI then can store all of this data specific to each agent and mine it for trends and other insights. The difference? Each call center agent gets personalized feedback on exactly what they did right and what they can do better in specific interactions with their customer. Even better, the “customer coaching” is feedback they get is based on recent interactions and is ongoing, so they can constantly improve in real time.

Create Personal Interactions

When contact center agents are powered by AI, they get the personal feedback that allows them to better relate with their customers. Customers themselves have said that when their contact center agents have access to AI generated information—such as information on previous interactions, interaction preferences, or insights from speech analysis—their interactions are more personal and relevant. Simply having the knowledge that a customer is frustrated allows agents to respond in a human, compassionate way and therefore create a relationship with that customer.  

Get Specific

We have also found that having access to AI-generated data helps agents to have better recall. They can more accurately remember recent conversations or feedback so they can take an informed approach when solving customer problems. Agents also get a sense of expertise when it comes to recurring customer situations because they know they have been there before and have the feedback data to determine the best approach.

Gain Proof of Accomplishment

Here’s a not so pleasant truth: before AI, coaching for agents had a negative bias. It was constantly looking for a chink in the armor when it came to an agent’s approach. While I agree that it is important for agents to constantly improve, it can be hard for them to do so if they feel like they’re constantly doing something wrong. Contrary to the negativity, we find that 80% of feedback is positive, so it is best to acknowledge that good in order to empower contact center agents. AI can help agents see what they’re doing well and gain a sense of ownership over their feedback. This gives them the motivation they need to take that other 20% and turn the negatives to positives.

Ultimately, AI helps contact center agents become an active participant in customer interactions (rather than a victim), have more control over their individual coaching, and feel more empowered to improve. When their work has obvious meaning, agents can appreciate their impact on other humans and create loyalty-driving relationships everyday.

This guest post was written by Martin Ceisel, the lead Content Strategist at MindTouch. His hobbies include writing, writing, and writing some more. MindTouch is a self-service platform that helps companies improve support agent productivity, increase ticket deflection, and fuel self-service support.

A quick look at some Net Promoter Score benchmarks will quickly reveal a painful truth: bad NPS scores happen. It’s inevitable.NPS Calculation

The worst response to your company’s detractors, though, is no response at all. So, how to best learn from bad Net Promoter Scores and use them to improve the customer experience?

Here are a few strategies to consider:

Do your research

Look at all of the support tickets your detractor customer has put in and read all the notes that your agents have written about these interactions. Review the goals they had when they initially became a customer. Check which help articles they may have read. This will give you important context when you close the loop with the customer.

Respond promptly and personally

Though the customers behind bad Net Promoter Scores might still be feeling the sting of their negative experience, receiving a prompt response to their NPS survey might help turn the tide. If nothing else, a personal response is an opportunity to take the NPS survey beyond a transactional call and response to an ongoing (and honest!) conversation. You’ll be surprised how much constructive feedback a simple “What can we do to improve your experience?” might unlock.

Segment response types

What customer group or business segment is driving the bulk of your bad Net Promoter Scores? One way to find out is to segment NPS scores to identify hotspots. You might find that a particular point in the customer journey, such as onboarding or renewal, is creating an inordinate number of detractors. Or maybe your NPS from product A is higher or lower than product B. Ask yourself why one group of customers is more successful than others. By categorizing responses, you can drill down and identify actionable takeaways. One way to see themes is to create reason codes, a method of categorizing responses so they can be organized and analyzed.

Don’t get tunnel vision

Remember that NPS is just one measure of customer sentiment. Don’t forget key metrics like customer effort (CES) and customer satisfaction score (CSAT). These, too, are important metrics that can lead you to the root cause of negative customer experiences. Regarding NPS specifically, consider trends in your industry. What are the NPS benchmarks you should be aiming for? This will help you decide how urgent an action to take—which bad Net Promoter Scores to prioritize first.

Because it’s about the whole customer experience

Tunnel vision makes for a good segue to my close: remember the reason we pay such close attention to customer sentiment. Perusing, parsing, and responding to bad Net Promoter Scores is about more than improving your company’s own internal metrics. It’s about improving the customer experience. If we can’t deliver low-effort customer experiences throughout the customer journey—if we don’t demonstrate a commitment to reading and responding to what our customers are telling us—we risk losing those customers entirely.

Make follow up on Net Promoter Score feedback convenient with InMoment’s many integrations.

You often hear of the positive power of a smile.  A recent business trip brought this to light to me, as well as the negative power that is portrayed when it is missing.  My colleague and I were on our way to see a client and we decided to stop and get a coffee. The first coffee shop we came upon is a nationally well-known one, and especially here in New England—and even especially more in Quincy, MA.  It was a long drive and we still had a way to go.  We were really looking forward to a nice coffee and having optimistic discussions about our upcoming meeting.

As we approached the counter, we were ignored for about minute while several employees chatted a bit amongst themselves.  Of course, one minute can feel like ten when you are standing there awkwardly waiting for someone to acknowledge your presence.  However, we patiently waited until the representative made eye contact with us.  With no smile or greeting whatsoever, and with a clearly visible “I hate my job” look and tone, she said to us “What would you like?” We ordered, and once we got back to the car with our coffees, both looked at each other and at the very same time said “Wow!”.  We could not believe the lack of customer service and left there feeling like we were a bother and not wanted.  Why would we ever go back there?  The answer is we wouldn’t, and we won’t.  While the coffee was decent, the service certainly wasn’t.

As we reached our destination, we again stopped for another coffee, this time at another equally and nationally well-known coffee shop.  That experience was the complete opposite.  We were greeted with a smile, asked how our day was going, and how they could help us.  We felt acknowledged, invited, appreciated, and left feeling quite pleased and positive.

This experience reminded me of a great article I read a few years back called, “4 Reasons Why Excellent Customer Service Should Start with a Smile,” by Kaan Turnali in Digitalist Magazine. In the article, Kann explains that what’s often missing is a smile, a key element of customer service and business interactions.

Here are four reasons why excellent customer service should start with a smile:

A Smile is More Than an Expression

Smiling isn’t just something your face does. It communicates your state of mind. A smile—or the nonvisual sense of a smile for telephone customer service representatives—can be the most significant part of a business transaction. In retail, it can influence people’s perception of a brand and their customer satisfaction.

It can enhance the exchange of a product, the sharing of knowledge, or the offer of a solution As Internet and mobile commerce take market share from traditional brick-and-mortar businesses, smiling as a state of mind is more important than ever.

A Smile is More About a Mindset

Smiling is as much a reflection of an organization as it is a validation of that organization’s promise. It helps form the customer’s first impression, an indication of a pledge to offer a satisfactory product or service. It plays a role in everything we do, in every transaction we touch, in our relationship with every customer we help. It starts before we first interact with our customers, and it certainly does not end when the transaction is complete.

A Smile is an Attitude

Smiling tells our story beyond first impressions. It is a personal touch that extends our customer service promise and reflects our passion. Smiling says that we want to be here serving our clients and customers. It says that we are ready and willing to go the extra mile. And we smile even when we are not face-to-face with clients or customers. Our tone of voice on the phone and style of our correspondence communicate a virtual smile—or the lack thereof.

We cannot control everything that unfolds during customer interactions, but we always control the attitude we convey, such as amiability, energy and excitement, as well as commitment to satisfying the customer’s wants or needs. Even though a smile can’t solve every problem, in many cases, our attitude can triumph over many complications that can occur during the transaction and our smile can become a competitive edge.

Most Important: A Smile is an Invitation

Smiling sets a tone. It establishes a rapport and initiates trust, the cornerstone of every business relationship. This last point is more relevant than ever as we struggle to retain that integral factor in our fast-paced, smartphone-addicted, multitask-driven culture. Technological advances, globalization and new business models have us spending more time working remotely on our devices, which also makes us more remote.

Bottom line: Whether the transaction is business-to-business (B2B) or business-to-consumer (B2C), a smile is one of the easiest components to get right. Omitting smiles from the equation leaves out the crucial ingredient in any business interaction.

So, as we learned from the experiences I shared above, it takes more than a good cup of coffee to keep customers coming back.  Good service is just as important as a good product, and it all should begin with a smile.

 

Certified Customer Experience Professional (CCXP) Joe Camirand along with HorizonCX, LLC aims to improve operational and financial results for small and medium-sized businesses through Voice of the Customer (VoC) strategies.  Learn more at www.horizoncx.com

3 Ways Voice Can Take Your Feedback to the Next Level

Of all the technologies to be excited about, voice feedback is definitely toward the top of the list. With the ability to provide better data and a more convenient, technologically advanced way to interact with customers, it has the ability to revolutionize the way you collect feedback and the quality of that feedback.

At InMoment, we believe that interacting or listening to your customer shouldn’t just take place at a single point; we believe that you should be listening to your customer whenever, wherever, and however they reach out to you. Because this is such a core belief of ours, we are always looking for new, valuable, and relevant ways for you to collect feedback.

In the recent history of customer experience (CX), speech-to-text has been a favorite talking point when it comes to giving your customers options. Speech-to-text is also known as automated speech transcription, or technology that automatically recognizes digitized speech wavelengths and then converts that speech to text. While this tech is great for translating comments that can then be run through text analytics, there’s a new player on the scene of CX feedback.

Voice feedback takes speech-to-text a level deeper, using AI to analyze a recording of a customer’s actual speech—and all of the detail that comes along with it. Also known as speech analysis, this technology is able to recognize customer tone, pitch, and volume to determine customer sentiment and emotion.

Essentially, voice feedback takes traditional text and speech-to-text feedback to the next level. Need more reasons why? Here are three specific ways that voice can enhance your CX feedback!

Emotional Context

There’s a reason why you shouldn’t have high-stakes or emotional conversations via text message: there are some things that just don’t translate in a text. The closest you can get to a change in tone is using ALL CAPS, and we all know that just makes it seem like you’re yelling at someone. When you analyze voice feedback, you aren’t missing out on those emotional indicators like tone, pitch, and volume. This gives a customer’s words emotional context, which in turn gives you much more data on how that customer is actually feeling (and as we all know, richer data means richer intelligence).

Convenient for Customers

Your customers are busy people, so it’s best that you give them feedback opportunities that fit easily into their daily routines. Traditional text or even speech-to-text is much more time consuming, requiring customers to type in or speak slowly and clearly in order for their comment to be translated correctly. Voice feedback gives them the ability to multitask and be completely hands-free when giving feedback. For instance, if you are using voice in a post-service survey at an auto shop, your customer can leave you feedback on their drive home. It’s quick, convenient, and doesn’t require your customer to set aside time to complete a survey.

Stay Current

Voice feedback is also compatible with the technological must-haves of today: voice assistants. To give you an idea of how many people will be able to leave you feedback via the Amazon’s Alexa, Apple’s Siri, Google Now, and Microsoft’s Cortana, here are some stats:

From these numbers, it’s clear that voice assistants are becoming a staple in your customers’ households. By equipping your CX program with voice analytic capabilities, you are giving your customers an opportunity to interact with you using a device that consumers are clearly excited about. Even better, they can leave you feedback handsfree and from their living room.

Of all the technologies to be excited about, voice feedback is definitely toward the top of the list. With the ability to provide better data and a more convenient, technologically advanced way to interact with customers, it has the ability to revolutionize the way you collect feedback and the quality of that feedback. Sounds pretty good, doesn’t it?

To learn more about the technology that can help you interact with your customers whenever, wherever, and however, schedule a demo with an InMoment CX Strategist today!

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