- Specify actionable value CX drivers: In order to create more actionable insights, organizations need to understand and refine their Customer Experience (CX) program's value drivers.
- Establish the importance of each CX value driver: Using quantitative surveys, organizations can identify the significance of each value driver for the customer.
- Know the limits of the data: A CX program can't measure all factors impacting a customer's experience at all times.
Customer experience (CX) programs that have been running for several years are often in a Catch-22: the program has lost buy-in because it is not perceived to produce actionable insights; however, there is an understandable reluctance to change the methodology and lose trackability.
As a result, the CX program stalls — its long history becomes the main reason for its existence, rather than the impact it has on the organization.
Specify Actionable Value CX Drivers
Often, the cause of this problem is that the CX program’s value drivers are too general and don’t provide sufficient actionable direction — for instance, if the program tracks “cost of the product” or “quality of the website” in a survey. This may be enough information to identify where CX improvement is required, but it lacks insight on how to action change.
To address this problem, the organization should seek to understand its CX program’s value drivers, thereby making them more actionable; for instance, “ease of navigating the website” or “accessing the website on a mobile device.” This can be accomplished through qualitative insights, such as customer interviews and/or focus groups, that drill down into the specifics of each value driver.
Related Article: 20 Customer Experience Metrics Critical for Your Business
Establish the Importance of Each CX Value Driver
Quantitative surveys can then determine the significance of each value driver to a customer. This can be either absolute (e.g., rating importance from 1-10) or relative, using a trade-off technique, such as MaxDiff or zero-sum trade-offs.
While stated importance is useful, bear in mind the survey length: it can be onerous for customers to rate importance and satisfaction across all factors, and that can cause a drop-off in attention and completion.
Going beyond what customers tell you is important; latent value drivers use analytics to determine the importance of any given value driver without directly asking the respondent. This is useful as it reduces bias — when asked directly, customers may overstate the importance of certain factors for their own benefit (such as lower pricing) or misjudge their own decision-making process.
To assess the relationship between individual value drivers and a CX program’s core metrics, such as NPS or share of wallet, CX programs typically use linear regressions or correlation analyses. These analyses tell us how impactful a value driver is to overall CX, and therefore how much improvement is needed in any given area. By collating this information from all the most influential value drivers, organizations can prioritize key focus areas and set Key Performance Indicators (KPIs) with a reasonable expectation of what the impact will be on their overall CX.
Related Article: Skewed Metrics: How CX Leaders Should Rethink NPS, CSAT and CES
Know the Limits of the Data
No CX program can measure CX for all customers, at all times. The data provides a snapshot for some of the factors that make up why customers feel the way they do about a brand. Random events, changing relationships, misunderstandings, unusual situations, and feelings that are hard to quantify all play a role in how customers feel about a brand, yet still influence the decision-making process.
However, by using the analytical methods above, you can determine how much change each value driver brings to core metrics. This enables you to calculate the percentage share of the CX that is measured and accounted for by the CX program on an ongoing basis.
With this, we can identify blind spots, know how much of the CX is within an organization’s control, and ultimately, build a more effective long-running CX program that continues to effect change in the organization and have buy-in from senior management.
Learn how you can join our contributor community.