Customer Experience Best Practice Areas
Posted by Jeffrey Henning on Thu, Aug 20, 2009
- Employee-Customer Engagement – the extent to which customer input is shared with customer-facing employees and how that input is used to modify employee behavior
- Co-Creation - how organizations engage their customers in providing formal input on products and services and the extent to which they collaborate with customers in jointly creating products and services that best meet customer needs
- Strategic Commitment - the level of commitment an organization has to measuring the customer’s experience and listening to the Voice of the Customer
- Customer Relationship Management – the extent to which organizations use CRM data in their feedback efforts
- Feedback Management – how organizations gather, measure and track customer feedback and the metrics associated with this feedback
- Voice of the Customer – the extent to which the organization gathers, uses and shares VOC data within the entire organization
We then correlated each best practice against a loyalty index comprised of an average of these four customer-loyalty metrics:
Not surprisingly, the traditional loyalty measure, willingness to repurchase, had the highest correlation to the overall index. Nor is it surprising, given the recession, that increasing purchase amount had the lowest correlation to the index and the lowest level of strong agreement, with just 5.2% of respondents strongly agreeing.
Here, then, are the correlations against the six practice areas:
Each practice area had a strong correlation to loyalty. Interestingly, customer relationship management, despite its maturity, remains difficult for most organizations to implement well: only 6.0% of respondents strongly agreed that their organization followed the four CRM/CE best practices. Surprisingly to us, the highest level agreement was for a
strategic, executive-level commitment to Customer Experience Management, with strong agreement of 18.1%.
In future posts, Brian Koma and I will look in detail at each CE practice area and how they distinguish organizations with highly loyal customers from those without.
Update (12/30/09) - Links to posts on each practice area: