New Study Reveals Leading CX Measurement Strategies Are Moving Beyond NPS
Study by Harvard Business Review Analytic Services in association with Genesys highlights organisations relying on lagging indicators leave blind spots to loyalty loss scenarios, outlines path to clarity.
A new study released today from Harvard Business Review Analytic Services, in association with Genesys, a global cloud leader in customer experience orchestration, reveals the strategies of organisations setting the standard for customer experience (CX) measurement and understanding where loyalty is lost and won along the customer journey. These organisations demonstrate that a clear view into the moments that matter most to customers is now possible through a technology-enabled, people-centric measurement approach. Companies implementing this strategy will be better informed to take action to improve overall experiences and drive customer loyalty.
In contrast, companies stuck in a company-centric approach focused primarily on traditional metrics like Net Promoter Scores (NPS) will struggle to deliver great customer experiences and find themselves at a competitive disadvantage that could disrupt their success indefinitely.
For nearly two decades, NPS has been widely viewed as the defining metric for measuring customer experience. Yet, NPS and other measurements typically happen after a customer transaction, such as the close of a sale or at the end of a service call. And they mostly focus on the efficiency and effectiveness of the business, rather than the quality of the customer experience. This limits opportunities to understand nuances of a customer’s holistic experience, including their preferences, priorities and friction points.
According to the study, 81% of organisations believe being able to measure CX along key points of the customer journey is important to their organisation’s business strategy. Instead of relying on tools that provide limited visibility, leading organisations are turning to advances in data analytics and machine learning to measure earlier and throughout the customer journey — equipping them with insights needed to create more fluid experiences for customers.
“While NPS can provide a valuable snapshot into the customer experience, today’s technology provides opportunity for a deeper understanding of which aspects of an experience enhance or limit long-term relationships between customers and businesses,” said Peter Graf, Chief Strategy Officer at Genesys. “That’s why Genesys is pioneering new ways for organisations to understand what their customers are trying to tell them about their experiences through the data they leave along their entire journey. It is those insights that organisations can leverage to action the path to creating empathetic experiences that breed trust, loyalty and, ultimately, a competitive advantage.”
Technology and data analytics tools are quickly advancing measurement capabilities, enabling organisations to understand experiences at key moments in the journey. To access these valuable learnings, more organisations are adopting these tools; 54% of organisations are moving to digital technology to automate efforts to collect customer feedback over the past 18 months, according to the study.
Leaders in measuring CX are the most likely to use the newest technologies like predictive analytics and artificial intelligence (AI) to track metrics and identify actionable insights. And these strategies are paying off — 65% were more adept in linking CX metrics directly to business outcomes than those in the middle of the pack (29%) and laggards (8%). Technology’s ability to help companies identify pain points along the customer experience greatly expands the opportunity to make each experience more fluid while improving customer satisfaction and building loyalty.
Highlighted Study Findings:
- More robust measurement strategies are driving better customer experiences. Ninety-one percent of organisations using a wider range of metrics and technologies to measure the customer experience are driving better CX today than a few years ago. Only 39% of those with the most limited strategies and tools have seen similar results.
- The majority of organisations face unnecessary blind spots in the customer experience. Only 28% of organisations say they have a very good understanding of customer experience sentiment across all phases of the customer journey. Notably, a third responded to a lack of understanding of customer satisfaction in the critical pre-sale phase of the journey.
- Improving the customer experience is a priority and budgets are reflective. Sixty-five percent of executives included in the study shared that improving the customer experience is a high priority for their organisations; 58% of organisations are increasing budgets for CX measurement to drive better results.
- Organisations are slow to embrace AI and predictive analytics as measurement options. Despite advancements these technologies provide, such as detailed insights into employee-customer interactions, real-time sentiment analysis and insights into customer intent, they’ve yet to be widely adopted. More than 80% of organisations haven’t added these powerful technologies to their measurement toolkits, leaving vast opportunity undiscovered for driving desired business outcomes.
Please login with linkedin to comment
Customer ExperienceLatest News
TV Ratings (06/05/2024): Emotional Lego Masters Goodbye Does The Numbers For Nine
And we thought Lego could only make you cry when you accidentally stood on a piece.
Lisa Wilkinson AM To Join Cannes In Cairns As Keynote Speaker
Multi-Award Winning Journalist and TV Host Lisa Wilkinson AM to speak at Cannes in Cains, sponsored by Pinterest.
Mamamia Names Natalie Harvey As New CEO
Mamamia has today announces the appointment of Natalie Harvey as Chief Executive Officer.
‘The Media Has A Way To Go On Diversity’ – Diversity Council Leader Lisa Annese On Industry Diversity And Why Sunita Gloster Is An Important Addition To Their Board
Few are more qualified than a Gruen regular to knock adland and the media into shape on diversity.
Mike Shows Up At A Wake And Still Hasn’t Seen That Show, In Latest Instalment Of ‘I Saw It On Binge’, Via Thinkerbell
Why is it we pay for 19 SVOD accounts namely due to FOMO but then rarely bother to watch the shows anyway?
Flexiroam Partners With Specialist Agencies To Launch “Ready For Anything” Global Campaign
Do you return from overseas with Bali belly, a possible STI & a huge phone bill? FlexiRoam may help with the last one.
Samsung Unveils Power Of AI To ‘Upscale Every Moment’ With Neo QLED 8K
Got mates who brag about their 83-inch, 10K resolution, OLED screen TV? You're just as bored & baffled as all of us.
Media-Wize Wins AUSCERT PR Account
Media-Wize calls itself "a media training and technology and cyber security PR agency". Think nerds with better hair.
Snapchat Taps Gelato Messina In New Brand Campaign
B&T needs little tempting to scoff more Gelato Messina. Apart from having to go up a size.
Travel Insurer Trippi Draws Ire From The Brazilian Embassy Over Cheeky Brazilian Ad
There's a very fine line between "playful" and "utterly offensive". These ads are almost a dictionary definition of it.
Racing NSW Hits Tabcorp With Legal Action Over $6 Million Revenue Loss
Here's some horse racing news that thankfully doesn't require a silly hat or passing out in a nearby rose bush.
AI Tools Such As ChatGPT Leading To ‘Content Overwhelm’ Among Marketers
Study says tech leading to an avalanche of content for marketers. Not to mention having to read the instruction manuals.
Stake Appoints 72andSunny As It’s Creative Partner
72andSunny nabs Stake's creative. And by that we mean the investment platform, not the nemesis of all vampires.
61% Of Aussies Want Corporate Australia To Stay Away From Social & Political Issues Leo Burnett Study Finds
Do you love a study that appears to fly in the face of every study before it? Be mesmerised by these results from Leos.
Brendon Cook, OAM, Inducted into the OMA Hall of Fame
Other than Australia's typically pleasant weather, no one's done more for outdoor than the former oOH! boss.
New Campaign Highlighting Renewable Gas As A Crucial Component Of Energy Transition
It's hard not to make a renewable gas ad sound like a tedious Year 9 science lesson. So well done to the agency here.
Love Media Welcomes Alana Dowling As New Client Director
Seasoned media pro Alana Dowling joins the Love Media team. Clearly replacing someone who didn't love it
B&T 30 Under 30 – Where Are They Now? Until Recently, Prison!
A prestigious 30 Under 30 gong can get you headhunted, promoted or, in this instance, a two-year stint in the slammer.
“We Will Never Tell A Journalist What To Write” – Nine’s Aimie Rigas On How Data Is Shaping News
Data becoming the journalist's tool for more engaged content. Still not beating dodgy MAFS contestants or a Kardashian.
Beware The Bad Guy. Billie Eilish Fans Brace Themselves For Scammers
Thought getting Tay Tay tickets was an unimaginable nightmare? Read on as Billie Eilish promoters say hold my beer.
Twilio Names Chris Koehler As CMO
Chris Koehler named as Twilio's CMO. Which may prove a prickly tongue twister after a lengthy open bar tab.
ARN Announces Ad Sales Partnership With The Athletic
Can we slow the rotation of the sun? Because that's the only way we'll fit all these new podcasts into one day.
Burger Wars Continue As Hungry Jack’s Brings Back The Big Jack & Mega Jack
Hungry Jack's' Big Mac ripoff set to return after recent legal win. Still no one racing to clone the Filet-O-Fish.
Diverse Voices, Sustainable Choices: Natalie Dean-Weymark On Why Sustainability Is A Non-Negotiable
Here, Compass Studios' Natalie Dean-Weymark talks diversity in media. It's the human equivalent of the Family Assorted.
New Partnership Between The Sweetshop And The Gardening.Club
Thought you'd be getting tips on aphids & fungus gnats from this Gardening. Club news? Prove yourself totally wrong here.
‘A Very Rare Breed Of Creative’ – Clemenger BBDO hires Chief Creative Officer
B&T's chatting with Clems boss Dani Bassil on Adrián Flores CCO appointment. We never got to Italian or Thai herbs.
Concrete Playground Debuts Innovative Urban Exploration Platform With Lexus As Launch Partner
Concrete Playground announced the launch of its redesigned website in partnership with Lexus. This partnership introduces a new era of urban discovery, enabling a deeper, more intuitive engagement with cities through a state-of-the-art digital platform. Revolutionised Digital Experience Concrete Playground’s website has undergone a significant transformation, designed to enhance the way users interact with their […]
Mindshare And The Brand Agency Take Top April’s New Business Rankings
Which agencies soared like an eagle for the month of April? As in stellar performance, not Eddie the hapless ski jumper.
Suntory BOSS Coffee Fuels Ambition With New Campaign From It’s Friday
Does your workplace have a strict, policed illegal drug policy? Then Suntory BOSS Coffee will have to do.
Resolution Digital Wins MyPlates Media Account
The best thing about personalised number plates is it makes spotting wankers on the road far easier. And drug kingpins.
Debunking The “Three Year Lie”: A New Approach To Retail Digital Strategy
This columnist says it's wrong to claim digital always has a three-year pay off. Has no opinion on the seven-year itch.
TV Ratings (06/05/2024): The Farmer Is Back And He Wants A Wife
It was a good night for lovers of farming and love.
The Growth Distillery Unveils The New Rules Of Influence
The New Rules Of Influence has arrived. And there appears to be no "difficult second album" syndrome here.
Whittaker’s Launch New Brand Platform, ‘Hello Chocolate Lovers’ Via Bastion Shine
New Zealand chocolate brand continues its insidious march into the Aussie market. Much like New Zealanders themselves.
Tyro Shows They Are ‘Into Business Big Time’ With New Brand Campaign Via Howatson+Company
Think finance isn't funny? Think again with this fun work. Yes, it still applies to funeral homes & Clive Palmer ads.
IAB Study Finds 66% Of Advertisers Have Five Or Less Years Experience With Affiliate & Partnership Marketing
Study finds advertisers & agencies not overly experienced with affiliate marketing. The opposite to networking drinks.