Several questions came in on the ability of surveys to predict actual behavior, covered in the post Measuring the $$ Value of Customer Experience (see 2. Data with Surveys). My advice is this: if you are interested in taking action on survey results, make sure to survey specific visitors / people with known behavior if possible, then track subjects over time to see if there is a linkage between survey response and actual behavior. You should do this at least the first time out for any new type of survey you launch.
Why? Many times, you will find segments don’t behave as they say they will. In fact, I have seen quite a few cases where people do the opposite of what was implied from the survey. This happens particularly frequently with best customers – the specific people you most want to please with modifications to product or process. So this is important stuff.
You’ve Got Data!
Turns out there’s a new academic (meaning no ax to grind) research study out addressing this area, and it’s especially interesting because the topic of study is ability of customer feedback metrics to predict customer retention. You know, Net Promoter Score, Customer Effort Score and so forth, as well as standard customer satisfaction efforts like top-2-box.
The authors find the ability of any of one of these metrics to predict customer retention varies dramatically by industry. In other words, you might want to verify the approach / metric you are using by tying survey response to actual retention behavior over time.
Continue reading Do NPS / CES Feedback Metrics Predict Retention? Depends…
The following is from the May 2010 Drilling Down Newsletter. Got a question about Customer Measurement, Management, Valuation, Retention, Loyalty, Defection? Just ask your question. Also, feel free to leave a comment and I’ll reply.
Want to see the answers to previous questions? Here’s the blog archive; the pre-blog newsletter archives are here.
Q: I visited your website because I am trying to understand how to develop a customer LifeTime Value model for the company that I work at. The reason is we are looking at LTV as a way to standardize the ROI measurement of different customer programs.
Not all of these programs are Marketing, some are Service, and some could be considered “Operations”. But they all touch the customer, so we were thinking changes in customer value might be a common way to measure and compare the success of these programs.
A: Absolutely! I just answered a question very much like this the other day, it’s great that people are becoming interested in customer value as the cross-enterprise common denominator for understanding success in any customer program!
If I am the CEO, I control dollars I can invest. How do I decide where budget is best invested if every silo uses different metrics to prove success? And even worse, different metrics for success within the same silo?
By establishing changes in customer value as the platform for all customer-related programs to be measured against, everyone is on an equal footing and can “fight” fairly for their share of the budget (or testing?) pie. By using controlled testing, customers can be exposed to different treatments and lift in value can be compared on an apples to apples basis – even if you are comparing the effect of a Marketing Campaign to changes in the Service Center.
Continue reading LTV, RFM, LifeCycles – the Framework
On the heels of the Desirability Series we have two related articles:
1. This first piece is by Lester Wunderman, one of the “fathers” of Direct Marketing (so many fathers, so little time). To me, it’s significant Mr. Wunderman would feel the need to come out and provide us with his definition of Engagement, at least as it relates to Advertising. If he didn’t see Engagement as an important idea thrashing around looking for clarity, why bother?
His statements are necessarily broad I think, because he’s coming at it from the top level, the Strategic Layer, and in doing so has to cover a very wide range of industries and media. Nonetheless, if you take the time to really read what he’s saying and think about it, he’s setting up a new kind of approach to Advertising similar to what I defined here.
Here’s the article link:
Engagement — A New Information-Based Form of Advertising
2. In contrast, I’m not sure whether Roy Young is the “father” of anything but he is the President of MarketingProfs.com and coauthor of Marketing Champions: Practical Strategies for Improving Marketing’s Power, Influence and Business Impact – something I talk about a lot.
His topic? Silo Busting, which is so critical to really driving a customer-centric Strategy. Roy provides 5 solid tips on how to get started if you want to Take Action on Desirability.
Here’s the article link:
Five Tactics for Busting Silos in Your Company