Customer service strategy & CES as a metric to measure loyalty
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Customer service strategy & CES as a metric to measure
loyalty
How often does companies patronize a company specifically because of its over-the-top service?
How often do consumers cut companies loose because of terrible service?
Companies punish bad service more than they reward delightful
service.
3 year period
75,000 B2C and B2B customers
Dozens of industries
North America Europe South Africa AustraliaNew Zealand
According to conventional wisdom, customers are more loyal to firms that go above and beyond.
Exceeding customers’ expectations during service interactions makes customers only marginally more loyal than simply meeting their needs.
89% of Customer service managers say that their main strategy is to exceed expectations.
84% of customers say their expectations had
not been exceeded during their most recent
interaction.
“There is only little relationship between satisfaction and loyalty.”
Fred Reichheld
20% of the satisfied customers say they intent to leave the
company.
28% of the dissatisfied customers intent to
stay.
Loyalty Disloyalty
Product quality
Brand
Service
Service
We buy from a company because it delivers quality products, great value, or a compelling brand.
We leave one, because it fails to deliver on customer service.
Hoeveel moeite heeft het jou als klant gekost om iets voor elkaar
te krijgen? Op de
schaal van 1 tot 5
CES
Customers’ intention to:
- Keep doing business with the company - Increase the amount they spend
Customer loyalty
94% of the customers who report low effort have an intention to
repurchase
88% would increase their spending
1% would speak negatively about the company
81% would spread negative word-of-mouth
Low Effort High Effort
In welke mate zou je mijn bedrijf aanbevelen binnen jouw netwerk?
Net Promotor Score
London School of Economics 2005
Captures customer expressions at the transaction level
Captures more-holistic impressions of a
company
NPSCES
Implications
• Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason.
9.732 customer responses102 service companies19 industries
Implications
• Customer Effort Score question can be asked only if a customer has actually contacted the company after a purchase for some reason.
• Asking the CES question is a good predictor of the impact of the service experience on customer loyalty, but it won't tell you what to do about it.
- What are the various customer service touchpoints?
- What effort does the customer encounter as part of the touchpoint?
- What are your customer interaction systems and processes like?
?
1. Don’t just resolve the current issue - head off the next one
2. Arm reps to address the emotional side of customer interactions
3. Minimize channel switching by increasing self-service channel “stickiness”
4. Use feedback from disgruntled or struggling customers to reduce customer effort
5. Empower the front line to deliver a low-effort experience
- If you combine the metrics in order to predict loyalty, the predictive power is higher than only using NPS and CSAT alone.
- Simplicity is nice, but too simple is dangerous.
Is CES the right metric?
- The number of CES best practices is growing.
- Only for measuring transactional / situational loyalty. It’s not a absolute loyalty metric.
- Relative performance over time, unique to a single firm.
“78% of all our perceptions are wrong”Albert Einstein
http://www.businessmonitor.nl/businessmetrics
Thank You!
drs. KATHERINE KUCHERENKOOnline Business [email protected]@katherinekucher06 423 923 66
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