Episode 30 - The Service Industry Is Still Measuring The Wrong Things

I had an interesting conversation with a colleague about analytics a few weeks ago about analytics software. We talked about AI and advanced analytics but I digress. I want to talk about what service leaders measure, particularly in the contact center or service centers. What are you measuring? Do me a favor, bring out your scorecards and lets evaluate what you are measurin. I will wait. Let us start at the top of the organization. Most of your metrics tend to be financial, then it filters down to whoever the leader CCO, over the CX organization. Let's start there. What is on that scorecard? This isn't rhetorical. Please share with us. So I suspect that scorecard has some efficiency metrics and some for effectiveness. So like most organizations you probably pretend to care about customers, who doesn't at least pretend to be into CX right? Let's stay there for one second how are you measuring that all important metric. NPS? CES? CSAT, WOM? Why are you interested in measuring customer sentiment? Really why? I suspect you want to know how your customers feel. But why? The answer must be that you believe customer sentiment is directly correlated to outcomes that are important to you? Wallet share? whatever is important to your organization. My question today is can you prove that there is a direct correlation with your service metrics top your company objectives. If you can prove it, why are you struggling with getting your organization to bet big on service? Compare to marketing.... half my dollars are wasted but can't tell which half. How come your org spends a tons money on marketing and is better off setting the money on fire but does it time after time after time. You know why, no one believes you that taking care of customers is the path to growth. I believe you, I believe you and I think it is predictable. But your CFO isn't buying it. Let me let you in on a story when I worked for one of the biggest online retailers, I looked at our service levels - how much time to answer calls as atrocious so I decided my gosh we have to improve hold times. My boss who is the President of the company (smart guy but a bean couter) asked me to make a business case to prove that making customers wait less was a good business decision. Not in soft dollars but in hard dollars. So to be clear, I was biased in favor of improving service levels and I couldn't prove it, customer hold times had no correlation whatsoever to the outcomes that mattered to the CFO. Now if you want to feed me the argument that there are some soft ROI sure but can you sell that to your CFO? I have seen thousands of scorecards now doing this line of work and one thing is clear, one big reason why we have not seen a BIG shif in the customer and service experience is because the guys who are supposed to be making the case are showing up with the same old tired numbers and we are blowing it. There is a better way. If your scorecard looks the same as it did 10 years ago, and don't feed me balanced scorecards, I mean can you look your CFO in the eye and say the following unlike my friends in marketing I can show you that every dollar you invest in service will make us money or more profiatable then you are doing it wrong. Here is what is making me excited. Investing in service is every bit as important as investing in Marketing and sales and you can prove it. You do not have to rely on soft metrics