Better experiences. Every customer and employee wants them, businesses want to provide them, and solutions providers promise them. But how does one actually track something as elusive as an “experience?” The following is an introduction to how we help companies measure their delivered experiences.
At PeopleMetrics, we focus on tracking both behavioral and emotional outcomes. And while this approach can be a bit more complicated to explain, the composite score is proven to be more reliable than a single item score. In fact, when we compared our 2008 Most Engaged Customers data to our 2010 data, we found that a five point increase in Engagement correlated with a 56% cumulative share price appreciation.
This composite engagement score is made up of four outcome questions, and we call the score REAP (as in “REAP the benefits” of an engaged customer base).
(R): Retention
Why: Engaged customers will spend more with you over their lifetime than with your competitors, and engaged employees will continue working for you.
(E): Effort
Why: Engaged customers will actually go out of their way to do business with you and are often willing to spend more to benefit from your products and services. Engaged employees feel inspired by their work environment to go above and beyond for customers.
(A): Advocacy
Why: Engaged customers spread the good word, making it easier and cheaper for you to attract new customers. Engaged employees recommend you as an employer allowing you to better compete for talent.
(P): Passion
Why: Engaged customers are passionate about the brand – so passionate that they may even spend time actively promoting the brand to others or defending the brand if others speak negatively about it. Engaged employees love the experience of working for you.
The composite of these four questions is the “ultimate score” or the “people metric.” It provides a snapshot of your most valuable assets: the people who purchase from you and work for you.
And as always, we're here to help if you need us! We'd be happy to answer any questions about your customer experience measurement and employee engagement. Contact us here.
~Janessa Lantz
Photo courtesy of: Paul
Topics: Employee Experience, Customer Experience
