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Are you incentivizing the WRONG behaviors from your team? Many leaders are – simply by virtue of the measures they track.
Of course, metrics and KPIs are essential for measuring your progress on key goals and priorities. But if you’re not careful about WHAT you track and HOW you track it… you might be encouraging your team to put the customer last.
Here’s what I mean: If your teams are evaluated and rewarded based on their KPIs…and they have to choose between meeting their goals and improving the customer experience… they will often prioritize THEIR OWN KPIs. Even at the expense of a better service experience.
That means all the effort you’ve put into improving customer service gets undone. Worse, the metrics that REALLY matter to your business, like customer retention, revenue, profit, and market share will take a hit.
And as a leader… it is your responsibility to measure what REALLY matters. So, take an honest look at how effective your KPIs and metrics actually are. And then make adjustments so that your team incentives are aligned with your organizational priorities.
Watch the video to discover which measures REALLY matter when it comes to customer service… and your business’s bottom line.
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Below is an Autogenerated Transcript
How do you measure that you really have the right service culture and that facilitates that breaking of silos? That’s great. One of the 12 building blocks is called Measures and Metrics, and these are the quantitatively trackable components. Whether it’s percentages or ratios or raw numbers. The other in the overall feedback is called Voice of the Customer, and that’s more of the qualitative emotional, subjective, what people write in, in free text form boxes, etc., or tone of voice. So, what you’re asking about is the measures and metrics side. And what happens is KPIs get created that look like a good idea to track to see whether or not a particular department is being efficient or effective. The trouble is, the moment you put those those particular types of metrics in place, they become the target that people are focusing on. It gets even worse when you then tie their compensation to it, because then people are going to do whatever they can do, including gaming the system so that their KPIs goes up, even potentially at the risk to some other departments KPIs. And the customer is almost like tertiary. You know, it’s like, “Oh yeah, if they get a good experience, that’s fine.” So then what needs to happen is someone in leadership needs to have the guts to literally be able to look at what is it that we’re actually measuring? What is it that our customers actually care about? And what are we, what are we committed to provide for those customers? And then have those common metrics be what the organization is focusing on. Now, that may require change in practices, that may require certain types of collaboration and most painfully, it may require abandoning certain metrics that people have become accustomed to, they’ve become habituated to, and they know how to play that game. And so, if you’ve got your their bonus tied to it, the promotion tied to it, or the ranking tied to it and then you take it away, you better have a pretty strong reason why and provide them with all the other cultural elements. So that’s why measures and metrics is one building block. But you don’t ask people to come to work in a house where there’s one block. You have to have your foundation and your roof and your windows and your walls and your wires.
