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Better customer service absolutely improves your bottom line – but measuring that improvement can be tricky! Here’s how to know whether your service efforts are going to pay off. As a business leader, you need to measure the financial performance of your organization – profitability, shareholder value, market position. The problem is that those numbers are all lagging indicators.
That means when it comes to service improvement and other initiatives, you can’t see the ROI in advance. Which means you can’t know if you’re on track to meet your goals. Which means you can’t course correct in a timely fashion.
To compensate, organizations measure other metrics. Things like Net Promoter Score or Customer Satisfaction Score. Except, oops! Those are ALSO lagging indicators. So what are the leading indicators of a successful (and profitable!) service improvement program? What should you be measuring to know if your service initiatives will produce a real ROI?? Watch the video to find out…
#VideoPosts #ServiceImprovement #ServiceMetrics #ServiceLeadership
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Below is an Autogenerated Transcript
One of the things that you might say we should measure are what I consider to be the ultimate financial objectives in a business. Top line revenue. Bottom line profit. Share of market. Share of wallet. Shareholder value. Show me the money. That’s fine.
The only problem with regards to those measures, and the question that I asked is that those measures are lagging indicators. Those numbers show up after all the services that you provide. So what would be a leading indicator? How can you know you’re going to get the money? That would be your scores. If your satisfaction score is going up, if your loyalty index is going up, if your employee engagement score is going up, if all of these are going up, up, up, up, you’re gonna get the money.
But you don’t do these surveys every day. You don’t look at these data reports on a right now, right now, right now, right now basis. So what would be a leading indicator that would let you know you’re going to get higher scores? Well, that would be feedback from your customers and from colleagues to each other. If you’re getting a lot of five star reviews, thumbs up, pat on the back, attaboy, positive compliments, you’re going to get higher scores, you’re going to make the money.
Now, how do you get a compliment? What needs to happen so that somebody wants to make the effort to give you a positive pat on the back? A positive thumbs up. Will people give al-Ansari a compliment because you did what they expected? Do you get compliments for doing what was expected? No.
So then you have to figure out something that is not just normal, come up with some other idea and actually try it. Do it. Put it into action. Which means, like today, we want to be looking at the way we do our business, the way we serve colleagues, people in other departments and customers, and get a new idea, a new insight, a new possibility. Come up with a new action and then put it into action.
