Customer Loyalty Metrics

Had an insightful conversation over the weekend with a colleague about a common pitfall in CX programs: relying solely on surveys and ignoring other valuable insights. Here are some key takeaways: Ease of Implementation Surveys are easy to deploy and manage, providing quantifiable data that’s simple to analyze. This makes them an attractive option for many organizations, especially those with limited resources. Tradition and Comfort Many companies stick to surveys because it’s what they’ve always done. Changing this entrenched practice can be challenging, especially if the leadership team prefers traditional methods. Resource Constraints Surveys can be cost-effective, making them appealing for smaller organizations that may not have the budget for more sophisticated tools. Organizational Silos Feedback often gets trapped within departmental silos, preventing insights from being shared and acted upon. Lack of Ownership Without clear ownership of the feedback loop, survey results can end up being ignored. It’s crucial to have designated teams responsible for analyzing feedback and driving action. Inadequate Analytics Capabilities Many companies lack the analytical capabilities - people and tech - to turn survey data into meaningful insights. Cultural Resistance Taking action on feedback requires change, which can be met with resistance. Companies need a culture of continuous improvement to effectively address feedback. Short-Term Focus Organizations sometimes prioritize short-term gains over long-term improvements, leading to reluctance in making significant changes based on feedback. Here is where we ended in terms of actions to take: 1. Integrate Multiple Data Sources: Combine survey data with digital analytics, social listening, and customer journey mapping for a comprehensive view of the customer experience. 2. Foster a Customer-Centric Culture: Encourage leadership commitment, employee training, and recognition programs that reward customer-centric behavior. 3. Invest in Analytics: Enhance analytics capabilities to turn data into actionable insights. 4. Close the Feedback Loop: Implement a closed-loop feedback system and communicate changes to customers. 5. Design Thinking and Customer Co-Creation: Use design thinking methodologies to deeply understand customer needs and co-create solutions. 6. Cross-Functional Collaboration: Promote collaboration across departments to discuss feedback and develop action plans. 7. Measure Impact and Iterate: Continuously measure the impact of changes and iterate to improve further. What are you doing to get out of the CX-as-a-survey (CXaaS) trap? #customerexperience #cx #surveys #analytics #designthinking #customercentric

CSAT measurement must be more than just a score. Many companies prioritize their Net Promoter Score (NPS) as a measure of Customer Satisfaction (CSAT). But do these methods truly give us a complete understanding? In reality, surveys are not always accurate. Bias can influence the results, ratings may be misinterpreted, and there's a chance that we didn't even ask the right questions. While a basic survey can indicate problems, the true value lies in comprehending the reasons behind those scores and identifying effective solutions to improve them. Here’s a better way to look at CSAT: 1. Start with Actions, Not Just Scores: Observable behaviors like repeat purchases, referrals, and product usage often tell a more accurate story than a survey score alone. 2. Analyze Digital Signals & Employee Feedback: Look for objective measures that consumers are happy with what you offer (website micro-conversions like page depth, time on site, product views and cart adds). And don’t forget your team! Happy employees = Happy customers. 3. Understand the Voice of the Customer (VoC): Utilize AI tools to examine customer feedback, interactions with customer support, and comments on social media platforms in order to stay updated on the current attitudes towards your brand. 4. Make It a Closed Loop: Gathering feedback is only the beginning. Use it to drive change. Your customers need to know you’re listening — and *acting*. Think of your CSAT score as a signal that something happened in your customer relationships. But to truly improve your business, you must pinpoint the reasons behind those scores and use that information to guide improvements. Don’t settle for simply knowing that something happened, find an answer for why it happened. Art+Science Analytics Institute | University of Notre Dame | University of Notre Dame - Mendoza College of Business | University of Illinois Urbana-Champaign | University of Chicago | D'Amore-McKim School of Business at Northeastern University | ELVTR | Grow with Google - Data Analytics #Analytics #DataStorytelling

Employees often miss what #CX is about, so I have an ice-breaker activity I've used at the beginning of #CustomerExperience workshops. Now, I offer this idea to you: At first, this will seem obvious and perhaps unhelpful, but stick with me, please. The activity is to have small groups spend 10 minutes discussing what drove their satisfaction and dissatisfaction with recent air travel. No, the outcomes will not be surprising—but that hides a really important point that will shake up participants' expectations and attitudes. Of course, everyone says the same things in this exercise. "I was satisfied because we arrived on time." "The snacks were better than expected." "The seats were surprisingly comfortable." "The flight attendants were attentive and pleasant." And, on the other side, "I was dissatisfied by delays." "Communications about flight changes were poor." "The seat was cramped and awkward." "The staff was grumpy and indifferent." I'll spend a few minutes collecting the drivers of satisfaction and dissatisfaction. Everyone will nod in agreement. And then comes the point of this exercise: Absolutely no one will say that a driver of satisfaction was that the airline flew them six miles in the air and delivered them to their destination safely. In other words, the CORE experience--and the most important priority of any airline--drives virtually nothing in terms of customer relationships. Getting there safely is expected, not a driver of satisfaction, loyalty, and advocacy. That's the "aha." Whether you're talking to a group of healthcare workers who think their only essential function is reducing mortality and morbidity or a room of telecom execs who feel everything hinges only on uptime, the message is that it's not what we do but how we do it that drives differentiation, satisfaction, and loyalty. We all can become so focused on the delivery of our primary product or service--or achieving the chief KPIs--that we can neglect to understand the experience from the customer's perspective. Forcing people to consider their own experiences and perceptions as customers helps them to perceive that air travelers landing safely (or patients having successful surgeries, or your phone service working) isn't what drives differentiated CX and outstanding loyalty. Don't get me wrong—you can't miss the table stakes. An airline isn't forgiven for lax safety because it has fresh nuts, nor is a telecom company pardoned for unreliable service thanks to rapid call answer times. But delivering table stakes is not what drives the kind of rabid loyalty, sales, and margin enjoyed by brands with differentiated CX. Ensuring people realize this before introducing them to customer-centric concepts and practices opens their minds to new possibilities within their existing job roles.

I’m not asking my CSMs to resolve support tickets. I’m asking them to leverage them. Support tickets aren’t just a backlog of problems; they’re customer truth bombs waiting to explode. If you’re not mining them for insights, you’re flying blind—and that’s exactly how churn sneaks up on you. Every Customer Success team I’ve ever led has been trained to use Support tickets strategically. Why? Because they’re packed with insights that make us better at our jobs. ✅ We learn more about the product. ✅ We spot trends before they become problems. ✅ We understand our customers’ use cases more deeply. If you’re not tapping into support data, here’s what you’re missing: 🔥 Emerging Pain Points Recurring issues expose friction in the customer journey. Ignore them, and those minor frustrations turn into churn-worthy headaches. 🔥 Product Gaps Customers vote with their tickets. If the same feature requests or usability complaints keep surfacing, your roadmap is practically writing itself. 🔥 Engagement Risks A spike in tickets isn’t just noise—it’s a flare. Users don’t submit tickets when they’re thriving; they do it when they’re stuck, frustrated, or in need of more enablement. Here are a few ways my team and I are using these insights: ✅ Spot & Engage Struggling Users A surge in ticket volume? Proactively reach out before frustration turns into a cancellation. ✅ Create Targeted Content If the same questions keep coming up, turn those insights into help docs, webinars, or office hours. ✅ Surface Expansion Opportunities Seeing frequent feature requests? Build them—or better yet, use them to tee up expansion conversations. ✅ Map Out User Behavior Support tickets tell you who’s onboarding, who’s adopting new features, and who’s stuck. Use that data to drive deeper engagement. ✅ Collaborate with Product Your product team needs this intel. Share support trends regularly to influence meaningful fixes and features. High ticket volume isn’t necessarily a bad thing—but you need to know how to use it to your advantage. Bottom line? CSMs don’t need to fix support tickets. But the best ones know how to use them to drive retention, expansion, and adoption. _____________________________ 📣 If you liked my post, you’ll love my newsletter. Every week I share learnings, advice and strategies from my experience going from CSM to CCO. Join 12k+ subscribers of The Journey and turn insights into action. Sign up on my profile.

Ever looked at a UX survey and thought: “Okay… but what’s really going on here?” Same. I’ve been digging into how factor analysis can turn messy survey responses into meaningful insights. Not just to clean up the data - but to actually uncover the deeper psychological patterns underneath the numbers. Instead of just asking “Is this usable?”, we can ask: What makes it feel usable? Which moments in the experience build trust? Are we measuring the same idea in slightly different ways? These are the kinds of questions that factor analysis helps answer - by identifying latent constructs like satisfaction, ease, or emotional clarity that sit beneath the surface of our metrics. You don’t need hundreds of responses or a big-budget team to get started. With the right methods, even small UX teams can design sharper surveys and uncover deeper insights. EFA (exploratory factor analysis) helps uncover patterns you didn’t know to look for - great for new or evolving research. CFA (confirmatory factor analysis) lets you test whether your idea of a UX concept (say, trust or usability) holds up in the real data. And SEM (structural equation modeling) maps how those factors connect - like how ease of use builds trust, which in turn drives satisfaction and intent to return. What makes this even more accessible now are modern techniques like Bayesian CFA (ideal when you’re working with small datasets or want to include expert assumptions), non-linear modeling (to better capture how people actually behave), and robust estimation (to keep results stable even when the data’s messy or skewed). These methods aren’t just for academics - they’re practical, powerful tools that help UX teams design better experiences, grounded in real data.

🧨 Hot Take: AI will kill the Net Promoter Score. And honestly? It’s about time. For years, NPS has been the sacred cow of customer experience. Simple. Scalable. Shareable. But here’s the problem: 📉 It tells you what happened, not why 📉 It’s delayed, biased, and easy to manipulate 📉 It treats all customers—and all experiences—the same 👀 Meanwhile, AI is quietly making NPS irrelevant. Imagine this instead: 🤖 Real-time sentiment analysis across every interaction 🧠 Predictive models that flag churn before a survey is even sent 📊 Text analytics that decode exactly what’s driving loyalty—or destroying it 🌍 Multilingual, omnichannel, 24/7 insight with zero friction for the customer No more chasing scores. No more begging for feedback. Just continuous listening and intelligent action. In the age of AI, asking “Would you recommend us?” is like using a pager in the age of smartphones. AI will make NPS obsolete. Let’s move from vanity metrics to value creation. 💬 Agree? Disagree? Are you still using NPS or already moving beyond it? #CustomerExperience #AIinCX #NPS #VoiceOfCustomer #CXTransformation #CustomerInsights #Innovation #Leadership

The MOST critical metric you can use to measure customer satisfaction: (This changed everything for my company) We had a daily deal site with 2 million users. Sounds great, right? But about 18 months in we had a massive problem: → Customer satisfaction was TANKING (we were in the daily-deals business, largest Groupon competitor) Why? Our customers weren't getting the same experience as full-paying customers. They were treated as “coupon buyers”, so they: - Had long wait-times - Didn't get the same food - Got given the cr*ppy tables at the back They went for the full service and they got very low-quality service. And it was KILLING our business model. We tried everything - customer service calls, merchant meetings, forums. Nothing worked. Then I learned about NPS (Net Promoter Score) at EO and MIT Masters. It was an ABSOLUTE revelation. NPS isn't a boring survey asking "How happy are you with our service?" It's way more powerful. It asks, on a simple scale of 0-10: → "How likely are you to recommend this service to a friend or colleague?" 10-9 → Promoters (Nice!) 8-7 → Passive (no need to do anything) 6-0 → Detractors (fix this NOW) It’s such a simple shift on our end and so easy to respond on the customer end: “Hey, would you recommend me or not, out of 10?” “Hm, 7.” “Ok, thank you” — that’s it. Simple reframe, massive impact. We implemented it immediately. But here's the real gold: → We contacted everyone (one-on-one customer service) who used our service and provided a NPS score. They scored us less than 6? - Give them gift cards - Interview them to make them feel heard - Do ANYTHING to flip detractors into promoters Because if they’re scoring you less than 6, they’re actually HARMING your business. These are going to be like e-brakes in your company. NPS became our most important metric, integrated into everything we did. The results? - Improved customer satisfaction - Increased repeat business and customer LTV - Lower CAC (because happy customers = free marketing) - Higher AOV (people were willing to spend more) But it's not just about the numbers. It's about understanding WHY people aren't recommending you and fixing it fast. (Another great feature is that people can also add comments to get some real feedback, but just using the number is POWERFUL). If you're not using NPS, stop what you're doing and implement it tonight. Seriously. And if you are already using it? Double down on those 0-6 scores. Turning your detractors into promoters is where the real growth potential lies. Remember: in business, what gets measured gets managed. And NPS is the ultimate measure of how satisfied your customers REALLY are. So, what's your score? — Found value in this? Repost ♻️ to share to your network and follow Ignacio Carcavallo for more like this!

I used to think I was measuring customer loyalty the right way. Every quarter, I’d report out our NPS score, and every quarter, I’d get the same pushback from leadership: “If our NPS is so high, why are sales down?” “If customers love us, why is churn up?” And honestly? I didn’t have a good answer. I felt dejected as I could feel my credibility and social capital with the execs slip away. I was stuck in the CX trap of measuring advocacy, not behavior. NPS told me customers said they’d recommend us—but it told me nothing about whether they’d actually buy from us again. The lightbulb moment came when I stopped chasing how much customers liked us and started tracking how much they actually spent. That’s when I realized: Loyalty isn’t a feeling. It’s a behavior. So, I pivoted. Instead of leading with NPS, I built our CX strategy around three core metrics that actually predict revenue: 🔺 Likelihood to Purchase Again (Intent) – Are they signaling they’ll come back? 🔺 Repeat Purchase Rate (Behavioral) – Are they actually returning? 🔺 Time to Repeat Purchase (Behavioral) – How long does it take? And guess what happened? 💡 Our CX efforts finally had credibility in the boardroom. When we improved post-purchase experience, I could prove it led to faster repeat purchases. 💡 Marketing and Finance finally saw CX as a growth lever. Instead of reporting on ‘customer happiness,’ I was driving revenue conversations. 💡 We made better investments. Instead of obsessing over ‘improving NPS,’ we focused on shortening the time to second purchase—and sales shot up. The reality is: NPS won’t save you when revenue is down. If you want to be taken seriously as a CX leader, you have to connect the dots between emotion, intent, and action. It’s time to stop measuring how much customers like you and start measuring how much they buy from you. If you’ve had this realization too, let’s talk. Let’s get your CX unf*cked.

The Meaning of Communication Is the Response You Get In my previous post, I talked about resilience and adaptability. Today, I want to explore how Customer Experience (CX) and Neuro-Linguistic Programming (NLP) work together to create impactful and lasting customer interactions. As both a CX professional and NLP Master Practitioner, I’ve learned that it’s not just about metrics like NPS or CSAT; it’s about understanding the deeper reasons behind how customers speak and act, especially when they are upset or angry. This is where one key NLP presupposition comes into play: “The meaning of communication is the response you get.” In CX, it’s crucial to realize that no matter how well-intended our communication is, the true measure of success lies in the customer's response. Their reaction—whether positive or negative—determines whether we’ve succeeded in delivering a positive experience. Here’s how applying NLP principles can elevate CX, particularly when it comes to building rapport with angry customers: Active Listening: When a customer is upset, they often want to feel heard and validated. By actively listening—not just to their words but to their tone and emotions—we can better understand their frustrations. This approach shows that we genuinely care about their concerns, which can help defuse anger and create a sense of connection. Empathy and Validation: Acknowledging a customer's feelings is crucial. Phrases like, “I understand why you’re upset” or “That sounds really frustrating” can go a long way. This validation reassures them that their emotions are recognized and that we are on their side, working towards a resolution. Mirroring and Matching: Subtly mirroring the customer’s tone and body language can create a sense of rapport. If a customer is speaking passionately or with frustration, matching that energy (while maintaining professionalism) can help them feel understood. This technique can ease tension and create a more conducive environment. Offering Solutions: Once rapport is established, it is important to focus on solutions to ease the customer’s frustration. “Here is what I can do to fix this” helps shift the conversion from frustration to reassurance. Follow-Up: After resolving the issue, following up with the customer demonstrates that we value their relationship. A simple message to check in shows commitment to their satisfaction and can turn a negative experience into a positive one, strengthening loyalty. Blending CX frameworks with NLP insights doesn’t just improve customer interactions; it also enhances internal communication, leadership, and collaboration, nurturing a truly customer-centric culture. How are you applying human psychology in your customer strategies? Have you had moments where truly understanding a customer’s emotions made all the difference? I’d love to hear your thoughts! #customerexperience #strategicgrowth

CSMs, are we asking the right questions? 🤔 Sometimes, we stick to surface-level questions that don’t really get to the heart of what our customers need. But small tweaks can lead to big insights. Here’s how to take your customer conversations from basic to brilliant: Go from: "Are you happy with the product?" ➡️ To: "Can you share a specific example of how our product helped you achieve a recent business goal?" Asking if someone is happy only scratches the surface. The better question digs into the value they get from the product and how it ties into their success metrics. Go from: "Do you have any issues with the product?" ➡️ To: "Can you walk me through a recent challenge you faced while using the product and how you worked around it?" A yes/no question limits feedback. Asking for a specific experience helps you understand user pain points and provides actionable data. Go from: "What features do you like?" ➡️ To: "Which feature did you use most often this past week, and how did it help your team?" It’s not just about what customers like; it's about what creates the biggest impact for their team. Go from: "What are you concerned about during your next board meeting?" ➡️ To: "What key metric are you most focused on reporting to your board next quarter?" Asking this question helps you understand your customer’s priorities and where your product can help them deliver on their goals. Go from: "What metrics are you held accountable to in your specific role?" ➡️ To: "Which metric has been most challenging for you to hit, and how can our product help improve it?" This question shifts the focus to their pain points, giving you a chance to help them leverage your product to overcome obstacles. Go from: "Are there aspects of our product that you feel you are not fully utilizing yet?" ➡️ To: "Is there a feature of our product that you haven’t fully explored but think could be valuable for your team?" This specific question gets customers thinking about how to get more value from your product and where they might need help to unlock new features. --- These updates give you more than answers. They push deeper talks that lead to useful ideas and better connections. What’s one question you plan to improve in your next customer conversation?