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.
Building A Culture Of Customer Satisfaction Measurement
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Summary
Building a culture of customer satisfaction measurement involves creating strategies and practices to consistently evaluate and enhance the experiences of customers while aligning these efforts with business growth goals. It’s about using meaningful metrics and fostering a company-wide focus on understanding and acting on customer needs.
- Shift from feelings to behavior: Focus on metrics like repeat purchase rates and time to repeat purchase instead of relying solely on customer sentiment scores like NPS to gauge loyalty and drive revenue growth.
- Combine diverse data sources: Integrate surveys with tools like digital analytics, customer journey mapping, and social listening for a more comprehensive view of customer satisfaction.
- Engage leadership and teams: Build top-down and bottom-up strategies by empowering employees with customer-centric training and involving leadership to connect satisfaction metrics to business outcomes.
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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
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#CustomerExperience leaders need to split their strategies into deliberate bottom-up and top-down approaches. Many get the bottom-up right, but they struggle with the top-down. Bottom-up strategies focus on improving customer-centric employee behaviors at scale. These approaches include #CX or empathy training for front-line workers, using Voice of Customer feedback to set touchpoint expectations based on customer feedback, and building customer-centric KPIs into individual performance appraisals. But where many CX leaders struggle is often with engaging senior leaders to influence their customer-centric behaviors. It's difficult to influence C-suite behavior, but if you're expected to improve customer-centric culture in the organization, then you cannot avoid this. Top-down strategies start with showing senior leaders how customer satisfaction impacts growth, retention, margin, and lifetime value. It also includes improving CX and VoC reporting to provide more recommendations and actions, not just findings and data. Having discussions with leaders about the importance of financial and non-financial rewards for customer-centric behaviors is another tool in the top-down toolkit. And using personas and journey maps is a vital way to convert customer and touchpoint data into a compelling story of necessary change. Don't rely on dashboards and reports to do the job of top-down CX engagement. Don't count on a couple of positive customer-centric comments from leaders as a sign of meaningful, irreversible support. And do not assume that the fact your CX job exists is evidence of senior leaders' commitment to customer experience. Part of the job for a successful CX leader is to constantly prove the value of customer-centric strategies, influence senior leader priorities, and arm decision-makers with the insight they need to make customer-centric decisions. Don't just empower your frontline workers and assume the job is done. If you aren't building a consistent dialog with executives, you're not only missing an opportunity to make the most significant customer impact but also seeding future problems that can lead to declining support, budget, and resources for customer experience initiatives. Take a comment today to identify or define your top-down and bottom-up CX strategies for 2024. If there's an imbalance, solving that now can lead to better outcomes by the end of this year.