MEASURING ACCURATELY
In the current climate, understanding your performance is probably one of the hardest things to measure. Historically, metrics like NPS might have been enough to give a clear view on whether things were going well. But the world (even pre-CV19) is changing, and whether you can rely on a single, passive metric to guide bonuses and action is… questionable.
The interactions customers have with your brand happens on a number of different levels all at the same time. From whether things are just working well, to whether they made a person feel good. Take airlines (hopefully you can remember back to yesteryear). Of course, you want your flight to be safe, the pilot to be trained, the check in service to be smooth and easy. But on a flight, you also want to feel well looked after, special and have a great experience. If a cabin crew calls you by your name as you walk on the plane, and knows your food allergies from the last flight you took with them, that is going to make you feel special. And what about after your holiday, imagine if they gave you bespoke suggestions on where to visit next based on your last flights, and told you first about the sales. This is taking basic experiences like safety and adding enhanced elevations of your experience.
which of those experiences do you think you’re going to remember the most.
Which of them are you going to tell your friends about? I don’t think I’ve ever recommended an airline because they got me to my destination in one piece. But I have recommended one which gave me some bubbly.
But the key thing here is not only whether someone will recommend you, but whether they will keep coming back, and spending more. When it comes to spending more, NPS just doesn’t cut it. It doesn’t accurately predict whether someone will give your brand a bigger share of their wallet. What you need in this situation is a holistic metric. One that takes into account all the area’s that impact your experience. We found that our Loyalty Model is far more accurate at predicting increased revenue for a business.
Not only does it more accurately tell you how your business is performing, it provides so much more detail behind the number for you to zero in on the specific areas of your product or service that need attention. And, because it’s far more holistic, it will encompass all areas all the time, so if things like quality of service become far more important in volatile times, you’ll capture it right away and be able to pivot and react quickly, and therefore continuously measuring the potential or impact things have on your business performance. It’s a very different time at the moment, but things will keep changing, and that’s why one metric just isn’t enough to help businesses succeed in these volatile times.
By Sabrina Qureshi