Tag Archives: Costs

Moneyball, Metrics, and the Customer Experience

If the customer experience profession can learn one thing from Moneyball it should be that tracking the wrong metrics can be expensive and lead to the wrong result.

Moneyball, Metrics

Part of the Oakland A’s success arose because they turned away from conventionally accepted activity-focused metrics (RBI, stolen bases, and batting average) and turned towards achievement metrics (slugging and on-base percentage).

What metrics are you tracking that are misleading you into a false sense of security?  Here are a couple to get you started…

  • Mean Time to Repair and Average Speed of Answer – Many companies track trends in ASA.  The reality is that such a measure may lead to behaviors that are inconsistent with a quality customer experience and interaction (e.g. answering quickly but immediately placing a caller on hold).  What matters more is experience consistency.  So companies would be better served to achieve smaller variance around their average.  Once they tighten the bell curve, then entire experience can be improved.  First make the experience predictable.  Customers hate surprises as much as any company does.
  • Call DurationZappos put an end to the fallacy surrounding this metric.  Their philosophy was to develop customer relationships (to achieve loyalty).  By shortening call duration, they realized they were limiting the likelihood of a meaningful relationship.  A more appropriate metric would be some sort of customer satisfaction measure, like NetPromoter.  Basically, “did we meet your expectations/needs?”  Not “did we get off the phone fast enough?”  The first question addresses a customer need while the second meets a corporate need for efficiency.

The pivot point is that, like the Oakland A’s, by adopting a ruthlessly self-critical look at the metrics we track, we can improve our winning percentage while reducing payroll costs.

Zappos Customer Service Stumbles, Doesn’t Fall

If you follow customer service industry you may be aware that Zappos, renowned for their service, had some recent issues.  Upgrading its Warehouse Management System (WMS) caused Zappos to delay customer order shipment.  This stumble is important only because it will further strengthen their company.

Any other company and you might be forgiven for declaring the end of the world.  For Zappos, however, their customer-centric DNA will win the day.  Their brand is built on service and their engaged employees take personal pride in that reputation.  They will take the necessary steps to right the wrongs, to improve as a result, and to re-earn our loyalty.  And don’t forget the benefits the integrated WMS brings.  Zappos gained access to the Amazon inventory and now both companies can take advantage of Zappos’ legendary customer service.

Why might a customer forgive Zappos?  Zappos’ reputation was earned through repeated focus and execution.  We trust them, believe they will learn from the mistakes, and have confidence they will find ways to improve.  They won’t rest until this blemish is erased from memory.

The pivot point is that when your company is known for service, customers give your company the benefit of the doubt and continue to do business with your firm.  The reverse is true as well.  Companies that are known to have little vested interest in service create the conditions that make exodus a distinct likelihood.  Next time you think about cutting costs by cutting service, think about whether or not you could suffer a set-back successfully.

What problems would cause customers to deny you a second chance?

Why What You Want Doesn’t Matter

Ever get unsolicited calls from someone trying to sell you something?  I got one the other day and was reminded why they are generally unsuccessful.

The salesperson went through a brief introduction of himself and his company (they outsource technical support).  Then he mentioned some customer names to pique my interest.  (Perhaps he thought we wanted to emulate those companies?)  He left his contact information and followed up with an email to be sure I had his contact information.  All in all, it was standard fare for an outbound sales call.

Here’s why he didn’t/won’t receive a return call.

The call focused on what he wanted.  In a message that lasted sixty-two (62) seconds, he told me what I could do for him… four (4) times!  Not once did he appeal to my business needs.  Was I trying to:

  • Reduce costs?
  • Increase customer satisfaction?
  • Drive revenue higher?

I had zero incentive to pick up the phone to help because – what he wanted doesn’t matter.  To earn the return call he should have painted a clear picture of how his business, product, or service could solve my problem.

The pivot point is that we must ensure our phone calls and emails serve customers’ needs.  If our value-proposition solves our needs alone, customers have no reason to respond to our well-intentioned outreach.