Welcome to our CX Energy Boost Blog! Today, I want to dive into a topic that’s been buzzing in the world of customer experience (CX) – finding the right drivers of customer satisfaction and Net Promoter Score (NPS).
Yes, those elusive elements that can significantly impact how happy your customers are and how likely they are to recommend your company.
Let’s break it down.
What Are Drivers, Anyway?
Let’s start with the basics. Drivers are those factors that have a real impact on customer satisfaction or NPS. They’re the elements that, when improved, can lead to a noticeable increase in how satisfied your customers are. Think of them as the levers you can pull to drive better results. But here’s the kicker – not all drivers are created equal, and finding the right ones is crucial.
The Pitfall of Rational Answers
You might be thinking, “But we already ask our customers what they want!” True, many CX programs rely on customer feedback, often using open-ended questions to gather insights. However, there’s a risk here. When customers answer these questions, they tend to provide rational, well-thought-out responses. Sounds good, right? Well, not exactly.
As humans, we’re not always as rational as we think. The answers customers give might not reflect their true, subconscious needs. They might say speed is important because it’s top of mind, but what really matters could be the friendliness of the staff. We’ve seen time and again that the things customers mention in rational answers are not always the real drivers of their satisfaction.
Smart Statistics to the Rescue
So, how do we get to the real drivers? This is where smart statistics come in. By using techniques like factor analysis, regression analysis, and reliability analysis, we can dig deeper into the data. These methods help us uncover the true impact of various factors on customer satisfaction.
For example, we once found that what customers really valued wasn’t what they mentioned first. In a survey, the number one factor on a subconscious level turned out to be fourth on the rational list. That’s a big difference! By focusing on these true drivers, we can make more effective improvements.
Workshops: The Journey Mapping Magic
Before we even get to the statistics, we start with detailed journey mapping workshops. This is where we bring together employees from all parts of the company – from marketing to finance to back office operations. No customers in this workshop, just the people who understand the internal processes.
We go through each step of the customer journey in detail. What does the customer experience at each touchpoint? What’s the confirmation email like? This helps us build a comprehensive view of the customer’s experience. And believe me, it’s often eye-opening for the participants. They learn so much about what their colleagues are doing and how it all fits together.
From Data to Action: Building the Survey
Armed with this detailed journey map, we create a survey with 30 to 40 statements. Yes, it’s long, but it’s necessary to capture the full picture. We send this survey to customers who have recently experienced the journey – ideally within the last one to four weeks.
Once we have 100 responses or more, we dive into the smart statistics. This is where we let the data speak, revealing the true drivers of customer satisfaction. And the results can be surprising!
The Power of Explained Variance
One key concept in this analysis is explained variance. This tells us how much of the customer satisfaction we can explain with the factors we’ve identified. In simpler terms, it shows whether we’ve found the right topics that matter to customers.
For a practical approach, we aim for at least 40% explained variance, but we often hit between 50% and 70%. If it’s below 40%, we know we’ve missed something and need to revisit our survey and journey mapping.
Focusing on What Matters Most
Once we’ve identified the top drivers, it’s crucial to focus on them. We look at both the impact and the current scores of these drivers. It’s not just about improving low scores; it’s about enhancing the factors with the highest impact. Even a small improvement in a high-impact area can lead to significant gains in customer satisfaction.
For instance, if personal attention is five times more impactful than a digital touchpoint, that’s where you should focus your efforts. Improve that personal touch, and you’ll see a noticeable boost in your satisfaction scores.
Real Results, Real Fast
The best part? This approach works across different countries and cultures. Whether you’re in the US, Japan, or anywhere in between, focusing on the right drivers can lead to impressive results. We’ve seen companies increase their satisfaction scores significantly in just three months. It’s not just a tiny bump; it’s a real, measurable improvement.
Wrap-Up: Making Customer Experience Steerable
In the end, what we’re doing is making customer experience measurable and actionable. By finding and focusing on the right drivers, we can translate the often vague concept of customer experience into hard, steerable insights. This helps companies treat their customers better, which in turn leads to better financial results.
