Low-Hanging Fruit - Part 3

In the previous two blogs that discuss the elephant in the room, this blog takes the next step in describing the elephant. As we describe the elephant using such terms as customer satisfaction, customer experience, customer loyalty, net promoter score, etc. various metrics are provided with the hope of describing the elephant. Metrics used by each of these majors often contain similar measures.

Each of the metrics that researchers derived for the various characteristics of the customer have assumed that the individual metrics captured sufficient information to describe the company/customer relationship. However, as described in parts one and two of this series of blogs, are only characterizing a fraction of the elephant. What has really been captured in the various metrics noted above is the “low hanging” descriptors of the elephant. The elephant, which I have used symbolically to describe the entirety of the company/customer relationship, has only been defined using easily measured parameters.  These parameters are generally limited to the direct interaction between the customer and the company and have only short-term and limited impact on long-term memory.

First Conclusion:  current metrics represent only the low hanging measures of the company/customer relationship

The first question that comes to mind once it’s recognized that only low hanging metrics are being used to describe the company/customer relationship is what measures are missing.  Within that question are the questions relating to other customer contacts not included with the low hanging measures and what measures are missing that are not direct measures.

A comprehensive measure of the company/customer relationship requires two components; namely, direct metrics and indirect metrics.  

            The DIRECT METRICS consist of the metrics of the direct interaction between the customer and the company.

            The INDIRECT METRICS consist of the non-interactive relationship be the customer and the company continues to have an impact on both the customer and the company.

Second Conclusion: the perfect relationship between a company and a customer occurs when all metrics are maximized.

Until all the metrics, between direct and indirect, are known, measured, and maximized the likelihood of understanding the state of the customer/company relationship can not be assessed.

is there an elephant in the room? part 2

Each of the individual metrics appears to capture the chaos embedded in the relationship between the customer and the company. So when each of the metrics is carefully examined, it appears to be possible to gain insight into how well the metric works. More importantly, it becomes possible to see where the metric identifies aspects of the elephant, even though that metric is known to contain errors; either in the metric itself or the variation in the shape of the elephant.

A fact: all measurements contain errors.

Hence when all these metrics are combined, the shape of the elephant becomes more difficult to visualize and understand.  One of the reasons for this lack of visibility describing the elephant is that each of the metrics may contain different forms of measurement error which may pose a challenge to understanding the impact of each error. While it would be convenient and yield better understanding to know all aspects of the elephant, the real objective for these measurements previously described, is to increase the understanding between the customer and the company.

A fact: it is not necessary to have a perfect vision of the elephant

The real value is knowing how well the processes that are being used by the company to provide its products and services to the customer are performing. If the processes are perfect and there are no errors in the implementation of the processes, the company has delivered what it believes to be the best way of improving relationships with the customer.  There are two ways in which the company can fail to maximize its relationship with the customer.  The two ways it can fail are:

1.    1. Unable to deliver the products and services perfectly with no error

2.   2. Unable to provide the best products and services.

This information noted above provides some of the key objectives for managers and executives; namely, managers must constantly assure the processes continue to be provided errorless, and executives must constantly review the products and processes to ensure that each one meets and hopefully exceeds the expectations of the customer.

However, there one aspect that has not been considered; namely, the customer.  Only those aspects of the customer that has an active connection with the company have been considered.  BUT, is there more?   

The picture is not complete.  The metric needs further definition.

Part 3  What is the metric?