In this world, a glimpse into the future comes at a high price. From horse races to elections, people are willing to pay top dollar for a better prediction of what’s coming up. The entire field of market research is funded by this deep desire for accurate prognostication. Business leaders who pay for market research services hope that their investment will pay off in an increased ability to predict and influence future customer behavior. However, soothsaying has never been a simple task, and it’s often difficult for market researchers to match their customer experience metrics with business outcomes. In the past, we’ve discussed why we think Customer Engagement is the best measurement to follow—namely because it actually correlates to future business outcomes, including profit margin, share-of-market, and ROI, a correlation which customer satisfaction research has not found. This year’s Most Engaged Customers study (MEC) turned up more reasons to follow Customer Engagement: it correlates strongly to certain future customer behaviors.
Archive for the ‘Market Research’ Category
How Customer Engagement Translates into Behavior
Wednesday, December 1st, 2010Customer Engagement vs. Customer Satisfaction: Which Should You Follow?
Thursday, September 30th, 2010
“A science is as mature as its measurement tools,” Louis Pastuer once said. The concept applies to the business world as well. In order to survive, companies must retain customers. The tricky part is figuring out which measurement tools can be used to effectively assess, predict, and improve customer loyalty. Since the 1980s, customer satisfaction has been a popular measurement tool for improving retention. In the intervening decades, however, many business experts have questioned the importance of customer satisfaction, pointing out its weak impact on loyalty. These days, many organizations are instead tracking Customer Engagement. Following a brief history of customer feedback metrics, this article will discuss why Customer Engagement is an especially powerful “measuring stick” in the current market.
Benefits of Closed-Loop Customer Feedback Systems
Monday, August 30th, 2010Customer Engagement researchers have always battled the Open Loop—i.e., the difficulty of actually using customer satisfaction survey results to improve company performance. In a recent blog post, we explained how our Customer Engagement solution allows companies to respond to customer feedback in real-time, resolving one of the most frustrating aspects of the Open Loop. We also explored how today’s Enterprise Feedback Management technology can help companies carry out Closed-Loop customer feedback research. In this post, we zoom out to provide a more complete picture of the Closed-Loop feedback process. Along the way, we relate our methods for closing the loop. Finally, we’ll list benefits of Closed-Loop customer feedback systems.
5 Fatal Mistakes in Customer Engagement Surveying
Monday, August 16th, 2010
Rather than measuring customer loyalty or customer satisfaction, the world’s top companies are now tracking Customer Engagement, which PeopleMetrics defines according to Retention, Passion, Effort, and Advocacy. Because Customer Engagement has been linked to higher profits and better ROI, today’s business leaders appreciate the need to track engagement levels. Unfortunately, many companies find it difficult to translate Customer Engagement data into important business outcomes such as customer retention. Before choosing a customer feedback research partner, it’s wise to learn what prevents many companies from fully utilizing research results. By avoiding the five fatal mistakes listed in this article, you can ensure that your Customer Engagement budget will be wisely spent.
Proactive Customer Management: Using Customer Feedback in Real Time
Thursday, August 12th, 2010
Customer feedback mechanisms have always faced the challenge of the “Open Loop.” The Open Loop refers to the gap between the customer’s mouth and the executive’s ear. Survey results are often misinterpreted or underutilized due to the time lapse between when the customer provides feedback and when company leadership sees that feedback. Moreover, the gap in the loop prevents companies from addressing individual customers’ concerns. However, today’s web 2.0 technology allows customer feedback to be tracked in real time, thereby closing the loop. This article will briefly explore the history behind the challenge of closing the loop, and introduce PeopleMetrics’ advanced system for responding to customer feedback in real time. Through groundbreaking Closed Loop customer research approaches, companies can finally manage customer feedback as it is gathered, and thereby enjoy skyrocketing Customer Engagement.