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In Search of the Perfect Metric
Don't hold out for a magic bullet.
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Most people would like a magic bullet or secret ingredient to make everything easier. That certainly applies to voice-of-the-customer (VoC) strategists, who have long sought a universal metric that accurately measures and predicts customer behavior. Measures such as satisfaction, loyalty, value, Net Promoter Score, commitment, and trust have frequently been debated on the basis of their strengths and weaknesses.
Unfortunately like most so-called magic bullets, the perfect universal customer metric does not exist. However, that doesn't mean there isn't an ideal metric that will work for your business.
First, let's look at the two primary reasons customer metrics fall short:
The metric isn't aligned with business goals. Too often, a metric is adopted because it is simple or was touted in a business book. However, it may not be an indicator of growth, market share, share of wallet, or other business objectives. In other words, the metric doesn't align with the business and fails to predict customer tendencies.
The metric is not used effectively. Employees often see the metric merely as a rating, rather than a useful way to guide decisions. Or it is used to incent the wrong behavior. In a conversation I recently had with a technology account representative, she admitted how she often "cherry picks" her customers and begs them to fill out a survey just so she can hit the goal mandated by her corporate office.
Read the entire Patrick Gibbons article
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