customer effort score: a new metric to stare at?

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Customer Effort Score: a new ‘single’ metric to stare at? 4C Consulting | The proof is in the people By Geert Martens & Geert Teunkens Page 1 / 4 Image credit: http://momanddadmoney.com The Rise of a New Metric We measure the world by what we see and what we want to reach. With this in mind it is easy to explain the success of the Net Promoter Score along with the increasing popularity of social media since 2004. Suddenly digitised versions of word-of-mouth had a major impact on marketing objectives. NPS, a simplified way to measure customer engagement has proven very successful in detecting how our brands and products will survive the ultimate market test: Will customers promote me among their peers? The rise of NPS was a great way to put the customer’s opinion back on the agenda of management boards around the world, an evolution we at 4C Consulting can only cheer upon. But the times are ever a-changing and a new metric is making way: the Customer Effort Score (CES) introduced by C.E.B. in 2010. If NPS taught us one thing it is that customers are more likely to share negative experiences as opposed to positive ones. Therefore it is not a coincidence that this new metric helps companies focus on internal process improvements, still with better customer experiences at the centre of attention. And it sure is simple; the score consists of a 5-scale answer on one single question: How much effort did you personally have to put in to get your problem fixed? Research has shown CES to be a better predictor for customer loyalty then both traditional customer satisfaction surveys and NPS. Should we stop everything we are doing and simply jump on the next train? Yes and no. CES offers a lot of value but no single metric will ever suffice to effectively evaluate the total customer experience chain. At 4C Consulting we believe the smart thing to do is to integrate CES in the metric ecosystem.

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Page 1: Customer Effort Score: a new metric to stare at?

Customer Effort Score:a new ‘single’ metric to stare at?

4C Consult ing | The proof i s in the people

By Geert Martens & Geert Teunkens

Page 1 / 4

Image credit: http://momanddadmoney.com

The Rise of a New Metric

We measure the world by what we see and

what we want to reach. With this in mind it is easy to

explain the success of the Net Promoter Score along

with the increasing popularity of social media since

2004. Suddenly digitised versions of word-of-mouth

had a major impact on marketing objectives. NPS, a

simplif ied way to measure customer engagement has

proven very successful in detecting how our brands

and products wil l survive the ultimate market test:

Will customers promote me among their peers?

The rise of NPS was a great way to put the customer’s

opinion back on the agenda of management boards

around the world, an evolution we at 4C Consulting

can only cheer upon.

But the times are ever a-changing and a new metric

is making way: the Customer Effort Score (CES)

introduced by C.E.B. in 2010.

If NPS taught us one thing it is that customers are

more likely to share negative experiences as opposed

to positive ones. Therefore it is not a coincidence that

this new metric helps companies focus on internal

process improvements, stil l with better customer

experiences at the centre of attention.

And it sure is simple; the score consists of a 5-scale

answer on one single question: How much effort did

you personally have to put in to get your problem

fixed? Research has shown CES to be a better

predictor for customer loyalty then both traditional

customer satisfaction surveys and NPS. Should we

stop everything we are doing and simply jump on

the next train? Yes and no. CES offers a lot of value

but no single metric will ever suffice to effectively

evaluate the total customer experience chain. At

4C Consulting we believe the smart thing to do is to

integrate CES in the metric ecosystem.

Page 2: Customer Effort Score: a new metric to stare at?

4C Consult ing | The proof i s in the people Page 2 / 4

September 2013Customer Effort Score

Introducing ‘Effort-elasticity’

When customers refer to the effort they had

to invest in researching, purchasing or using a product

or service, they are usually referring to the combined

effect of different types of effort:

• Cognitiveeffort:theamountofmentalenergy

required,suchasreadingtermsandconditions;

• Timeeffort:theamountoftimeittakestowait,

consumeortransact;

• Physicaleffort:theamountofefforttodo

something;

• Emotionaleffort:howmuchnegativevspositive

energyisrequired,i .e.theextenttowhich

somethingfrustratesthecustomer.

From the research we do for our clients, we have

learned that a customer ’s will ingness to invest effort

into an interaction depends on:

• thenatureoftheinteraction

• theperceivedvalueoftheoutcomeofthe

interaction

• thereasonwhytheinteractionistakingplace:

intendedbythecustomerornot

Let’s i l lustrate this with Tomorrowland, the Belgian

dance festival of which, in 2013, the ticketing system

was the victim of its major worldwide popularity.

With more than a mill ion likes on Facebook it is no

surprise that the festival sold out in a flash even

when forcing customers to stick to their screens

for over eight hours on a sunny day. Tomorrowland

was asking their customers to invest tremendous

effort in buying a ticket, yet an NPS survey among

visitors would most certainly stil l turn out positive

since customers promote the festival on a holistic

level; DJ’s, catering... not only the ticketing service.

In this example, the perceived value of the outcome

of the interaction was very high and the interaction

was initiated by the customer. As a result, customers

were will ing to invest ‘timeeffort’, and to some

extent even ‘physicaleffort ’ in this interaction.

Product characteristics can compensate for negative

experiences on single interactions and brand

advocates will even endure very negative experiences

-for a l imited time- in order to get to your product.

But what if you would compare ‘Havingtowaitfor

hoursinarowtobuyaticketforTomorrowland’

with ‘Havingtowait30minutestotalktoacontact

centeragenttohaveyourinternetconnectionfixed ’?

The will ingness to invest effort in the latter, would

be very low: the outcome is of l imited ‘true’ added

value (‘ I alreadypayforaninternetconnectionthat

shouldworkallthetime ’) and a perceived failure of

the supplier triggered the event (‘ I didn’tevenwantto

callyouinthefirstplace’).

The lower a customer ’s will ingness to invest effort

into an interaction, the more important for an

organization to make the interaction as easy as

possible and, hence, increasing the value of CES as a

strategic metric for this interaction.

The Metric Ecosystem

Customer experiences happen at three levels:

the overall relationship, customer journeys, and

discrete interactions.

As often seen with new hypes, the ‘newkidintown’

proves strongest where its predecessor lost track.

Where NPS is a good way to measure performance

of the overall brand and distinct end-to-end

journeys, it is not always easy to pinpoint actionable

improvement areas for specific interactions. This is

where CES offers a major advantage. Since customer

effort is best measured on an interactional level

it brings a lot of information exactly on which

interactions are causing negative arousal, making

immediate steering possible.

Not only do NPS and CES differ with respect to

the level of the experience at which they are best

Page 3: Customer Effort Score: a new metric to stare at?

September 2013Customer Effort Score

4C Consult ing | The proof i s in the people Page 3 / 4

measured, they also measure fundamentally different

components of the customer experience.

CES, much like customer satisfaction (CSAT) is a

perception metric. Perception metrics do not measure

reality but, hence the name, measure customers’

subjective perception of their interactions. This

includes measuring what a customer thinks and feels

at every step in the customer journey. CES does not

tell you an interaction was difficult or easy, but how it

was perceived.

‘Reality ’ metrics, or descriptive metrics measure

observable and objective characteristics of customer

interactions: when, where,and through which

channels customers touched the company. (Average

call time, Calls lost before answered, Average pages

per visit, Average transaction value,...)

NPS belongs to a third type of metrics: outcome

metrics. Outcome metrics measure what customers

are likely to do or actually did after their interaction

(Likelihood to recommend, Likelihood to purchase,

Churn rates, Actual purchases made, Policy renewals)

NPS is the result of a broader, more holistic view,

summarizing multiple aspects at the same time:

customer effort, brand values, product characteristics,

performance relative to competition, and -most

importantly- emotional engagement. NPS is a great

way to measure the customer ’s opinion across

channels, contact moments and experiences and

is therefore a very useful source of information on

brand advocacy and your position on the market.

The most effective measurement programs evaluate

the customer experience at all three levels of

interaction (brand, customer journey, single

interaction) and use a balanced mix of perception,

description and outcome metrics.

How to improve your CES?

Satisfaction is the result of benchmarking

your expectations against your perception of an

actual performance. This also applies to customer

effort. As a result, the most effective way to improve

the customer effort score on a distinct interaction,

combines three approaches:

1. Reducingtheactualeffort=improveyour

performance

2. Managingyourcustomer ’sexpectations

3. Reducingtheperceivedeffort

(1) Reducing the actual effort. Within our customer

care practice, we have been actively working with our

clients to minimize customer efforts by:

• analyzingnegativefeedbackandrepeatcallsto

improvedownstreamprocesses;

• empoweringcontactcentreagentstosolve

problemsandtrainingthemontheemotional

sideofhandlingdisgruntledcustomers;

• minimizingchannelswitchingeffortsby

mappingoptimalcustomerjourneysfordifferent

customersegments.

(2) Managing expectations: under-promise, over-

deliver. Regardless your actual performance,

influencing the expectations of your customers,

will impact their satisfaction levels. Disney has

been applying this insight for years with always

underpromising-overdelivering waiting queues at

their most popular rides. Few companies are as

celebrated for their ability to manage queues and

customer waits as Disney: ‘TheMousehasraised

movingpeoplethroughlinestoascience.’

(3) Reducing perceived effort. You have to describe

the intended experience before it happens. Saying

something will be easy, increases the chance of it

being perceived as easy. Involving the customer in

order to reach this claim, call it co-delivery if you

will, turns out to be very effective in managing

perceptions. For several years, the baseline of a

Page 4: Customer Effort Score: a new metric to stare at?

successful international airline carrier was ‘Help us

stay express by carrying less’. By saying this, nobody

will doubt that your solution indeed will be express,

as long as they keep their part of the promise. So

in order to reduce the perceived effort for your

customers, you could give your customers specific

instructions to do something (bring documents,

read instructions, order in advance,...) and explicitly

mention that this will enable you to provide your

customers with an effort-free experience...

In most of cases switching focus to customer effort

requires a mindset change towards traditional

performance measures. Enabling customers to

transfer money with a mobile app decreases home

bank traffic and associated cross sell opportunities.

When for a telecom player we included a ‘make-an-

appointmentflow’ at the end of each service call

where a face-to-face contact was required, customers

no longer had to locate the nearest point-of-sale and

stand in line to get service. Average call handling time

for contact agents however, went up. All this has to

be considered together with the long term advantages

that enabled customers bring along.

Contact us

Do you agree? Do you have any experience to share

with us? Please let us know!

Geert Martens

Partner

T: +32 15 281 281

E: [email protected]

Tw: @geert_martens

Geert Teunkens

Senior Consultant

T: +32 15 281 281

E: [email protected]

Tw: @Joeng_Teun

September 2013

At4CConsultingwebelievethattakingafreshlookatthewaycompaniesinteractwiththeir

customerscancreatelong-termcompetitiveadvantagesanduniquevalue.Bytheworkwedoforour

clients,wecontributetobuildacustomerdrivensocietyinanincreasinglycomplexworld.

“Theproofis inthepeople”:ourconsultantsareseasonedbusinessprofessionalsthatleverage

industry,domainandtechnologybestpracticesandapplyprovenmethodologiestotacklebusiness

challengesindomainssuchascustomerexperiencemanagement,cross-channelmanagement,CRM,

campaignmanagement,salesforceautomation,customeranalytics,businessintell igenceandchange

management.

Ourcustomerexperiencepracticesincludecustomerexperiencestrategydesign,customerexperience

maturityassessment,segmentationandpersonadesign,voiceofthecustomerresearch,customer

journeymapping,momentsoftruthdesign,customerexperiencemetricsframework,governanceand

culturalchange.

4C Consulting | T: +32 15 281 281 | A: Stationsstraat 60/5 2800 Mechelen - BELGIUM | E: [email protected] | W: www.4cconsulting.com

Customer Effort Score