Innovating Analytics - How Next Generation of Net Promoter Can Increase Sales Drive

How does a CEO, manager, or entrepreneur begin to sort out what defines and drives a good customer experience and how it can be measured and made actionable? If you know how well the customer experience is satisfying your customers and you know how to increase their satisfaction, you can then increase sales, return visits, recommendations, loyalty, and brand engagement across all channels. More reliable and more useful data leads to better decisions and better results. Innovating Analytics is also about the need for a comprehensive measurement ecosystem to accurately assess and improve the other elements of customer experience. This is a time of great change and great opportunity. The companies that use the right tools and make the right assessments of how to satisfy their customers will have the competitive advantage.Innovating Analytics introduces an index that measures a customer's likelihood to recommend and the likelihood to detract. The current concept of the Net Promoter Score (NPS) that has been adopted by many companies during the last decade--is no longer accurate, precise or actionable. This new metric called the Word of Mouth Index (WoMI) has been tested on hundreds of companies and with over 1.5 million consumers over the last two years.Author Larry Freed details the improvement that WoMI provides within what he calls the Measurement Ecosystem. He then goes on to look at three other drivers of customer satisfaction along with word of mouth: customer acquisition, customer loyalty, and customer conversion.

List of contents

Introduction 11 Customer Experience 2.0 52 NPS--What It Is and What It Does Well 153 NPS--Fundamentally Flawed 214 WoMI--The Next Generation of NPS 335 The Four Drivers of Business Success 536 Why the Customer Experience Matters 737 The Customer Experience Measurement Ecosystem 978 Best Customer Experience Practices 1239 Big Data and the Future of Analytics 157Afterword: Measuring Customer Experience--A Broader Impact and the Start of a Journey 171Appendix A: Satisfaction, WoMI, Net Promoter, and Overstatement of Detractors for Top Companies 173Appendix B: Are Those Least Likely to Recommend Actually the Most Likely to Discourage? 201Appendix C: Eleven Common Measurement Mistakes 207Appendix D: An Overview of Measurement and Model Analysis Methods 221Acknowledgments 273Index 275

About the author

LARRY FREED is the President and CEO of ForeSee, a customer experience analytics firm that measures satisfaction and delivers powerful insights on where to prioritize improvements for maximum impact. An expert on customer satisfaction across all touchpoints and at the brand level, Larry speaks extensively on the topic at private and public sector industry events and has been quoted in numerous publications and media, including CNN, the Wall Street Journal, the Washington Post, and Investor's Business Daily, among many others. Larry is also the author of Managing Forward, published in 2011.

Summary

How does a CEO, manager, or entrepreneur begin to sort out what defines and drives a good customer experience and how it can be measured and made actionable? If you know how well the customer experience is satisfying your customers and you know how to increase their satisfaction, you can then increase sales, return visits, recommendations, loyalty, and brand engagement across all channels. More reliable and more useful data leads to better decisions and better results. Innovating Analytics is also about the need for a comprehensive measurement ecosystem to accurately assess and improve the other elements of customer experience. This is a time of great change and great opportunity. The companies that use the right tools and make the right assessments of how to satisfy their customers will have the competitive advantage.

Innovating Analytics introduces an index that measures a customer's likelihood to recommend and the likelihood to detract. The current concept of the Net Promoter Score (NPS) that has been adopted by many companies during the last decade--is no longer accurate, precise or actionable. This new metric called the Word of Mouth Index (WoMI) has been tested on hundreds of companies and with over 1.5 million consumers over the last two years.

Author Larry Freed details the improvement that WoMI provides within what he calls the Measurement Ecosystem. He then goes on to look at three other drivers of customer satisfaction along with word of mouth: customer acquisition, customer loyalty, and customer conversion.

Report

"Innovating analytics is critical in baseball, in politics, and in business. Larry Freed is at the forefront of developing useful new metrics that will help businesses succeed."--Billy Beane, General Manager of the Oakland Athletics and the subject of the bestseller Moneyball."Challenging conventional wisdom and building upon the wealth of knowledge derived from one of the most widely used customer experience measurement tools in business today, Innovating Analytics is an essential addition to any marketer's library. Clearly Larry Freed is one of the leading minds in the customer experience industry, as he thoughtfully offers tested and practical strategies that businesses can implement immediately."--Bruce Rogers, Chief Insights Officer, Forbes Media"Innovating Analytics is a natural extension of Larry's career-long exploration of innovative business solutions."--Thomas H. Zurbuchen, Associate Dean of Entrepreneurial Programs at the University of Michigan"Larry Freed and ForeSee are at the forefront of transforming business around the world with actionable, predictive metrics. Innovating Analytics contains critical information for any executive who wants to improve business outcomes."--Rick Snyder, Governor of the State of Michigan"Innovating Analytics is a compelling exploration of the potential power of customer experience metrics in the modern age. Larry Freed's combination of academic research with practical business implementation makes this book a must-read for any business leader."--Mark Mahaney, Managing Director at RBC"Too many businesses are relying on metrics that are outdated and have no relationship to company growth and profit. Innovating Analytics is a must-read for any executive about the power of good metrics and the dangers of bad ones."--Claes Fornell, Founder and Chairman of the ACSI and author of The Satisfied Customer

Product details

• Authors: L Freed, Larry Freed, Freed Larry
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 05.11.2013
• EAN: 9781118779484
• ISBN: 978-1-118-77948-4
• No. of pages: 288
• Subjects: Social sciences, law, business > Business > General, dictionaries; Management, Business & management, Wirtschaft u. Management, Allg. Wirtschaft u. Management