Breaking Down the Paradoxes: Measuring and Rewarding for Customer Satisfaction

The Importance of Customer Science for CIOs

Customer feedback has become increasingly powerful in today’s interconnected world, as evidenced by examples such as Snapchat losing $1.3 billion in market value due to a tweeted complaint from Kylie Jenner and US companies losing $1.6 trillion in 2016 from customer switching due to poor service. The journey towards customer science is filled with paradoxes, including the organizational paradox of not having someone in the enterprise with the authority to ensure every interaction meets or exceeds expectations, despite the common saying that “Customer is King.”

Glenn Laverty, former president and CEO at Ricoh Canada, resolved this paradox by tying every employee’s compensation to customer experience/satisfaction metrics. This highlights the importance of measuring and rewarding certain behaviors in driving desired outcomes. For example, at Boeing, production throughput compensation metrics were prioritized over safety considerations, leading to unintended consequences.

Claes Fornell, founder of the American Customer Satisfaction Index, points out the data paradox in customer science. Despite the vast amount of customer data collected by organizations, they seem to know less about how to satisfy their customers. This disconnect between data collection and customer satisfaction needs to be addressed in order to truly understand and meet customer expectations.

In conclusion, customer feedback has become increasingly important in today’s world, and organizations must address the paradoxes and disconnects that come with it in order to truly understand and meet customer expectations. Measuring and rewarding certain behaviors can help align everyone’s compensation with customer experience metrics in a calibrated and nuanced way.

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