Archive for Archive for October, 2009
How Good Is Our Score? By D. Randall Brandt, PhD
Where and how high should managers “set the bar” for measures of customer experience and loyalty? If these measures are derived from survey data, what can or should be considered a “good score?” Managers ask these and related questions frequently, and for good reason: Decisions regarding allocation of resources, reward and recognition, and channel partner certification frequently are on the line. If an organization is basing such decisions on whether targets for key customer metrics have been met, then the rationale for such targets had better be solid and defensible.
This article examines some of the most common approaches to setting targets for measures of customer experience and loyalty, including the strengths and limitations of each. Subsequently, the article describes an approach to target-setting that is based on how customer metrics are linked to financial and other desired business results metrics. The advantages of this “linkage-based” approach over the more common methods are highlighted.
