6a. All Competencies: True-False Flashcards
Question #1: CX management dashboards should be comprised of VoC data.
Metrics & Analytics True-False
Correct Answer: False
Explanation: CX dashboards should provide operational + VoC + behavioral + financial insights.
Question #2: NPS™ is calculated as the number of 9-10 ratings minus the number of 1-6 ratings.
Metrics & Analytics True-False
Correct Answer: False
Explanation: The range for detractors is 0-6, not 1-6 as it is mention in the question
Question #3: Measurement quantifies customers’ thoughts/actions; metrics track your progress toward goals.
Metrics & Analytics True-False
Correct Answer: True
Explanation: Surveys measure customers’ perceptions and behaviors. Your actions and market consequences are monitored as metrics.
Question #4: Operational performance affects VoC, which ties to behaviors and then financials.
Metrics & Analytics True-False
Correct Answer: True
Explanation: Your organization’s operations produce what customers experience. That shapes their behaviors, buying, and referrals that shape your financial performance.
Question #5: ROI is calculated as gains minus costs, divided by gains.
Metrics & Analytics True-False
Correct Answer: False
Explanation: The denominator in the ROI equation is cost of the investment.
Question #6: Focus on customers’ intended outcomes in their life or business helps you maximize CX value.
Metrics & Analytics True-False
Correct Answer: True
Explanation: There may be one way to accomplish a task, but there are many creative ways to achieve an intended outcome more efficiently and effectively.
Question #7: The most accurate definition of Customer Experience is: quality of interactions between a customer and an organization.
Metrics & Analytics True-False
Correct Answer: False
Explanation: For customers, selecting, getting, and using a solution involves both interactions and behind-the-scenes decisions and experiences that are not interactions.
Question #8: Business success depends on meeting or exceeding customer expectations.
Metrics & Analytics True-False
Correct Answer: True
Explanation: Both luxury and discount brands are least successful when they fail to meet or exceed customer expectations, and most successful when they do meet or exceed expectations.
Question #9: Experience touchpoint management is the most lucrative path to CXM ROI.
Metrics & Analytics True-False
Correct Answer: False
Explanation: Experience Leadership generates CX Annuities, for the most profitable growth.
Question #10: When every department is united in the quest for customer experience excellence, you are leading CX as a team sport.
Metrics & Analytics True-False
Correct Answer: True
Explanation: The quest for CX excellence implies prevention of CX issues. When every work group is pursuing this in unity (like a winning sports team), you’re on the path to almost-automatic CX excellence.
Question #11: Customer Service is proactive customer experience management.
Metrics & Analytics True-False
Correct Answer: False
Explanation: When customers contact Customer Service, a frustration or lack of clarity has already occurred in most cases.
Question #12: Sunk costs are the portion of your budget with no option to cut or reallocate, due to prior commitment.
Metrics & Analytics True-False
Correct Answer: True
Explanation: Sunk costs include remedies or closing gaps for customers who accepted your value proposition but found it lacking or confusing. These costs are sunk because the only option you have is to let those customers churn to your competitors or to make their own solution or do without your type of solution.
Question #13: Customers are people who interact with us, plus people who have a role in deciding to work with our brand.
Metrics & Analytics True-False
Correct Answer: True
Explanation: A customer is anyone who uses what is obtained, and anyone who has a role in the decision or action to obtain something. You must pay attention to what they all care about if you want CXM to reflect reality.
Question #14: You depend on a certain group of customers for the well-being of your enterprise.
Metrics & Analytics True-False
Correct Answer: True
Explanation: Core-growth customers supply a large portion of your revenue and have lower cost to serve. In nonprofits and governments, certain types of constituents are most vital to your existence. For your survival/well-being, must have excellent CX for your core-growth customers.
Question #15: Leading customer experience as a team sport is about making work fun in your department.
Metrics & Analytics True-False
Correct Answer: False
Explanation: Leading CX as a team sport is about engaging every group across your enterprise in preventing CX issues.
Question #16: In order to determine which metric to use when measuring CX, it is suggested you are able to answer one of these three questions:
- Is the metric sensitive to changes in business performance?
- Does it link to meaningful customer and financial outcomes?
- Is it actionable at both the frontline and strategic levels?
Metrics & Analytics True-False
Correct Answer: False
Laura L. Brooks, PhD, and Richard Owen (2008) suggest answering all of the following three questions in order to determine which metric to use:
Question #17: Leading indicators can provide insight to the impact on lagging indicators, which is why it is important to use leading metrics together with lagging KPIs. Focusing only on lagging indicators does not provide the foresight necessary to manage potential impacts to the CX.
Metrics & Analytics True-False
Correct Answer: True
- Leading Indicators are metrics that predict future outcomes They can be considered as the “inputs” of a CX.
- Lagging indicators are metrics that measure actual outcomes. They measure what happened in the past and indicate how your organization performed.
Question #18: The Service-Profit Chain relates to the connection between CX and EX and how this connection could be traced to the financial success of the organization
Metrics & Analytics True-False
Correct Answer: True
Question #19: CES (Customer Effort Score) concept is about ease of doing business, but it argues that delighting customers should be the focus of organizations
Metrics & Analytics True-False
Correct Answer: False
Customer Effort Score, is a variation on the topic of the ease of doing business. Authors Matt Dixon and his colleagues argued that efforts to focus on higher-level concepts such as
customer delight were ill-focused; they argued that customers place a higher premium on quick and easy answers to their needs (2010).
Question #20: Wallet Allocation Rule is linking loyalty to Share of Wallet; Even if your customers are loyal to you, if the share you enjoy from them is less than what they give your competitors, you are in a losing position.
Metrics & Analytics True-False
Correct Answer: True
Question #21: NPS 3.0 is about having a more rigorous approach to Key Performance Indicators (KPIs) that is less prone to gaming
Metrics & Analytics True-False
Correct Answer: True
NPS 3.0 new approach is about introducing a new metric, Earned Growth Rate, to complement the NPS® score. Earned Growth Rate consists of Net Revenue Retention and Earned New Customers, which are metrics sourced through the finance department and hence, less prone to gaming.
Question #22: Survey-sourced feedback is a critical source of CX data, so should be the only source CX is intrested about
Metrics & Analytics True-False
Correct Answer: False
While survey-sourced feedback is a critical source of CX data, it is not the only source. With the advent of CRM systems, it is now possible to look at customer data more holistically by incorporating financial and operational data into the view of the customer. Moreover, CX professionals can leverage sophisticated text analytics tools to analyze social media data, adding more color to traditional customer data by augmenting traditional metrics with unsolicited customer sentiment data.
Question #23: Understanding the WHAT without understanding the WHY is all you need when it comes to improving experiences for customers, so you should focus your energy on the WHAT
Metrics & Analytics True-False
Correct Answer: False
Metrics such as NPS® or CES can indicate general beliefs and the future behavior of customers. On the other hand, sentiment is needed to understand the strength of those beliefs and why customers think and act the way that they do. Understanding the WHAT without understanding the WHY is not as valuable when it comes to improving experiences for customers.
Question #24: Since it is not possible to measure sentiment with near-100% accuracy, as emotions may vary by demographics and culture and may not be clear to the person experiencing them, it doesn’t worth measuring it.
Metrics & Analytics True-False
Correct Answer: False
Is it worth it to measure sentiment? YES! Measure sentiment because emotions directly influence customer behaviors, such as repurchase. It is critical to measure sentiment – especially its intensity – to understand the totality of the customer experience
Question #25: While O-data can reveal why something has happened in the past, it often lacks insight into what happened and took place or why it is likely to occur in the future. That is because O-data lacks a critical element: people.
Metrics & Analytics True-False
Correct Answer: False
While O-data can reveal WHAT has happened in the past, it often lacks insight into WHY something took place or WHAT is likely to occur in the future. That is because O-data lacks a critical element: people.
Question #26: NPS metric is an overall indicator of the health of your brand and this metric is an actionable one for the organization.
Metrics & Analytics True-False
Correct Answer: False
Explanation: NPS must come alongside customer open text feedback, in order to understand the score and where the health of the brand is harmed. Also - this statement is about rNPS (Relational). You can use NPS as tNPS (Transactional). tNPS will not indicate the overall health of the brand.
Question #27: All KPIs are metrics, but not all metrics are KPIs.
Metrics & Analytics True-False
Correct Answer: True
Explanation: There is a relationship between metrics and KPIs. Metrics are often used to support KPIs. All KPIs are metrics, but not all metrics are KPIs. For example, a business goal to increase revenue by 20% may tracked using KPIs such as renewal or repurchase rates, turnover, etc., to indicate progress toward this goal.
Question #28: Qualitative research answers the who, what, when and where; Quantitative research answers the question “why”.
Metrics & Analytics True-False
Correct Answer: False
Question #1: Design thinking generates many options; problem-solving zeros-in on one option.
Improvement & Design True-False
Correct Answer: True
Question #2: CX improvement strategy centers on VoC action alerts, or case management.
Improvement & Design True-False
Correct Answer: False
Explanation: Most efforts should prevent recurrence or occurrence of an issue for all customers.
Question #3: A moment of truth is a critical point that determines the customer’s reaction.
Improvement & Design True-False
Correct Answer: True
Question #4: Agile design involves customer reviews of prototypes early and often.
Improvement & Design True-False
Correct Answer: True
Question #5: Closed-loop communication shows what’s being done to resolve an issue.
Improvement & Design True-False
Correct Answer: True
Explanation: communication what’s being done, but not if and when it will be implemented
Question #6: Organization needs to create a project to resolve each and every pain point for customers
Improvement & Design True-False
Correct Answer: False
Not always. There should be mutual benefit for both the customer and the organization; improvements should not be one-sided
Question #7: Whenever organizations identify gaps between customers’ expectations to their realities, they should determine a plan to close the gaps, no matter what
Improvement & Design True-False
Correct Answer: False
A company should consider the effort versus impact of specific improvements. It may be that improving one part of the experience past a certain point will be of limited benefit to customers and could prove extremely difficult or expensive to the organization.
Question #8: The end customer goal must be measurable so baseline and improved end state can be quatified. Also, the end goal needs to align with the overall customer strategy
Improvement & Design True-False
Correct Answer: True
Companies can track progress by defining each initiative as effective. The end customer goal must be measurable so that management and practitioners can quantify the baseline and, therefore, improve the end state. The end goal needs to align with the overall customer strategy.