Key terms Flashcards
What is a double-barreled question?
What does it affect?
Validity is lost when your data does not measure what it is meant to measure. A double-barreled question has two elements, so you do not know which element the customer is rating.
These questions make validity weak.
“Are you hungry or thirsty?” and “Do you want coffee and breakfast?”, Both are double-barreled questions
Operational data shows [XXXXXXX]
What happened to the customer
Customer data shows [XXXXXXX]
How customers reacted (to what happend), and we can ask them why
What is validity?
Consistent interpertation without bias
What does it tell you?
The extent to which the results really measure what they are supposed to measure.
**How is it assessed? **
By checking how well the results correspond to established theories and other measures of the same concept.
How does it relate to reliability?
A valid measurement is generally reliable: if a test produces accurate results, they should be reproducible.
What is reliability?
Data is stable if nothing has changed for customers (if you repeat the study you get the same results, if nothing has changed for the customers)
What does it tell you?
The extent to which the results can be reproduced when the research is repeated under the same conditions.
**How is it assessed? **
By checking the consistency of results across time, across different observers, and across parts of the test itself.
How does it relate to validity?
A reliable measurement is not always valid: the results might be reproducible, but they’re not necessarily correct.
What is margin of error?
The margin of error in statistics is the degree of error in results received from random sampling surveys. A higher margin of error in statistics indicates less likelihood of relying on the results of a survey or poll, i.e. the confidence on the results will be lower to represent a population.
The acceptable margin of error usually falls between 4% and 8% at the 95% confidence level.
What is a descriptive data/metric?
Phase of experience: During
Type: Factual
Description: What actually happened? Operational data.
Examples: Call hold time, resolution time
What is a perception data?
Phase of experience: After
Type: Opinion
Description: What customer percieved happened? what the customer says about the experience
Examples: CSAT, CES, NPS
What is an outcome data?
Outcome data is what customers did (buy, rebuy, recommend, etc.), as a result of their perceptions (we can see it).
Phase of experience: After
Type: Factual
Description: What happened as a result? what the customer did as a result of the experience
Examples: Churn Rate, Actual Purchase Made
What is prescriptive analytics?
It informs you how to make it happen. Prescriptive analytics tells you how to make it happen. This is like a doctor’s prescription, telling you how to solve your challenge.
What is key driver analysis
Key drivers are major contributors to customers’ behaviors, and accordingly, to financial growth.
Key driver analysis (KDA) is also known as correlation analysis. It correlates each factor contributing to customer experience versus the loyalty index. CX indexes are connected to financials (likely to rebuy, likely to recommend, overall satisfaction, customer health, customer effort, etc.).
What is leading indicator
Leading indicators are only what you can see before your customers experience it.
leading indicator is what you’re seeing that customers will soon experience. It’s a faulty filter within a process workflow that is causing poor performance to be experienced by customers. It’s the root cause of a “vital few” contributor to a key driver of loyalty.
A CX leading indicator is identified through 5 why’s analysis
[Market share, churn, and shopping carts are visible to you only after customers have behaved a certain way. Since none of these precede customer behavior, they are lagging indicators, not leading indicators.]
What is correlation coefficient
Correlation coefficients show the degree of alignment between customers’ ratings for separate CX factors versus loyalty. It’s most important to work on what’s tied closely to loyalty. So, The best way to identify importance or prioritization is correlation coefficient
What is 5 why’s analysis
5 why’s reveals the ultimate actionable cause of customers’ financial behaviors with your brand: process problem, input problem, and/or engagement problem.
What is stated importance?
Asking respondents to rate the importance of a series of factors on a scale (i.e., aspects of their customer experience). This is a quick and easy way to get a sense of what factors are most and least important to respondents. Respondents tend to exaggerate the importance of factors when directly asked. The answers here reflect what is top-of-mind important. Don’t count on each respondent to take everything into consideration when rating the importance of a factor.
What is derived importance?
Derived importance allows you to tackle the same objective without directly asking the respondents what is important. It starts with respondents providing an overall rating for their: Satisfaction, Likelihood to repurchase, Likelihood to recommend and other similar metrics. Next, respondents rate their satisfaction with a series of factors by the same scale. A correlation analysis is then conducted to identify relationships between the overall satisfaction metric and each individual factor from their experience.
What is confidence interval?
**% Likelihood a data point is accurate. **
1 minus margin of error = Confidence Interval
Confidence interval = the margin of error, or the percentage likelihood that a data point is accurate, or the number of times the data point would be true if you repeat your study 100 times
What is CX vs XM?
CX is what customers experience
XM is what YOU DO to understand and meet customers’ expectations
Who are your customers?
Everyone who has a role in the
(a) decision
and/or
(b) action to get something from you
and/or
(c) use of it
What is defined as poor experience
When the reality is less than the expectations. This is a bran integrity gap
What is defined as good experience
When the reality matches the expectations. This is a bran integrity 1:1 ration - no gaps
Overall purpose of XM
closing overall gaps between reality and expectations in the end to end journey with the brand
what Jobs to be done are?
What a customer is “hiring” the company’s solution to for them
North Star meaning
Basis for every decision and action: why customers are hiring the company’s solution. Jobs to be done should be company’s north star
What is outcome-based selling
Outcome based selling: don’t sell the prodcut, sell the customer’s outcome
What are customer success outcomes
Customer success outcomes: ensuring the product achieves customers’ goals
Which is more important?
Expectations VoC or Reality VoC
Expectations VoC are more important, as they define the gap from reality we should focus on.
People have subconcious expectations and they automatically judge the solution of a company against these expectations.
what are sunk costs
Budget with no choice to re-allocate it.
What is value rescuing
Costs to reverse churn and offset churn. These are linear or exponential increase in sunk costs yearly
What is Right The First Time (RFT)
RFT is a concept of preventing or stopping issue occurance for everyone (FCR is only for Call Center, but RFT is across the company). This leads to linear or exponential savings yearly.
What is Touchpoint Managment?
Aims to reverse churn and offset churn. Touchpoints for example: customer support, customer success, CRM, Personalization, UX
It’s about maintain revenue
What is Experience Managment
Aims to make customers brand allies with referral and quick wins. Tools for doing so: NPS, Journey Mapping, CX Design, Loyalty Incentives, Digitalization
It’s about expanding revenue
What is Experience Leadership
Aims to prevent value roadblocks and focuses on Lifetime Value. Tools: Expectations VoC, CX Annuities, Growth Inspired by CX, Efficiency Guided by CX, North Star = CX (Customers’ Jobs to be done)
It’s about aiding customers’ goals
Quick wins in context of CX
Ignore root cause of customers’ pains, and that means high costs and negative behaviours continue. These programs of quick wins might be useful for short term, but value less than what executives would expect.
Experience Excellence
Requires everyone in the organization to pay attention to expecations VoC and reality VoC. If this is guided by the north star, gaps are closes, revenues are growing and everyone’s happier. In order to acheive expereince excellence - passion and collaboration are essencial
What are 6 A’s of XM success?
- Ask = reserach about the jobs to be done and share VoC with every work group in the org
- Absorb = connect the VoC to the hearts and minds, use the jobs to be done for this
- Adopt = create a sense of urgency to close the north star gaps
- Apply = adjust workflows to close the gaps at the root cause level
- Account = establish consequances for following through
- Applaud = celebrate progress and collaboration
What is Experience Intelligence
It’s patterns show up in VoC
Where should Expereince Improvement & Innovation drives from?
It should derives from experience intelligence and life time value approach, to close gaps between realities and expectations
Internal Engagment and External Engagment
The internal engagement is to engage employees to the CX efforts on closing gaps for customers.
External engagement is to engage customers above and beyond what they already paid (fair market value) for the product, solution or service they get from the company.
What is Xm Maturity?
The entire flow should happen in order to declare of XM Maturity
What is Customer-Centric XM
What is CX ROI?
Strategic ROI
Lagging Indicators vs. Leading Indicators
In Lagging Indicators the “train has already left the station” and it’s out of our hand (so we can only fix)
In Leading Indicators the “train is still in the station” and we can prevent what’s about to happen before the customer experience it.
What is Customer Lifetime Value? (CLV or LTV)
Lifetime value is the goal.
Revenue minus Cost (=profit), for the duration of the relationship customer has with the company.
It is a cumulative profitability.
What is CX Design (vs. Design Thinking)
Design Thinking is solution-focused. CX Design starts with a goal of a better future situation, considering both present and future conditions and exploring alternative solutions simultaneously. We use Agile it it.
What is True CXM according to the CXPA?
See in the picture the 4 elements of true CXM
1) Customer Centricity Culture
2) Holistic Alignment of Systems & Structures
3) Evolution of Business Practices Through a Focus on Customer Needs & Engagment
4) The Realization of the Rewards
