Wednesday, August 26, 2015

Client Experience meet 'MoneyBall'

If the Client Experience Journey can learn one thing from Moneyballit should be
that tracking the wrong metrics can be disastrous, expensive and lead to the wrong route
cause to why a business is failing.

For those of you that don’t know about the ‘Moneyball’ concept, part of the Oakland A’s
success arose because they turned away from conventionally accepted activity-
focused metrics (RBI, stolen bases and batting average) and turned towards success
metrics (on-base percentage).

Why am I comparing ‘Moneyball’ to the client experience journey?

As a business you have to start somewhere; however, I want to illustrate some things to go overlooked by many businesses daily.

Here are a two simple action items that can help get you started…from the time a business
receives a simple phone call:

1. Mean Time to Repair and Average Speed of Answer (ASA) – Many businesses
track trends in ASA.  The reality is that such a measure may lead to behaviors that
are unpredictable with a quality client experience and interaction (i.e. answering the
phone call quickly but immediately placing a caller on hold).  What matters more is
experience regularity.  So businesses would be better served to achieve smaller
variance around their average.  Once they tighten the bell curve, then entire
experience can be improved.  First make the experience predictable.  Customers
hate surprises as much as any business does.

2. Call Duration – Zappos put an end to the fallacy surrounding this metric.  Their
philosophy was to develop customer relationships (to achieve loyalty).  By
decreasing the call duration, Zappos realized they were limiting the likelihood of a
meaningful relationship.  Basically, “did we meet your expectations/needs?”  Not
“did we get off the phone fast enough?”  The first question addresses a customer
need while the second demonstrates a silo need for efficiency.

The ‘result’ is that, like the Oakland A’s, by adopting a method of client experience journey
metrics we are able to track, we can improve our winning percentage while reducing churn
and increase client retention.

Result = Higher Client Retention and less Client Acquisition costs.

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