Innovating Analytics (PDF)

How does a CEO, manager, or entrepreneur begin to sort out what
defines and drives a good customer experience and how it can be
measured and made actionable? If you know how well the customer
experience is satisfying your customers and you know how to
increase their satisfaction, you can then increase sales, return
visits, recommendations, loyalty, and brand engagement across all
channels. More reliable and more useful data leads to better
decisions and better results. Innovating Analytics is also
about the need for a comprehensive measurement ecosystem to
accurately assess and improve the other elements of customer
experience. This is a time of great change and great opportunity.
The companies that use the right tools and make the right
assessments of how to satisfy their customers will have the
competitive advantage.

Innovating Analytics introduces an index that measures a
customer's likelihood to recommend and the likelihood to
detract. The current concept of the Net Promoter Score (NPS) that
has been adopted by many companies during the last decade--is
no longer accurate, precise or actionable. This new metric called
the Word of Mouth Index (WoMI) has been tested on hundreds of
companies and with over 1.5 million consumers over the last two
years.

Author Larry Freed details the improvement that WoMI provides
within what he calls the Measurement Ecosystem. He then goes on to
look at three other drivers of customer satisfaction along with
word of mouth: customer acquisition, customer loyalty, and customer
conversion.