Customers First (Part 3)
Following Loyalty Measurement
Link customer loyalty and commitment to business outcomes. Decide whether to measure your engagement outcome by satisfaction, the chance of making a purchase again or the probability of recommending to others. Link your measures with business outcomes like shareholder returns, annual growth of sales, gross margin, market share, cash flows. Understand that changes in loyalty/engagement scores normally precede changes in business outcomes.
Use results to forecast future loyalty. Analyze data using statistics to show the most important areas of focus. Acknowledge that the major areas of focus may change in relation to changes in economic, competitive and demographic settings.