S3 E4: “PAYING FOR GOOD” PODCAST ON ‘Customer metrics and bonuses’ with Manuela Pifani, Customer Experience Specialist

“Are you a detractor or a promoter?”

11th FEBRUARY 2021

The likelihood is that, over time, you have probably been both a detractor and a promoter, which I will explain below. But before we get to that, let me introduce this week’s guest on my ‘PAYING FOR GOOD’ podcast.

We’re with Manuela Pifani, Customer Experience Specialist, looking at customer metrics and how they link to bonuses. These metrics fall under the ‘S’ category of ESG (Environmental, Social and Governance factors). They are also among the most popular criteria when it comes to Responsible Reward, the integration of remuneration and sustainability.

But what are we measuring exactly?

It’s very common nowadays to be asked for feedback on our customer experience of a particular good or service. The ratings available typically range from 0 to 10. Scores below 6 are from ‘detractors’ and scores of 9 or 10 are from ‘promoters’ of the organisation. So, next time you’re asked to provide feedback, think carefully because the difference between an 8 or a 9 could impact someone’s bonus!

The best-known customer metric is the Net Promoter Score (NPS), which measures both our customer experience and our perception of a given organisation. Our experience starts from the moment we’re shopping around, followed by the transaction itself and then exiting the buying process. Our perception of an organisation may be affected by its prices, brand, reputation, sustainability agenda and other factors. The NPS is the difference between promoters’ and detractors’ scores.

Customer feedback is collected either directly by the organisation or through independent third parties. In the latter case, it’s usually available for all to see. I nearly always read reviews before making a purchase, and I find it fascinating how much I trust the judgements of people I don’t even know. Such is the power of ‘social proof’!

In this episode of the podcast, you will learn from Manuela about:

• the various types of customer-related metrics
• what the ‘customer journey’ actually is
• how to integrate these metrics into bonuses

[This episode was recorded when Manuela was at CXellence.]

Like me, Manuela advocates linking variable pay and customer-related metrics. As some firms set NPS targets as part of their bonus scorecards, it’s important to determine how each department can affect customer experience and perception, and tailor key performance indicators (KPIs) accordingly.

Your action takeaway:
To improve the customer experience, Manuela advises adopting the following five-point approach:
• Measure the customer experience.
• Measure the outcomes from the customer’s point of view.
• Determine how each part of the organisation can improve the customer experience.
• Measure progress over time.
• Put an action plan together to improve.

As always, if you have any questions on the topic of Responsible Reward, feel free to email me at client.care@peoplenet.ltd.uk or book an introductory call here.