Richard Snow's Analyst Perspectives

Is NPS the Best Measure of Customer Experience?

Posted by Ventana Research on Jul 29, 2015 8:24:16 AM

Recently my colleague Tony Cosentino wrote an analyst perspective asserting that big data analytics will displace net promoter score (NPS) for more effectively measuring the entire customer experience. This prompted a response from Maxie Schmidt-Subramanian, asserting that big data and NPS aren’t the only ways to measure customer experience success. The main point of Tony’s piece, as I interpret it, is that NPS is just a number, but big data analytics can reveal much more about customer behavior and intentions, and it can link these to business outcomes. On the other hand Maxie argues that whether or not companies use NPS, when it comes to measuring the customer experience, they rely too much on surveys and no one metric does the entire job. While to a large extent I agree with both arguments, from a business perspective I don’t think either addresses three very important questions. The first is what actually is the customer experience? Second, how should it be measured? And third, what is the best use of big data in relation to customer experience?

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Topics: Social Media, Operational Performance Management (OPM), Business Analytics, Business Collaboration, Cloud Computing, Business Performance Management (BPM), Call Center, Customer Performance Management (CPM)

New Generation of Recurring Revenue and Billing Inspired from Cloud Computing

Posted by Richard Snow on Jun 22, 2014 10:59:07 PM

Much has been written about how cloud computing changes the way businesses source their software and services. For software companies, instead of being installed inside the company, software like business applications run on a computer installed at an external site. If the external site is not shared with any other business, this is called a private cloud; if it is owned and operated by a third party and supports more than one business, it is called a public cloud. In the case of public clouds, users access the applications via the Internet, and increasing they can do this while out of the office, using laptops or mobile devices like smartphones and tablets. The main advantages of this model are that companies don’t need to invest in hardware or support staff to install and maintain hardware or software like these applications, the vendor handles system updates and users can work anywhere (including on the move) by logging in through a Web browser or an application designed specifically for mobile technology. Our research confirms that the overall importance is overall important in more than half (57%) of organizations.

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Topics: Social Media, Customer Analytics, Customer Experience Management, Customer Feedback Management, Operational Performance Management (OPM), Social CRM, Speech Analytics, Voice of the Customer, Mobile apps, Self-service, Cloud Computing, Collaboration, Customer Service, 360-degree view of the Customer, Agent Performance Management, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Desktop Analytics, Financial Performance Management (FPM), Sales Performance Management (SPM), Text Analytics, Unified Communications, Workforce Force Optimization

Customer Analytics Research Reveals Required Capabilities for Software

Posted by Richard Snow on Mar 29, 2014 9:52:42 AM

Our recently released research into next-generation customer analytics shows that the most participants (52%) use spreadsheets as a customer analytics tool. I recently wrote that while these popular tools are adequate for some tasks, they are not suitable for analyzing large volumes and many types of customer data. So I think it is appropriate that one in four (26%) participants have adopted a dedicated customer analytics tool and a further 29 percent are planning to invest in such a tool in the next 24 months.

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Topics: Social Media, Customer Analytics, Operational Performance Management (OPM), Speech Analytics, Voice of the Customer, Business Analytics, Business Collaboration, Cloud Computing, 360-degree view of the Customer, Business Intelligence (BI), Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, Customer Performance Management (CPM), Desktop Analytics, Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Text Analytics

Customer Analytics Deserve More Than Spreadsheets

Posted by Richard Snow on Mar 7, 2014 8:24:32 AM

I recently completed two closely related benchmark research reports, on next-generation customer engagement and next-generation customer analytics. The  research on customer engagement shows that companies on average engage with customers through seven or eight communication channels and that almost every business unit except IT engages with customers. To provide customers with personalized, in-context and consistent experiences across these channels, companies need an up-to-date, complete view of their customers that gives those who interact with them the information they need to decide how to respond. However, the customer analytics research shows that the majority of companies don’t have access to such information and analysis. The most common analytics tool for more than half of companies is spreadsheets in 52 percent of organizations. Although spreadsheets meet individual users’ needs for ad-hoc analysis, they are inadequate for enterprise processes such as customer analytics. Almost three-fifths (57%) of companies in the research said that using spreadsheets makes it difficult to produce accurate and timely customer analysis.

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Topics: Customer Analytics, Customer Experience Management, Operational Performance Management (OPM), Speech Analytics, Voice of the Customer, Business Analytics, Governance, Risk & Compliance (GRC), 360-degree view of the Customer, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, Customer Performance Management (CPM), Desktop Analytics, Information Management (IM), Text Analytics

Customer Engagement in 2014: Agenda for Delivering Best Customer Experience

Posted by Richard Snow on Jan 15, 2014 9:54:16 AM

In 2013 we continued to see change in the contact center, customer service and customer experience markets: Consumers’ communication habits continued to evolve, more business units outside the traditional contact center became involved in handling interactions, software vendors continued to come up with new technologies, and cloud computing, mobility, big data, collaboration, social media and analytics all had a big impact on the ways users access and consume software. Many of these trends surfaced in my benchmark research on next-generation workforce optimization and next-generation customer engagement. Overall my research shows that organizations are slowly maturing in terms of the people, processes, information and technology they use to support customer engagement and related customer-facing activities. However, it also shows that many of the old issues have not gone away and that companies still have work to do to meet customer expectations and achieve their business goals.

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Topics: Social Media, Customer Analytics, Customer Experience Management, Customer Feedback Management, Operational Performance Management (OPM), Social CRM, Speech Analytics, Voice of the Customer, Mobile apps, Self-service, Business Analytics, Business Collaboration, Cloud Computing, Collaboration, Customer Service, 360-degree view of the Customer, Agent Performance Management, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Desktop Analytics, Sales Performance Management (SPM), Text Analytics, Unified Communications, Workforce Force Optimization

Companies Struggle to Engage with Customers Digitally

Posted by Richard Snow on Dec 11, 2013 8:45:32 AM

If you stop to compare communication preferences of the past to those of today, you can’t fail to notice some major changes, especially in younger generations. Talking on the phone – fixed or mobile – is in decline, as many people now prefer text messaging, chat and social media. We rely on the Internet to search for websites, run mobile apps and use social media. We watch less TV in real time, preferring to watch what we want, when we want to watch it and to skip advertisements. The same applies to newspapers, with many people preferring to have the news they want to see downloaded to their smart devices. Today, any email from someone we don’t know goes straight to the junk mail folder, and writing seems to be becoming a lost art. This is the world of the digital customer. Companies have to support digital customers while continuing to support others who still make phone calls, send email and even write letters. According to my research into next-generation customer engagement, most companies are not yet prepared to meet the expectations of digital customers.

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Topics: Big Data, Social Media, Customer Analytics, Customer Experience Management, Operational Performance Management (OPM), Speech Analytics, Analytics, Business Collaboration, Cloud Computing, Customer Service, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Sales Performance Management (SPM), Text Analytics

Failure in Agent Workforce Optimization Adoption Plagues Customer Interaction

Posted by Richard Snow on Dec 5, 2013 7:39:39 AM

Ventana Research defines workforce optimization as a set of processes and technology for customer agents that include interaction (call) recording, quality monitoring, workforce management, training and coaching, compensation management and analytics. My benchmark research into next-generation workforce optimization set out to discover the people, processes, information and systems companies are using to get more from their customer service agents, the benefits they have gained, their plans to change and the barriers holding back those changes. Our research projects apply the Ventana Research Maturity Model™ to evaluate the maturity of organizations in a given market or with respect to a business or IT process. In this case our analysis shows that based on current practices nearly half of companies are at the lowest Tactical level of maturity and only 13 percent have reached the highest Innovative level. Closer examination of the results shows that companies are least mature in their use of technology for workforce optimization, with half at the Tactical level. Much has changed in the way companies handle customer interactions. Two of the biggest changes I have seen in various research are that companies now support more channels of communication and more employees around the organization are involved in handling interactions, meaning companies need to review their workforce optimization systems and begin to take advantage of these advances. Yet the research shows that most of them aren’t yet doing that.

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Topics: Social Media, Customer Experience Management, Operational Performance Management (OPM), Analytics, Business Analytics, Business Collaboration, Cloud Computing, Customer Service, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), workforce optimization

Infor Aims to Reinvent Business Applications

Posted by Richard Snow on Nov 6, 2013 8:20:24 AM

Infor is a vendor I haven’t covered much in the past, but after attending the recent Infor on the Road day in the U.K. that is about to change. I viewed Infor as basically a CRM vendor, and I don’t believe such systems have much impact on customer engagement and the customer experience. Indeed if you view Infor website’s product page, it features several product categories focused on internal processes: CRM, Asset Management, Financial Management, Resource Planning, Human Capital Management and Product Management. (By the way, my colleague Robert Kugel wrote about some of these after his visit to Inforum.) If like me you are not technically minded, you might skip the technology section, which is where Infor showcases innovation in business applications.

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Topics: Big Data, Customer Analytics, Customer Experience Management, Speech Analytics, Analytics, Business Collaboration, Cloud Computing, Customer Service, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Text Analytics, Workforce Performance Management (WPM)

IBM Social Business Bets on Key Application and Technologies

Posted by Richard Snow on Oct 24, 2013 8:23:57 AM

I recently attended an IBM event about its new social business products and services. I was skeptical at first: I have seen another vendor’s “social enterprise” come and go, and although companies need to address customer use of social media, I don’t think “social” is the path businesses should take; it is more to do with collaboration. However, I quickly learned that IBM sees things rather differently. Its starting point is the need for companies to make their workforces smarter – something I agree with. Employees are the heart of a company; for example, according to my research into customer service and the agent desktop, not only do happy, empowered employees twice as often deliver superior customer experiences, but they also meet customer-related targets more often, and deliver or retain more satisfied and more loyal customers who spend more.

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Topics: Big Data, Customer Analytics, Customer Experience Management, Customer Feedback Management, Operational Performance Management (OPM), Speech Analytics, Self-service, Analytics, Business Collaboration, Cloud Computing, Customer Service, Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Financial Performance Management (FPM), Text Analytics, Workforce Performance Management (WPM), Agent desktop, unified communication, virtual agent, voice of the customer (VoC), workforce optimization

ResponseTek Goes Mobile for Customer Insight

Posted by Richard Snow on Sep 21, 2013 8:30:10 AM

ResponseTek is a well-established player in the marketing and customer feedback markets. It has four products that cover market research, customer feedback, knowledge management and media monitoring,  that enable companies to capture comments made on public sites, typically social media-based. Its customer feedback products support creation, collection and analysis of feedback through multiple channels, as I have noted, including mobile devices. ResponseTek has now taken its support for mobile one step further with the recent announcement of a mobile app.

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Topics: Customer Analytics, Customer Experience Management, Customer Feedback Management, Speech Analytics, Self-service, Analytics, Business Analytics, Cloud Computing, Customer Service, Business Intelligence (BI), Business Performance Management (BPM), Call Center, Contact Center, Contact Center Analytics, Customer Performance Management (CPM), Text Analytics, voice of the customer (VoC)