Stat of the week: What does success look like?
Previously, on 'stat of the week'
We've covered some provocative stats pulled from the Aveus study Finding the Performance Payoff in Customer Experience. I shared that whether (or not) an organization has a well-understood definition of customer experience is such a strong indicator of performance that we used it as the primary distinction in the findings. For fun and for clear reference, I called these groups “Haves” – those that have a definition that everyone in their organization understands – and “Have Nots” - those that, well, you get it.
What does success look like?
This week's stat is all about outcomes. We asked leaders to tell us the metric their organizations most often point to as evidence of success.
It seems logical – even obvious – to assume that profit or shareholder return in some form would be any organization’s definition of success. Yet the "OF COURSE it's profit" reaction I expected to have when looking at these findings didn't match the reality of what I saw.
Haves were singular in their measure of success. The distance between profit and customer service as #1 and #2 choices was substantial.
Have Nots are different. They use revenue growth and profit as outcome measures on an equal basis. Since we learned earlier that Haves are twice as likely to beat their profit targets, this bifurcated focus for success seems to drain more than it strengthens performance for these organizations. Ow.
The back domino
The primary outcome for which an organization strives is just that – it is an outcome. Organizations don’t do profit. They make decisions and take actions that one by one over time result in profit.
An analogy is helpful here: imagine a line of dominos, stood carefully on their ends in a defined line. An organization’s primary desired outcome is its back domino, falling when movements in front of it are done well. We call this result metric “the back domino.”
What's your back domino?
A blissfully twisted career path and a passion for the link between customer experience and financial performance. Gets excited when actions align to a target experience "front domino." More about Linda.
Customer experience can drive better financial returns. Leaders tell me that they know this intuitively, but need proof of the payoff, as well as a map showing how to translate a target experience into the actions across their organizations that generate those returns. So Domino is the first how-to book on customer experience. Read and find evidence that customer experience can be a path to better profits. See the gaps and opportunities between the customer experience you have and the one you want. Provoke conversations in your team, area or whole organization about the actions that link customer experience to the financial reward you deserve. Learn more.