The CX Index – The well-kept secret of the customer experience (Part 5: Composition and operationalization)
Previous blogs :
- Part 1: The Customer Experience – Hell is other people!
- Part 2: What the customer experience is… not!
- Part 3: The CX Index: The well-kept secret of the customer experience
- Part 4 : The CX Index – The well-kept secret of the customer experience – Characteristics and advantages
In the last blog, we looked at the notion that the importance of an indicator is not necessarily in its uniqueness but in the standard of quality that an organizations gives to it. This distinction becomes even more apparent when we consider that organizations serious about optimizing their customer experience use more than one CX indicator, each appropriate to their industry, market, and business environment.
A few examples of what make up a CX Index
Ideally, your indicator is a savvy combination of quantitative (numbers) and qualitative (according to levels of appreciation) data. Here are a few examples:
- Waiting time (on the phone, in a waiting line, etc.)
- Number of individuals in a waiting line or queue
- Time or delay before an individual is served
- Overall time it takes to complete the service
- Delivery delays
- Quality of the welcome
- Attitudes of the personnel at the reception area
- The flow of the waiting line
- Level of quality of staff’s dress, uniform, or appearance
- Level of cleanliness and hygiene of a particular area or space
Obviously, these criteria vary dramatically from one industry to the next. Great companies, devoted to optimizing their CX, use these criteria and standards throughout the organization and external communications.
When these indicators are used in conjunction with a system of qualitative evaluation, such as an audit or active observation, it allows for both a global and detailed view of the customer journey. The data gathered over time provides an overview of the overall customer journey allowing the organization to continually improving their CX performance.
Examples of the operationalization of an evaluation criterion
The final objective is to arrive at an index composed of a number, on a scale of 0% to 100%. The higher the number the better.
Each criterion contributes to the overall percentage number. Let’s take a hypothetical example of a qualitative and quantitative measure and see how both can be operationalized in the most objective way possible.
If we assume that all criteria are of the same importance and weight, we will have to give them the same evaluation level and grade.
By having evaluated a certain number of different criteria directly related to the customer experience, we can now calculate the overall CX performance.
In our hypothetical examples, the CX that was achieved was:
Using this formula, if we use 15 different criteria, each with a maximum point value of 5, the maximum number of points that could be obtained are 5 X 15 = 75.
If a monthly audit received 64 points, our CX Index would be of (64 / 75) * 100 = 85.3%. This could be considered as a good result in certain industries but low in others. Though industry benchmarks are interesting, it’s more important to compare these numbers to internal data and track progress over time on areas that consistently rank lower.
Of course we could go a little further to refine this analysis…
In the final blog of this series, we will look at how to concretely operationalize the CX Index with a real numbered example.
Your marketing facilitator,