Unraveling the Customer Science Paradox: The Power of Feedback and Aligning Compensation with Experience Metrics

By Eleanor Harrison Mar26,2024
The Importance of Customer Science for CIOs

Customer feedback has become increasingly powerful in today’s interconnected world. One example of this is Snapchat losing $1.3 billion in market value in a single day due to a tweeted complaint from Kylie Jenner. In 2016, US companies lost $1.6 trillion from customer switching due to poor service, showing the impact of customer dissatisfaction on businesses.

The paradox of customer science is that despite the common saying “Customer is King,” many organizations struggle to meet or exceed customer expectations. The role of positions like the chief customer officer or chief experience officer becomes crucial in addressing this paradox. Glenn Laverty, former president and CEO at Ricoh Canada, solved this paradox by tying every employee’s compensation to customer experience/satisfaction metrics.

It is important for organizations to measure and reward desired behaviors in order to align everyone’s compensation with customer experience metrics. For example, at Boeing, production throughput compensation metrics were prioritized over safety considerations, leading to unintended consequences. Customer science can help align everyone’s compensation with customer experience metrics in a calibrated and nuanced way.

Claes Fornell, founder of the American Customer Satisfaction Index, points out the data paradox in customer science. Despite the vast amount of customer data collected by organizations, they seem to know less about how to satisfy their customers. This disconnect between data collection and customer satisfaction needs to be addressed in order to truly understand and meet customer expectations.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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