Mystery Calculating Customer Value Revealed

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Mystery Calculating Customer Value Revealed

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Calculating customer value is one of the areas of focus in the 29 Quality Assurance Mistakes to Avoid e-book and self-assessment. The question asked, “Do you include the customers’ rating of being treated as valued in your quality process?”, gets to the root cause of the customers’ calculation of value. This e-book is designed to help you identify issues with your existing Quality Assurance Program by asking thought provoking questions, such as this, that will help you unlock the insights into how you are valued by customers.  Value is a two-sided coin. The side we are most familiar with is the internal financial models of calculating customer value; specifically what does a customer mean to the company in regards to revenue or cost? But value also has a reciprocal element where customers feel valued they will value you more. That is the focus of this story.

Grading agents’ ability to make the customer feel valued with an internal process is a poor method of calculating customer value

A key driver of consumer behavior is whether or not they feel that the company they are purchasing from values them as a customer. Consequently, consumers are going to purchase goods and services where they feel valued and avoid returning to places where they don’t. So if you aren’t asking consumers if they feel valued by your company, you are missing very important insights for calculating customer value. What are you doing to create brand loyalty? How do you know if all of the energy and resources that you dedicated to training your agents to help make the customer feel valued are actually working? Wouldn’t you like to know what the rate of return is on the investment you made in training? Sure you would. But if can’t measure it (or do it incorrectly), you can’t manage it.

Mystery Calculating Customer Value RevealedRecently I had an experience while out dining with my husband where the manager of the establishment went above and beyond to make us feel valued. He took the time to answer questions about ingredients and cooking methods in order to determine which foods wouldn’t pose an allergy risk. Not only did the manager answer all of our questions, when he wasn’t sure about something he went into the kitchen and returned with ingredients so that we could read the labels ourselves. Talk about feeling valued! Never once did he roll his eyes, sigh or in any other way imply that we were a bother or that he didn’t have time to deal with this. Even better was that the great level of service didn’t stop with the manager.  Our waiter was equally as friendly and helpful. Because of the great service that definitely left us feeling like valued customers, we have taken several people back and encouraged all of our friends and family to try them. Although we drive past no less than 25 restaurants on our way to that one, we never once consider stopping at the others – even though they are likely less expensive. Like most customers, we want to spend our money where we feel valued. If they are calculating customer value, this type of service delivery would be considered a significant asset for their business.

Do you think many of your customers are ‘driving’ past your competitors in order to get to you? What are you doing to set your company apart from the pack? Sure, you have training classes that teach the agents how to offer good customer service; however, how will you know if that is the right training? Do they fully comprehend the importance of applying that training to their interactions with the customer?

The Solution

The Impact Quality Assurance (iQA) method is the solution. Implement a well-designed External Quality Monitoring (eQM) program that allows you to ask the customer how they feel about their experience with your company and use this for calculating customer value; coupled with a well-defined Internal Quality Monitoring (iQM) program that is targeted to company policies and guidelines, product, and other key variables.

customers-grade-the-callsIt’s vital to know that nobody but the customer himself can tell you whether or not they feel valued as your customer. Anything short of asking them is setting your company up for failure and is an ineffective way of calculating customer value from the customer perspective. The customer responses will not only answer the question about how valued the customer feels today; over time they will help you identify best practices and areas of opportunity within your operations. By quantitatively assessing how valued the customers feels and capturing customer comments for analysis, you will be able to pinpoint specific teams or individual agents who could benefit from coaching and quickly determine if a process change impacts customer sentiment and take the appropriate action to rectify it.

Put an end to wasting valuable time, money and energy trying to guess how a customer feels. Apply those resources toward implementing an effective iQA process that will better serve you with calculating customer value, so your service can be a greater asset.

About Jim Rembach

Jim Rembach is a panel expert with the Customer Experience Professionals Association (CXPA) and an SVP for Customer Relationship Metrics (CRM). Jim spent many years in contact center operations and leverages this to help others. He is a certified Emotional Intelligence (EQ) practitioner and frequently quoted industry expert. Call Jim at 336-288-8226 if you need help with customer-centric enhancements.

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  • Ala ud din Jutt

    Nice post. I like it. This is helpful for me.