Customer Experience Dashboard Best Practices

Summary

  • You can't manage what you can't measure. That's why a customer experience dashboard is needed to bring real-time visibility to the most important drivers of customer experiences (CXs) and company outcomes.
  • Good CX dashboards take a less is more approach. They focus on fewer metrics to drive more action. Experienced analysts know that adding more measures clouds what's most important and quickly results in diminishing returns. They also know that the human brain can only comprehend up to 5 data points at a time. So, they separate the vital from the inessential and display the highest impact performance measures that are mostly likely to induce action.
  • The best dashboards permit real-time predictive modeling to show how changes in customer interactions impact the customer's experience and company's margins and profits.
Johnny Grow Revenue Growth Consulting

An IDC research report found 87 percent of companies say they provide excellent CX, but only 11 percent of customers agree. This misunderstanding can be remedied by using dashboards to measure the CX.

The goal of a customer experience dashboard is to put the spotlight on the drivers that most impact the CX. Below is a proprietary dashboard we routinely use with clients.

Customer Experience Dashboard
Customer Experience Dashboard

Three best practices contribute to delivering the information that most impacts performance

1

First, measure what matters, not what's easy

Customer experience analytics only work when they direct the users' attention to the highest priorities.

There are many key performance indicators (KPIs) but one of the most important is customer lifetime value. CLV measures customer health, and by extension forecasts the company's health. When CLV is viewed by customer segment it shows how increasing investment or services in high value segments will increase revenues and margins, or how lowering cost to serve can reduce unprofitable customers or transactions.

I often get asked how many metrics should be included on a dashboard. The answer is always the same, as many as will get acted upon.

2

Second, put information in context

KPIs deliver greater understanding when they include relative values or comparison points. For example, showing performance metrics alongside industry benchmarks can be an eye opener.

No business operates in a vacuum. Businesses compete. When you outperform competitors, you gain market share. When you underperform, you lose market share. Knowing where you stand relative to top competitors is essential for business growth.

Customer Experience Dashboard Benchmarks
Customer Experience Dashboard Benchmarks

Also recognize that customer experience metrics are not standalone. The greatest context and information understanding is achieved when you show how KPIs roll-up and impact each other. It's this level of reporting that shifts information visibility from hindsight to foresight.

Customer Experience Predictive Model

The above predictive pyramid enables real-time predictive modeling to show how changes in behaviors or actions impact business outcomes. It uses forward looking analytics to show the financial impact of both action and inaction.

3

Third, make the information actionable

Sir Francis Bacon is generally credited for the phrase, "knowledge is power". I would suggest that knowledge is not power unless it is acted upon. Power is created from action, not visibility.

Simply creating a list of KPIs to display in a dashboard falls short of inducing action. However, when KPIs are aligned with objectives, linked to actions and measured by payback, information goes from being interesting to creating value.

Metrics are made actionable with alert notifications, drill-down analysis, predictive analytics and links to next best experiences, guided actions or real-time recommendations.

Action is significantly enhanced when dashboards shift from lagging to leading indicators. When KPIs can model future performance, they become extremely actionable. They shift visibility from where you have been to where you are going. It's the difference between looking in your car’s rearview mirror or through the windshield.

The dashboard should deliver line of sight information to those who need to be informed. But the point here is that the goal of dashboards isn't to view data, it's to act on data to improve a CX or a business outcome.

The KPI isn't the goal. It's a recommendation for action. Action is the goal.

Dashboards often display what is easy instead of what is important. For example, they display indirect and lagging measures rather than the leading indicators that forecast the most important results. This is common in dashboards focused on internal process measures rather than customer measures which are more linked to business outcomes.

This often occurs because the customer and business outcome measures don't exist in the CRM system. Key metrics such as customer satisfaction (CSAT), customer engagement (AES), customer lifetime value (CLV), customer retention, voice of the customer (VOC), customer sentiment, customer insights, RFM (recency, frequency, monetary), customer loyalty, customer health scores are many more are either not implemented or not available in the out of the box CRM software application.

That's why research shows that CRM dashboards achieve 30 percent utilization following a CRM software implementation go-live, but within 3 weeks that utilization falls to 9 percent. Over time it falls even further. The decline is due to dashboards not providing real help to users.

The remedy to this challenge is to create the essential customer performance metrics in the CRM system. Fortunately, most CRM apps have the tools to make this a fairly straightforward process.

By inserting the most important metrics you empower users to take action that improves customer and company results. You will know the dashboards are working if staff are using data to change their behaviors and the company's business processes.

Here's the Rub with CX Dashboards

Dashboards often display what is easy instead of what is important. For example, they display indirect and lagging measures rather than the leading indicators that forecast the most important results. This is common in dashboards focused on internal process measures rather than customer measures which are more linked to business outcomes.

This often occurs because the customer and business outcome measures don't exist in the CRM system. Key metrics such as customer satisfaction (CSAT), customer engagement (AES), customer lifetime value (CLV), customer retention, voice of the customer (VOC), customer sentiment, customer insights, RFM (recency, frequency, monetary), customer loyalty, customer health scores are many more are either not implemented or not available in the out of the box CRM software application.

That's why research shows that CRM dashboards achieve 30 percent utilization following a CRM software implementation go-live, but within 3 weeks that utilization falls to 9 percent. Over time it falls even further. The decline is due to dashboards not providing real help to users.

The remedy to this challenge is to create the essential customer performance metrics in the CRM system. Fortunately, most CRM apps have the tools to make this a fairly straightforward process.

By inserting the most important metrics you empower users to take action that improves customer and company results. You will know the dashboards are working if staff are using data to change their behaviors and the company’s business processes.

 


That’s the sign of successful dashboards. If the information is causing operational changes to be made, it's working.


 

See how Customer Experience Dashboards drive improved customer experiences and company outcomes when they adopt 3 essential best practices.

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