The aviation industry’s debate over measuring customer satisfaction highlights the need for standardised methods in measuring customer experience. For instance, there’s an ongoing debate within the aviation industry, notably exemplified by Ryanair, about how we measure customer satisfaction. While Ryanair claims a 52% satisfaction rating, PA Consulting rates them even lower. In contrast, Rate My Trip boasts an impressive 92% satisfaction rating. The disparity in these figures highlights a fundamental issue: the lack of standardised criteria for measuring customer satisfaction across sectors.
Challenges: Inconsistencies in Measuring Customer Experience
The challenge lies not only in the differing criteria but also in the way these measures are weighted. Price-related factors often dominate these assessments, leading to a skewed representation of overall customer satisfaction. This lack of consistency stems from organizations defining customer satisfaction according to their motives, creating a subjective metric.
This problem isn’t unique to Ryanair. Many insight managers dispute the criteria used by others to evaluate their performance. If customers were asked about their criteria, the responses would likely vary widely, reflecting the diverse factors influencing satisfaction.
However, customer satisfaction, often presented as a sign of business profitability, has proven to be an unreliable indicator, according to studies by Prof. Dr. Phil Klaus, a renowned expert in customer experience. The disconnect between satisfaction and actual profitability challenges the conventional wisdom that higher satisfaction equals higher profits.
While measuring customer sentiment is valuable, it falls short in capturing behavioural changes, a more reliable indicator of customer experience. Behaviour-based metrics provide tangible insights into customer actions and decisions, making them a more accurate measurement of customer experience impact.
The Need for a More Reliable Metric: Enter EXQ
Experience Quality Measure (EXQ) emerges as a groundbreaking alternative, offering a 90% accountability of what drives customer decisions. Unlike conventional metrics like CSAT and NPS, EXQ delves deep into 25 key drivers out of 300, providing a nuanced understanding of customer preferences and decision-making processes.
- Identifies Crucial Customer Experiences: Pinpoints experiences that significantly influence customer decisions.
- Highlights Key Drivers: Focuses on 8-9 drivers constituting 66% of decision-making, aiding strategic decision-making.
- Reveals Insignificant Experiences: Identifies experiences with minimal impact, allowing cost-saving opportunities.
- Enables Comparative Analysis: Offers cross-border comparisons, facilitating global customer insights.
- Backed by Academic Research: Based on award-winning academic research, ensuring reliability and accuracy.
- Study-Based, Not Tech-Reliant: Delivered in 6 weeks without dependence on tech platforms, comparable to a few focus groups in cost.
Why EXQ works
In EXQ studies conducted globally, we’ve discovered that customer priorities often differ significantly from a company’s marketing focus. This disparity raises a pivotal question for businesses: adapt to these insights, make strategic changes, or ignore them and risk future challenges.
EXQ, although not for the faint-hearted, is a transformative tool for CX enthusiasts. Studies reveal that companies embracing EXQ achieve a remarkable 600% ROI from their CX efforts, although only 3% reach this pinnacle.
For a detailed exploration of EXQ and how it can reshape your CX strategies, contact Christopher Brooks at Lexden to discover how, within six weeks and at a fraction of the cost of traditional methods, you can gain a profound understanding of what truly matters to your customers and drives your bottom line.
When measuring CX, it’s not just about customer satisfaction. It’s about understanding what influences customer decisions and how those decisions impact your profitability. EXQ provides the clarity needed to transform your approach to customer experience, aligning your efforts with what truly matters to your customers.