Tuesday, October 1, 2019

Snail Mail: 'Artificial' Artificial Intelligence

Slow Ventures Snail Mail

'Artificial' Artificial Intelligence 

Tuesday, October 1, 2019

Welcome to another edition of Snail Mail! Today we are diving into human-computer systems and have a special event for you! 

Got forwarded this and want to subscribe? Go to https://slow.claims. 
🤔How to Choose CX Metrics that Drive Real Business Outcomes
by Laura Almeida

In this post, we'll examine some of the pitfalls of commonly used CX metrics today, and provide a framework for choosing metrics to drive real business outcomes.

As a CX leader, you want to create positive customer experiences for your company. But many CX leaders today are not equipped with good enough data or metrics to drive continuous improvement within their organizations. Traditional CX metrics fall short of quantifying the actual impact of CX initiatives, and as such, these initiatives are often overlooked.

Traditionally, the numbers that CX leaders are expected to drive have been things like "Are the customers happy?" and "Is the team running efficiently?" Measuring customer satisfaction and team efficiency are indeed critical, but often the metrics for these don't directly tie to ROI for the business.

What really matters to the business is customer LTV, customer retention, growing spend, etc. CX can, in fact, have a massive impact on these company-level metrics, but the leap between "Did the customer have a good experience?" to real LTV has historically been difficult.

How to Choose the Right Success Metrics

In order to drive success as a CX leader within your organization, you need to equip yourself, your line managers and your agents with metrics and targets that are attainable and impactful. There are three main properties that all good metrics have:

(1) The number is important to the business and clearly connected to its success
(2) The number is representative of things that are within your control
(3) The number moves fast enough that you can demonstrate day to day, week to week, and month to month the progress of your team

I'd like to use CSAT as one example of a metric which most leaders are using today, to evaluate these principles. CSAT can give you a relative temperature check of how customers feel about the quality of your support today versus a few months ago, but it can fail on all three of these dimensions.

First, CSAT may not actually connect to business goals. Have you quantified how CSAT impacts customer churn, LTV, or increased revenue per retained customer? If not, how do you balance the equation and understand how many dollars to invest in trying to boost CSAT 10 points?

By choosing CSAT as your target metric, you also run the risk of frustrating the individual agents tasked with driving it. CSAT can make sense as an organizational goal, as a greater volume of responses should wash out any variance in customer disposition across agents, but it may not be suitable as part of the individual agent scorecard. It is a subjective customer perspective, which can often have more to do with whether the customer had a bad day, and not how well the agent did his or her job. CSAT is important to understanding how the customer feels about the company, but the individual agent is often many steps removed from that.

Lastly, there can be a real lag with CSAT, and you may need more direct measures of the efficacy of new policies, processes, and tools you are rolling out, that give you faster feedback with less noise. With big data, this is starting to get easier. You can begin to calculate how these things fit together in the longer term, but still CSAT doesn't tell you in a given month, or even a given quarter, how the work you're doing today is going to impact the company long term.

How can we align CX metrics with actual business outcomes?

The biggest opportunity for CX leaders will be moving to a world where every day you know if the changes you're making have a positive and demonstrable impact.

CX leaders today are getting a 'seat at the table' to the extent that they can prove the link between the work they're doing and real business metrics around profitability and retention. The next step is to connect the work of the CX team to a metric that changes quickly, and use it to goal your teams and see the impact of the work you're doing.

What's the next step for CX leaders?

Leaders need to set their teams up with metrics that are connected to the business, represent the work that is within the team's control, and that reflect the impact of changes quickly, both at an aggregate level and on an individual level.

For example, an organization may use Cost per Resolution as its team-wide, company metric, and at the agent level, measure Percent of Tickets Resolved (of the tickets you touched, what percent of them did you close out?) Each agent then has the opportunity to drive this metric with every ticket, while also driving down the Cost per Resolution for the team as a whole. Agents are able to own their performance and see the direct impact for the business.

This is just one example of a metric used to drive business outcomes. On the whole, the more you are able to precisely define the metrics that are under your control, and which also ultimately add up to customer satisfaction and increased customer LTV, the more impact you will have both as a leader to your team, and for your business overall.
🎟 AAI Conference 2019

On Thursday, October 10th, Slow Ventures, Fin and The Information are hosting an AAI Conference in SF. This event will be an afternoon focused on AAI (artificial artificial intelligence) and the idea of using hybrid human+computer systems to drive efficiency within an organization and improve the experience for both customers and employees.

To register, please see below or visit our website and use the Snail Mail code humanintheloop for free tickets! 

AAI Conference 2019:
  • When: Thursday 10/10 from 12:30pm - 5pm PT
  • Where: The Pearl SF @ 601 19th St, San Francisco, CA 94107 
  • Audience: About 200 people actively working, interested, or investing in AAI. 
  • Event Format: 25 minute group discussions featuring 2-3 panelists followed by drinks
  • Click here to register!
AAI Year In Review: A retrospective on what has changed in the last 12 months since our last gathering. What were some of the most impactful AAI innovations and how has the overall landscape evolved?

The State of Knowledge Labor: When and how can leaders determine whether to build labor in house, with BPOs, or through a cloud infrastructure? In this talk, we'll discuss how the business process outsourcing industry is evolving and where it will go from here.

The State of Operations Tools: An evaluation of CRMs, Salesforce Service cloud, Airtable, Zapier, and more. What types of tools are needed, finally good enough to use, and over-hyped for setting up AAI systems?

RPA and Automation: Robotic Process Automation is one area of AI that has proven real traction and product market fit, growing into a multi-billion dollar industry over the last ten years. RPA today is an oligopoly but how has the success of UIPath and Blue Prism opened doors and changed the public's perspective towards tools for automation?

Next Generation End-User Services: Bots, chat services, and conversational commerce have fundamentally shifted the way people interact with brands and customer service teams. What is the hype cycle around these technologies and what kinds of next generation services are on the horizon?

Measurement and Optimization Strategies: The future of operational quality and efficiency in AAI will be supported by continuous process measurement and big data. Given the complexity of measuring hybrid human + machine systems, what are the different strategies for optimizing AAI, what has worked, and what hasn't?

QA strategies & debugging people, process, and tools in AAI systems: Computers and code are much easier to debug than people. How can companies use data and analytics to mitigate both human and computer errors.

The Startup Path to the Future vs. Enterprise Modernization: The pros and cons as big companies try to modernize vs. new companies spring up. Is it easier to build AAI from scratch or incorporate it into existing systems?

Building consumer brands through modern CX and analytics: Learn how the next generation of consumer leaders drive LTV and retention through unique customer experiences, personalization, big data, & AAI.

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