How the Client Experience Defines the New ROI of Social Business – Finally, A New KPI in the Making

5 thoughts on “How the Client Experience Defines the New ROI of Social Business – Finally, A New KPI in the Making”

  1. Hi Luis
    Thank you for such an interesting and informative blog – including your CMSWire article! A great read!
    I have to agree wholeheartedly that we need to avoid “ measuring the low hanging fruit” and that “Measuring the usage of social technologies at the workplace is far easier than the significant impact on the overall business outcomes”

    Leaving internal cultural transformation aside for one moment, how do you prove that an engaged enlightened work force = greater revenues in real terms?

    You give TELUS as an example with its proven successes – but what about other influencing factors that could affect revenue increases during the same period of the measurement? E.g
    – improved sales training and techniques
    – improved HR initiatives to promote talent where it is needed
    – cost cutting
    – disposals/acquisitions
    I could go on…
    What was the criteria used to measure the increase in revenue over a given period and how was it correlated to employee engagement? And what kind and what level of engagement was measured?
    Let us take “collaboration” as an example. Can one demonstrate that this particular focus of social technologies increases revenue? Everyone who uses social technologies knows the great impact internally and how it has transformed the work place but given that not all the work force are ever engaged and those that are, are not always engaged as “active contributors” in the collaborative process – how can we correlate real figures of collaboration with real increase in revenue? How do you measure behaviours rather than the tools that enable it?
    Everyone wants the employee experience improved (no question) and through it the customer experience (no question)– but have we yet proved that it increases revenue over a sustained period of time and what measurement criteria have we used to prove it? Where is the high hanging fruit located?

    You must know Luis that I’m merely “thinking out loud” in my attempt to answer these questions – and get down to the “real action” –
    I stand in admiration of you and Dan Pontefract and what you both contribute to the debate.

    Thank you for a wonderful and thought provoking blog.

    1. Hey Marie-Louise,

      Perhaps I can chime in here with a few additional thoughts to your fabulous comment.

      First off, in time, I’d like to scientifically prove the direct/causal relationship that collaboration brings to revenue/profit and Customer Satisfaction increases … but at this point, sadly, I can’t.

      I believe there is causal prove, but I’ve yet to actually prove it, be it at TELUS or anywhere else.

      The research that I’ve been through, however, does suggest there is a causal relationship, hence, I’m relatively confident in my logic that a more engaged, collaborative and flourishing organization (eg. TELUS) can in fact improve revenues, profitability and customer satisfaction.

      There is no single bullet either, though.

      From the TELUS recognition, performance, community and high performer/high potential programs, to Learning 2.0 (formal, informal, social) and collaboration strategies, to our use of Fair Process, to myriad other ‘human capital’ practices, when put together, once can see a remarkable difference.

      The final rallying cry is what we call ‘Customers First’. It’s an enterprise-wide initiative that everyone gets behind — so all 40,000+ team members are trying to improve the customer experience (and interactions) in any way we can.

      This is done as ONE organization.

      In 2007, our employee engagement sat at 53% and revenues were $9.1b. In 2013, engagement rose to 83% and revenues to $11.4b. Our customer satisfaction rose from the high 50’s to the low 70’s.

      We’re not done yet … but we’re on our way.

      1. Hi Marie-Louise and Dan, my goodness! This is just a wonderful exchange and what a privilege having you both commenting on the blog post. Thanks ever so much! Marie-Louise, I asked Dan to take a look into your comment and add further up his thoughts around what’s happening at TELUS and I am certain he’s on to something perhaps not with enough scientific proof just yet, but definitely with the right focus and causal equation of identifying the key item to the heart of the matter is the customer value. It’s essentially around how through that journey to become a successfully Socially Integrated Enterprise we have got the opportunity to improve the overall customer experience and if we start thinking that even our fellow colleagues are our clients the whole exercise just makes perfect sense in terms of increasing those satisfaction rates, as Dan mentioned above, as well and get us right back on track.

        For a good while now I have been saying how employee engagement is directly affecting the overall customer experience to the point where not only employees are disengaged, but customers, too! That’s one of the main reasons as to why I think Social Business can help re-ignite that dialogue / conversation and help everyone understand we are on the same boat, as mentioned above: delighting our clients.

        Thanks a lot both Marie-Louise and Dan for dropping by and for the wonderful commentary! It’s greatly appreciated.

  2. Luis, Dan – thanks so much for responding – I’m truly appreciative !
    They may not be the answers I wanted but they are the best answers I could have hoped for – and yes, we may well be on our way but, I’m not quite done yet …with this conversation ☺!
    Yes, I’d like science and I’d like the high hanging fruit – but it’s clearly still out of reach…

    Dan a couple more questions/clarifications – you say

    “our employee engagement sat at 53% and revenues were $9.1b. In 2013, engagement rose to 83% and revenues to $11.4b. Our customer satisfaction rose from the high 50′s to the low 70′s.”

    When you said “employee engagement” am I right in understanding that what you were referring to was a combination of engagement tools (social technologies) and engagement “programmes” – even if the latter were run from/through the social technology at Telus?
    e.g Fair process, Learning 2.0 and the Customer First initiative?
    How was “employee engagement” defined before it was measured in the case of Telus?And how was it measured with specific reference to the social technologies (rather than the programmes?)

    I think you are right – for the moment (and from the perspective I was asking) it is a “causal relationship” and in reality the science rests with a matrix of enablers that has helped Telus (as an example) achieve such fantastic results – “no single bullet” as you so correctly described it.

    But there is one remaining point you made that stood out– it was “done as ONE organisation” – and that surely was achieved through a socially integrated enterprise?

    Luis – thank you so much for enabling this conversation right here through your fantastic blog – and Dan thank you so much for joining it and expanding the conversation with your valuable insights.

    Grateful as always

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