Metric sales

How to select a CX tag metric

It’s that time of year again. We’re not talking about back to school (although there are probably plenty of parents excited about that milestone). No, we are referring to the annual planning cycle: review of performance against OKRs and supporting KPIs, as well as subsequent budget planning. For customer experience (CX) professionals, this can be an especially stressful time as CX metrics are scrutinized by management.

Do you have the correct CX Beacon metric?

During this planning period, Forrester sees an increase in questions about CX metrics, especially tag metrics: Do we have the right CX tag metric? What do companies like ours use as a beacon metric?

To help those of you who are facing these questions, here is a review and some recommendations for managing your CX tag metric.

Why do you need a CX tag metric?

A CX tag metric is the CX metric that serves as an organization’s key performance indicator for CX success. This metric helps you and your organization gauge the overall success of your company’s CX efforts and whether you’re delivering high-quality experiences that affect business success.

What are the most popular CX Beacon metrics?

Many companies use Net Promoter Score℠ (NPS) as a beacon metric. Some use satisfaction or effort. Very few use alternatives like custom indexes. All potential tag metrics have pros and cons.

Which CX tag metric should you choose? Your Organization?

Never worry about finding the perfect beacon measurement and no more worrying about finding an effective measurement for your organization. To find it, ask these questions for each potential tag metric:

  • Is the measurement a leading indicator of important financial and strategic objectives of your organization?
  • Does the metric capture changes in CX performance, as seen in other metrics in your framework?
  • Does your tag metric make sense to your customers? In other words, are you asking about a behavior or perception that fits the situation?
  • Is your metric easy for everything employees to understand and rally?
  • Can you evaluate your beacon metric to understand your position in the larger landscape?

By evaluating your CX tag metric against these criteria, you can be more confident that your measurement system is aligned with business strategy, accepted by executives, and relevant to customers. You’ll be able to better align all of your other CX metrics, leading to more relevant use cases and ROI calculations. And you’ll be ready to tackle this year’s planning process.

This will prepare you to do the work that really matters: creating a measurement architecture under the tag metric that will help you make improvements to CX. Now if only you could find a great sale on kids backpacks!

To learn more about Forrester’s CX Measurement Framework or for more guidance on choosing the right beacon metric, Forrester customers can access the three reports listed below or schedule a survey with me or Pete . Non-customers can check out the free Revitalize CX Measurement & Prioritization guide.