It is difficult, if not impossible, to fill a bucket that has holes. One could argue the bucket will fill if the input rate is greater than output rate however at what cost?
Lean startups should try and address the problem of losing customers before they accelerate customer acquisition because a happy customer tells about service/ brand to 4 friends while an unhappy customer shares with 10 prospects. The typical hole in the bucket symptom for startups include low repeat usage, plateaued Monthly Active Users (MAU), negative sentiment on social etc.
Customer Experience study helps identify the holes in the bucket and convert first time product users to brand ambassadors. There are 2 key elements to Customer Experience Study:
- Analyzing the recorded customer behavior.
- Analyzing the reported customer response.
Recorded Customer Behavior is the behavior reported by analytics and includes site/ product usage, revenue growth, social buzz sentiment, customer channel preference. Essentially, all intelligence gathered by analytics or otherwise on how customers are using the product.
For instance, a startup in urban transportation ( dispatch service, taxi companies, cab aggregators) should start looking at the following Customer Experience Matrices:
- Ratio of New Users to Total users:
- Source of New Customer: Ads/ Marketing Campaigns/ Channels/ Referral
- Average use Frequency of top 20% users
- Revenue per MAU:
- Ratio of Trips Services and Trips Booked:
- Ratio of Complaints and MAU:
- Ratio of Positive Feedback and MAU:
- Ratio of Complaints and Positive Feedback:
Reported Customer Response is the response to Customer Experience surveys and questionnaires. These surveys should be conducted at the time/ point of use of product. Here are the 4 most important Customer Experience measurements summed up in 4 Questions ( for the questions I am continuing with the example of urban transportation startup- The Smiles Cab):
1. Overall Satisfaction
Question: How satisfied are you with “The Smiles Cab