A lot of industry pundits suggest that tying compensation to customer feedback is a good thing. But is it really?!?
My take: I’ve seen situations where tying compensation to feedback scores has helped a lot and I’ve seen situations where it has failed miserably. So the correct answer is much more nuanced than a simple you should or you shouldn’t tie compensation to customer feedback.
Before I give my advice, here are three key underlying principles:
Bob Thompson interviews Bruce Temkin, a thought leader in Customer Experience Management, about his new report,
The Current State of Customer Experience.
I just published a report called The Business Impact Of Customer Experience that I think will have a significant impact on how companies think about customer experience. Here's an excerpt from the executive summary:
Executives know that customer experience is important, but they can't always tie it directly to business results. So we examined the correlation between the customer experiences delivered by 112 US firms (as defined by Forrester's Customer Experience Index) and the loyalty of their customers. Our analysis shows that good customer experience correlates highly to loyalty.
Most of us already intuitively knew that good customer experience is good for business; that's the basis for...
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