Resources

• https://www.forbes.com/sites/shephyken/2018/05/17/businesses-lose-75-billion-due-to-poor-cu
stomer-service/?sh=7a5363a816f9

• https://www.vermontrealtors.com/how-to-capture-serial-switchers/

• https://www.youtube.com/watch?v=GltlJO56S1g
Product management
Product management is an organizational function that guides every step of a product’s lifecycle — from
development to positioning and pricing — by focusing on the product and its customers first and foremost. To
build the best possible product, product managers advocate for customers within the organization and make
sure the voice of the market is heard and heeded.

Business Development
In the simplest terms, business development can be summarized as the ideas, initiatives, and activities that help
make a business better. This includes increasing revenues, growth in terms of business expansion, increasing
profitability by building strategic partnerships, and making strategic business decisions.

Product Design
Product design is the process designers use to blend user needs with business goals to help brands make
consistently successful products. Product designers work to optimize the user experience in the solutions they
make for their users—and help their brands by making products sustainable for longer-term business needs.
Essential Terms

Positioning - It is the space you want to own in the mind of your customers, relative to your competitors.
Positioning defines the category you want to dominate.
Example: BMW is the car for people who enjoy driving. Relative to competitors it is the most fun to drive.
Positioning can be explained in a tag line. BMW is the ultimate driving machine.

Value proposition - It is the specific, concrete and differentiated benefit your target customers experience when
using your product (or service). Value propositions usually come with proof points.
BMW’s Value proposition is that you will enjoy driving the cars more than any other because of their design and
German engineering.

Positioning Statement - Is a sentence that explains your positioning and value proposition. There is no rule but
there are a few formulas or templates. For example:
[Product Name] enables [target customer] to experience [benefit]
BMW enables car enthusiasts to enjoy their driving experience.
For [target customer] who [need/pain], the [product] is a [category] that [key benefit] unlike [competitors] who
[differentiation]
For car enthusiasts, who enjoy driving, BMW is a luxury sports car that provides maximum driving enjoyment
unlike other luxury cars that isolate drivers from the road.
Net Promoter Score

Net Promoter Score®, or NPS®, measures customer experience and predicts business growth. This proven metric
transformed the business world and now provides the core measurement for customer experience management
programs the world round.

Calculate your NPS using the answer to a key question, using a 0-10 scale: How likely is it that you would recommend
[brand] to a friend or colleague?

Respondents are grouped as follows:

Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative
word-of-mouth.

Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can
range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
First Response Time
First Response Time (FRT) is the time elapsed between a customer raising a ticket and an agent first responding to it.
Many companies include a baseline FRT in their service level agreements (SLA), which means they must respond to
customers within a specified timeframe.

It’s important to keep it as low possible as customers get frustrated when the first response from support takes a
long time. Unless your support coverage is 24/7, your Average First Response Time is best measured in business
hours, so your average isn’t affected by requests received on nights or weekends.

First Response Time is also sometimes called First Reply Time.

Your goal is to keep your FRT as low as possible because a speedy first response shows customers that you’re taking
them seriously. Be careful not to make the customer feel like they are waiting on a message in a bottle or snail-mail
levels of FRT. Customers don’t like to wait in the queue, ever!

The standard FRT for different platforms is as follows

• Social media FRT - 15 minutes or less
• Email FRT - 30 minutes or less
• Live chat FRT - 30 seconds or less
Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) measures customer satisfaction with a business, purchase, or interaction. It’s
one of the most straightforward ways to measure customer satisfaction, and it's obtained by asking a simple
question, such as 'How satisfied were you with your experience?' To answer, there's a corresponding survey scale,
which can be 1 – 3, 1 – 5, or 1 – 10.

A CSAT score is easy to calculate. It’s the sum of all positive responses, divided by the total responses collected,
then multiplied by 100. The outcome leaves you with the overall percentage of satisfied customers at your
business.

For example, if you received 25 total responses and 15 of them were positive — your CSAT score would be 60%
(15 positive responses / 25 total responses = .60 x 100 = 60%).

This indicates that a majority of people are satisfied with your offering, but also highlights that there’s much more
room for improvement.

When should you use customer satisfaction score?

1. After Customer Lifecycle Moments
2. Prior to Renewal
3. After Customer Support or Education Interactions
Customer Effort Score

A customer effort score (CES) is a service metric that measures how much effort customers put in to interact
with your business. These interactions can be something like how much effort it takes to use your product or
service or how easy it was for them to have a problem solved by your service reps.

A customer would put in a lot of effort if they have to search through pages of knowledge base articles to
find the one they need and put in minimal effort if they call a service rep and get their refund processed
immediately.

There's ample evidence that, at times, the ease of a given experience is a better indicator of customer loyalty
than simply measuring customer satisfaction. In addition, loyalty is a true pillar of successful businesses in an
increasingly competitive landscape.

That's why CES is popular with customer success teams. Instead of asking how satisfied the customer is, you
ask them to gauge the ease of their experience.

When To Use Customer Effort Score

1. Immediately after an interaction that led to a purchase or subscription.
2. Immediately after an interaction with your customer service team or a service-related experience.
3. To supplement product development teams' UI and UX testing.
What Is First Call Resolution?
First call resolution, also known as first contact resolution or FCR, is a company's ability to handle a customer's
call, email, question, or complaint during their first outreach for that specific incident. Optimal first call
resolution is an essential focus for all companies that strive to deliver quality service to their customers. Here
are a few specifics as to why obsessing over FCR is healthy for growth-minded businesses:

1. Good first call resolution helps retain customers.

2. It can change the mind of a dissatisfied customer.
3. It helps get the most out of your support staff.

How to Calculate First Contact Resolution Rate

To quantify your business' first contact resolution, use the first contact resolution rate formula.
The formula for first contact resolution rate, or FCR, is the total number of cases resolved in the customer's
first outreach divided by the total number of cases in a day.

FCR = Total Resolved Cases / Total Number of Cases

The higher the number, the better your team is at resolving issues the first time they arise.
For example, let’s say Company A received 1,327 calls in January. Of those calls, 714 were resolved on the first
contact. This would calculate to a 53.8% FCR rate.