Don Peppers’ blog posts are followed by nearly 300K on LinkedIn. He was among the first invited to be a LinkedIn Key Influencer when the program began in 2012. Today, he is one of LinkedIn’s top CX experts.

Don's Blog

One Number to Assess Your Digital Customer Experience

In a previous article I suggested that when you try to evaluate the quality of your customer experience, you shouldn’t rely on subjective voice-of-customer (VOC) feedback all by itself, whether you use NPS (Net Promoter Score) or some other survey. Because in addition to the subjective opinions of customers, you need objective, observational metrics – metrics that…

AI Reasoning is Qualitatively Different

Most people, when they think about the differences between artificial intelligence (AI) and human intelligence, make the mental calculation that AI is gradually “catching up” to the human brain as technology continues to improve. After all, more than twenty years ago a computer defeated the world champion in chess, then a computer triumphed in Jeopardy,…

Measuring the Digital Customer Experience, Objectively

The picture above is something called a “bird’s nest.” When viewed in motion, it shows the path of a user’s mouse rapidly shaking around on a website. And what it reveals is that the user was highly frustrated. I was recently introduced to Decibel, a company that has developed some innovative technologies to analyze all of…

The Runaway AI Trolley

You may be familiar with the famous “trolley problem” from ethics discussions. Suppose the brakes on a trolley car have failed and it’s now racing toward five people who are tied to the track up ahead and sure to be killed. You have the power to pull a switch and divert the trolley to a…

WHY “YOU CAN’T MANAGE WHAT YOU CAN’T MEASURE” IS BAD ADVICE

The phrase “you can’t manage what you can’t measure” is often attributed to W. Edwards Deming, the statistician and quality-control expert credited with having launched the Total Quality Management (TQM) movement, and at other times it is attributed to Peter Drucker, perhaps the world’s most famous management consultant ever. Both men, however, were far too smart…

Avoiding Five Natural Human Biases in Making Decisions with Data

There are so many human biases to rational decision-making that it is impossible to categorize them completely. And biases need to be recognized first, of course, before we can minimize or avoid them. Five of the most important are: The confirmation bias (i.e., looking more for evidence confirming our prior beliefs), Overconfidence in our own…

Making Data-Driven Decisions Without a Math Degree

Having mathematics or statistics training is always beneficial when making decisions based on data, but even more important than knowing how to calculate equations is knowing a few basic principles, many of which don’t even require adding a string of numbers. A great many bad decisions have been made based on spurious correlations, false assumptions,…

Customer Lifetime Value, Part III: “Leading Indicators” of LTV Change

Is it possible to identify LTV changes as they happen? The short answer is: Yes. But to do it, your analytics people need to be able to look at current-period transactional and other data – including all the data that goes into modeling customer lifetime values in the first place – and estimate how current-period…

Customer Lifetime Value, Part II: LTV as a Business-Building Tool

In my last post I discussed the basic concept of customer lifetime values and why they’re so important to businesses, in terms of helping them visualize the value-creating role that customers play. Quarterly sales show the value already generated by a customer’s current-period transactions. LTV predicts future value likely to be created by a customer.

What is Customer Lifetime Value?

The easiest way to answer this question is to start with the fact that customers create two different kinds of value for a business: In the short term they buy things, and/or they cost money to serve. This kind of value creation gets reported in the quarterly earnings statement. Over the long term, a customer’s…