Looking after your customers should be key to any company strategy as it directly relates to your growth and profitability, as we’ve previously written about when looking at Customer Satisfaction vs Loyalty in your strategy.
Although the core reason for focusing on Customer Satisfaction or Customer Success is to reduce churn and improve sales, there are a number of possible KPIs you can use to measure your strategic effectiveness.
Customer Satisfaction Level:
A really key one is if the levels of customer satisfaction are known, something which is not the case currently, and if they improve over time. Metrics such as Net Promotor Score are often used here as a gage for how you are performing.
Customer Effort Level:
There are some studies to suggest that the amount of effort a customer has to put in to interact with your product and company directly relates to their likelihood to depart. As an alternative to NPS, you could consider measuring their effort level.
Customer Knowledge Level:
An increased knowledge of customers and how they use the product should lead to an improved product development roadmap and understanding of how the system is used, better positioning the company.
Market Knowledge Level:
As part of the increased engagement with the customers and the competitor research a greater understanding should be obtained of the overall competitive landscape, which can then be fed into your frameworks such as SWOT Analysis or PESTLE Analysis.
Churn Rate / Revenue Protection:
Ultimately the churn rate of customers should decrease if you are effective at improving the customer experience, the long term goal is to lose no customers from a lack of understanding their needs.
Revenue and Profit Increase:
Given the decreased churn rate and happier clients the revenue should continue to be built on by the sales team, who will be helped by happy client references, while the profitability of the longer term clients will contribute to an overall more profitable, stable and secure company.
Using a mix of the above will help you measure how effective your customer objectives are within your company strategy. Selecting and monitoring KPIs is about balance, think about your core strategic objectives, your overall company vision and pick the ones that will help you track your progress.
We can help you build your customer strategy
Our strategy software makes it faster and easier to build your customer objectives and goals, run the execution and track your KPIs and results. Book a demo and we'll show you how.