With good strategies of customer experience KPIs, a company or business can improve it’s customer experience for a better performance. A good customer experience represents the backbone upon which many business organizations support themselves. Regardless of the price or quality of a certain product, a number of business studies suggests that customers that receive poor services from a particular company seeks other vendors to meet their needs.
The customer experience is a very complex area that requires the right tools, clear vision and great execution to succeed. A business should be analyzed in these three areas: efficiency, acquisition and retention. These areas play a major role in a business and they should be highly regarded in order for the business to achieve success.
Important Customer Experience KPIs to Know
1. Efficiency
Efficiency focuses on doing the right operational-activity to deliver the expected results at a very lower cost to the business organization. It allows a business organization to achieve more with less. In order for a business to have good efficiency it should focus on these three challenges that affect it’s CX.
- Decreasing the cost of operations- A business should focus on decreasing their cost of operation associated with servicing customers before or after purchasing a product. When operational cost is well maintained, a business is able to come up with good solutions that helps to increase it’s customer satisfaction on a lower cost.
- Productivity- In many businesses , the largest cost associated with running a business is the number of employees. In order for a business to be productive, it must ensure it has the right number of employees that will deliver a good customer experience. Improving customer relations with employees can help a business build it’s trust with it’s customers.
- Added Economic Value – An increase in this area, typically indicates the strengthening of a business financial position.
2. Retention
Retention mainly focuses on how a business keep it’s customers, to increase it’s life-time value and churn. It’s the key component of growing the customers that a business already has. There are three important factors that affect retention of a business.
- Increasing the share of wallet helps to drive more profit to a business. A business can concentrate on expanding its sales in order to gain profits and revenues.
- Advocacy is a very desired result that goes beyond customer loyalty. In the social age, advocacy is the key-component of any business success measurement. A good customer advocate is the one that refers a business to friends, family and colleagues. A business should improve it’s customer experience in a way that most customers will feel comfortable to advocate or refer it to their colleagues.
- A customer who is loyal resists from switching to another brand or conducting business with another company. Once you create good loyalty with your customers, they will always feel guilty to seek services and products from other companies or business organizations.
3. Acquisition
Acquisition mainly focuses on how a company can achieve it’s customer base by gaining new customers. Of the customer experience KPIs, acquisition involves how a business grows it’s brand awareness to attract more customers and retain it’s current customers. There are three business factors that involve acquisition
- Increasing brand equity is a key objective of most businesses. Increasing a company brand equity helps to build corporate value and influence key sales and customer measurements such as improving customer conversion-rates, driving higher revenues and increasing the average value of an order.
- Increase in market share helps to provide companies with growth, sustainability and pricing power. Improving the market share generally leads to a better financial position of a business.
- Generating more opportunities is a great challenge of acquisition. Increasing opportunities and new ventures are important customer experience KPIs that can help a business to grow it’s success. More business opportunities can be generated through increasing the number of customer and visitors so that there are many situations for sales to be transacted.
Customers can be increased by marketing strategies at a store or through a company’s website. When a business achieve an opportunity growth, it’s able to gain a respectable brand or products that trends well in the market niche.
Customer Retention, Efficiency and Acquisition Strategies
Acquiring and retaining customers is one of the key components of running a successful business. In order for a business to reduce client turnover, it should embrace on employing qualified employees and implement good practices that ensure customers feel comfortable to have a business relationship with the company or business organization. Listening to customers feedback, fostering client relationship and fulfilling customers needs can greatly improve the customer retention and acquisition of a business.
1. Customer Relations
Maintaining good customer relation is one of the key component of customer experience KPIs and it’s an effective way of acquiring and retaining customers. When a business or company promotes a positive relationship with it’s customers, most clients feel appreciated and they view the company as a place that adds value to their lives.
Identifying the main customers needs and directing efforts that fulfill them helps to increase client loyalty in a business. A company or business organization can use it’s resources to implement customer based appreciation programs such bonus and discounts on particular products or services. Customer satisfaction surveys that contains Sweepstakes can also be conducted in order tho show customers that their feedback is highly valued.
2. Performance Measurement
In order for a business to improve it’s customer efficiency, retention and acquisition, it should focus on implementing strategies that focus on finding out why customer choose to stay or leave. Methods such as online customer satisfaction survey and customer focus group should be used to detect problems that a company didn’t know about. a business that is aware of it’s external and internal issues is able to identify and correct the issues before they become a crisis or unmanageable. Performance measurement is a key component of customer experience KPIs and it should be incorporated within a business to enhance success.
With these Customer experience KPIs, a company or business organization can identify it’s strong-hold and wickedness that leads to poor performance of it’s productivity.
