How can KPIs be used to increase customer satisfaction in financial services?

1 What are KPIs?

KPIs are measurable values that show how well you are achieving your business goals and objectives. They help you monitor your performance, identify areas of improvement, and communicate your progress to your stakeholders. KPIs can be divided into two types: lagging and leading. Lagging KPIs measure the outcomes of your actions, such as revenue, profit, or customer retention. Leading KPIs measure the drivers of your outcomes, such as customer satisfaction, service quality, or customer referrals. Both types of KPIs are important, but leading KPIs can help you predict and influence your future results more effectively.

2 How to choose the right KPIs?

Choosing the right KPIs for your financial services business requires considering your specific goals, strategy, and customer segments. You should select KPIs that are relevant, measurable, achievable, realistic, and timely (SMART). Additionally, it's important to align your KPIs with your customer journey. For instance, different KPIs can measure how well you attract, engage, convert, retain, and delight customers. Some common KPIs for financial services are the customer satisfaction score (CSAT), net promoter score (NPS), customer effort score (CES), customer lifetime value (CLV), and customer churn rate. CSAT is a simple and direct measure of how satisfied customers are with your service or product. NPS is a measure of how likely customers are to recommend your service or product to others. CES is a measure of how easy or difficult customers find it to interact with your service or product. CLV is a measure of how much profit you can expect from a customer over their relationship with your business. Lastly, the customer churn rate is a measure of how many customers leave your business over a given period of time.

3 How to use KPIs to increase customer satisfaction?

Using KPIs to increase customer satisfaction requires a systematic and continuous approach. You should first set KPI targets and benchmarks, assigning responsibilities and deadlines for each one. Then you should collect and analyze your KPI data, using reliable and consistent methods such as surveys, feedback forms, CRM systems, or analytics tools. After that, you need to implement and monitor your KPI actions, adjusting them as needed. Finally, you should review and report your KPI results to your stakeholders and celebrate your achievements. By doing so, you can measure and improve customer satisfaction in financial services, enhancing service quality, customer loyalty, and customer feedback. This will help you gain a competitive edge and grow your business.