What are the best KPIs to track the value of your business relationships?

1 What are customer satisfaction metrics and KPIs?

Customer satisfaction metrics and KPIs are quantitative and qualitative indicators that show how happy and loyal your customers are with your products, services, and interactions. Metrics are specific measurements that can be tracked and compared over time, such as customer satisfaction score (CSAT), net promoter score (NPS), or customer effort score (CES). KPIs are key performance indicators that align with your strategic goals and objectives, such as customer retention rate, customer lifetime value, or customer advocacy.

2 Why are customer satisfaction metrics and KPIs important?

Customer satisfaction metrics and KPIs are important because they help you understand and improve the value of your business relationships. By measuring customer satisfaction, you can identify the strengths and weaknesses of your offerings, the gaps and opportunities in your processes, and the drivers and barriers of customer loyalty. By setting and monitoring customer satisfaction KPIs, you can align your actions and resources with your desired outcomes, track your progress and performance, and demonstrate your value and impact to your stakeholders.

3 How to choose customer satisfaction metrics and KPIs?

Choosing customer satisfaction metrics and KPIs depends on several factors, such as your business context, customer segments, value proposition, and feedback channels. It is important to select metrics and KPIs that are relevant, reliable, and actionable for your situation. Generally, you should use a combination of quantitative and qualitative metrics to capture both the rational and emotional aspects of customer satisfaction. Additionally, a mix of leading and lagging indicators should be used to measure both the inputs and outputs of customer satisfaction. Furthermore, a balance of internal and external metrics should be used to compare your performance with your own standards and with your competitors. Finally, a hierarchy of metrics and KPIs should be used to link your operational, tactical, and strategic levels of customer satisfaction.

4 How to use customer satisfaction metrics and KPIs?

Using customer satisfaction metrics and KPIs requires a systematic and continuous approach that involves collecting, analyzing, reporting, and acting on customer feedback. To ensure success, it is important to define your customer satisfaction metrics and KPIs clearly and communicate them to your team and customers. Additionally, customer feedback should be collected regularly and consistently using various methods and sources, such as surveys, interviews, reviews, or social media. This feedback should then be analyzed objectively and comprehensively using appropriate tools and techniques, such as data visualization, sentiment analysis, or root cause analysis. Furthermore, customer feedback should be reported clearly and timely using relevant formats and channels, such as dashboards, reports, or presentations. Finally, customer feedback should be acted on promptly and effectively using appropriate actions and solutions, such as service improvement, customer recovery, or customer recognition.