What are the best lean metrics to track customer satisfaction and loyalty?

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Customer satisfaction and loyalty are crucial for any business that wants to succeed in the long term. But how can you measure them effectively and use them to improve your products and services? In this article, you will learn about some of the best lean metrics that can help you track and optimize your customer value proposition.

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Kenny Woods

Empowering Change and Excellence through ?? Data-Driven ?? Insights, Kaizen ???, and Kata ??

1 Net Promoter Score

One of the most popular and simple lean metrics to measure customer satisfaction and loyalty is the Net Promoter Score (NPS). NPS is based on asking your customers one question: How likely are you to recommend our product or service to a friend or colleague? The answer is given on a scale of 0 to 10, where 0 means not at all likely and 10 means extremely likely. Based on their response, you can categorize your customers into three groups: promoters (9-10), passives (7-8), and detractors (0-6). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The higher the NPS, the more loyal and satisfied your customers are.

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Kenny Woods

Empowering Change and Excellence through ?? Data-Driven ?? Insights, Kaizen ???, and Kata ??
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“ Quality is remembered long after the prices forgotten.” Gucci Family Slogan NPS is a geometric for tracking customer satisfaction of Loyalty. And measures the likelihood that a customer will recommend your service to others. In healthcare setting as patient on the scale of 0 to 10 how likely to recommend our facility to a friend or family member? HCAHPs is a good example. Categorize responses into promoters passes and detractors and calculate the score by subtracting the percentage of detractors and promoters. High NPS indicate strong loyalty and satisfaction, getting efforts to enhance patient experience and service delivery.

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Munish Bakshi - LSSMBB, PRINCE 2, ITIL

SVP Process Excellence & Business Transformation - Teleperformance DIBS
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Let's cement this The customer is always right. Key metrics include NPS ,Customer Satisfaction Index , customer churn rate & repeat business. We should track these metrics to identify trends, address issues & improve customer experiences. If we focus on customer satisfaction we can build loyalty & drive business growth.

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2 Customer Effort Score

Another lean metric that can help you gauge customer satisfaction and loyalty is the Customer Effort Score (CES). CES is based on asking your customers one question: How easy was it to use our product or service? The answer is given on a scale of 1 to 5, where 1 means very difficult and 5 means very easy. The CES is calculated by averaging the scores of all your customers. The higher the CES, the more effortless and convenient your product or service is.

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Kenny Woods

Empowering Change and Excellence through ?? Data-Driven ?? Insights, Kaizen ???, and Kata ??
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Make it easy make them stay - anonymous CES how much effort to customer must exert to interact with your organization if you were in healthcare, this might involve the ease of scheduling appointment or accessing medical records. Patient interaction issue resolved today. Effort score suggest a seamless experience essential for building satisfaction and loyalty. Effort and processes leads to happier patience and can highlight areas where operation improvements are needed.

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3 Customer Lifetime Value

A third lean metric that can help you track customer satisfaction and loyalty is the Customer Lifetime Value (CLV). CLV is the estimated total revenue that you can generate from a customer over their entire relationship with your business. CLV is calculated by multiplying the average revenue per customer by the average retention rate and dividing by the average churn rate. The higher the CLV, the more profitable and loyal your customers are.

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Kenny Woods

Empowering Change and Excellence through ?? Data-Driven ?? Insights, Kaizen ???, and Kata ??
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“The purpose of the business is to create and keep a customer.” Peter Drucker The CLV estimates the total revenue healthcare organization can expect from patient over their lifetime. In would involve analyzing patient retention, frequency of visits, and average spend of visits. The high CLV indicates the successful long term relationships, suggesting that patients value the services provided. Tracking CLV helps prioritize efforts on high value patients and designing programs that encourage loyalty, such as personalized care plans or wellness programs.

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4 Customer Feedback Loop

A fourth lean metric that can help you improve customer satisfaction and loyalty is the Customer Feedback Loop (CFL). CFL is a process of collecting, analyzing, and acting on customer feedback to enhance your product or service. CFL is based on four steps: ask, listen, act, and measure. You can use various methods to ask for feedback, such as surveys, reviews, interviews, or social media. You can use tools like text analysis, sentiment analysis, or data visualization to listen to what your customers are saying. You can use techniques like prioritization, experimentation, or validation to act on the most relevant and impactful feedback. And you can use metrics like NPS, CES, or CLV to measure the results of your actions.

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5 Customer Journey Map

A fifth lean metric that can help you optimize customer satisfaction and loyalty is the Customer Journey Map (CJM). CJM is a visual representation of the steps that your customers take to interact with your business, from awareness to advocacy. CJM helps you understand your customers' needs, expectations, emotions, pain points, and opportunities at each stage of their journey. You can use CJM to identify gaps, bottlenecks, or friction in your customer experience and design solutions to eliminate or reduce them.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best lean metrics to track customer satisfaction and loyalty?

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1 Net Promoter Score

2 Customer Effort Score

3 Customer Lifetime Value

4 Customer Feedback Loop

5 Customer Journey Map

6 Here’s what else to consider

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