When a business is trying to measure its success with customers, there are many ways to do it. Considering different types of metrics can help you acquire valuable insights on how to improve your customer service. Therefore, preserving customer's loyalty to your organization.
Try to focus on the metrics that matter the most to your brand instead of paying much attention to info and statistics that can be overwhelming. There are six metrics that you should keep your focus on to calculate the real success of your brand.
In this article, Antelope will give you a summary of the most important metrics that you should look after when trying to measure overall success.
CLV or Customer Lifetime Value
In simple terms, CLV indicates the sum of money a client is projected to expend during the time their relationship with your company lasts. Customer lifetime value goes through the info in the purchaser's history. The purpose is to analyze the data to conclude how much revenue your company can expect in the future from that particular client.
When it comes to customer service, CLV is one of the most relevant measurements of success. Its importance relies on demonstrating that the products and services you offer are valuable to your client base.
If your customers' needs align with your company's target, the customer lifetime value should increase over time. If the CLV starts decreasing, it means that your brand is losing the mark with clients, and it may be time to assess your offerings to allure them to return.
Can Good Customer Service Help With Customer Churn?
A customer churn is the percentage of customers that part ways with your business during a sales quarter. Your company's sales team must center attention and invest energy and time on maintaining this percentage as low as possible.
When you notice that the customer churn percentage is rising, it's time to consider assessing another approach. It's vital to determine why your clients are stopping their subscription or ceasing to buy from your brand. By finding the causes, you can develop incentives and strategies to maintain your client's loyalty.
NPS or Net Promoter Score
This is a metric of whether a client is likely to suggest or recommend brand's services or products to somebody else within their social network. Out of all the metrics utilized to measure business success, this is probably the easiest to analyze and probably the most simple one.
By directly reaching out to consumers to evaluate your products or services you can obtain data that will generate a net promoter score. Send them a feedback request after a client buys a service or product from your brand. Ask them to rate the service or product on a scale from one to ten and include an option for them to let you know the reasons why they rated the way they did.
You can use the information you obtain through these customer service surveys to get your business's complete net promoter score.
An excellent way to measure how happy your clients are regarding a completed interaction with your brand is by using a customer satisfaction survey. You can obtain valuable insight when analyzing whether or not you can expect to do business with them again.
Data coming from happiness surveys also helps your marketing team since they can analyze the CLV. Eventually, the team can provide info on what is required to provide a better customer experience.
The data obtained from following up with clients after a service or transaction enables your brand to determine how good your customer service is. This way, you can assess how your representatives portray your business and determine how well they are fulfilling your customers' needs.
In simple terms, the revenue churn is the sum of lost revenue in a determined sales period, regardless of whether it's analyzed annually, bi-annually, or quarterly. If the revenue churn in your company is constantly increasing, then your business may be in trouble, so it's a must to identify where and why the losses are happening.
The main reasons behind revenue churn are canceled contracts, canceled subscriptions, and loss of sales on determined services or products.
Depending on what your business is selling, the average subscription of your customer can go from three to 30 months. Regardless of what your business is about, either SaaS, physical product subscription, or any other recurring service, renewals are vital. The data you gather from renewals can help you obtain an estimate of the future success of your brand.
First, you should establish the average renewal rate for each of your services or products subscriptions. Strategize different manners to keep your customers engaged and around for a more extended period.
Your business can obtain the proper insight to measure success by identifying the best metrics for customer satisfaction since customer service is a must. Utilizing tools like marketing automation combined with CRM will enable your brand to schedule outreach and set up reminders.
When you look after your customers, they'll feel appreciated and will be more inclined to stay loyal to your brand. Focus on keeping them engaged, happy, and naturally, they'll keep coming back for more of your brand. Antelope has the right tools to guide you through this process. Contact us; we're here to help.