Measurement & Metrics
What gets measured gets done. It's important to define what you are trying to achieve from a set of metrics you want to use, as well as what you want to improve, and to understand the operating model in your organization.
Types of Customer Measurement:
Strategic Measurement: This measures your strategic objectives and KPIs so that everyone in the organization rally around them. There are two primary measurements:
- Benchmarks measure your organization’s brand value among your competitors in the market.
- Loyalty and Relationship measures the holistic experience of the customer relationship.
Metric Examples:
- Customer Lifetime Value: Customer retention refers to your organization’s ability to retain its customers over some specified period.
- Brand Reputation: Brand reputation refers to how others view your brand. A favorable brand reputation means consumers trust your company and feel good about purchasing goods or services from you.
- Customer Loyalty: Customer loyalty is the result of a company consistently meeting and exceeding customer expectations. Customers that trust the companies they do business with will be more likely to purchase from them again in the future.
Touchpoint, Journey, or Episodic Measurement: This measures crucial touchpoint experiences or episode milestones that customers go through during their journey with your organization.
Metric Examples:
- Customer Adoption: The customer is successfully using products and services to achieve their business goals.
- Customer Delight: You surprise the customer by exceeding their expectations and thus creating a positive emotional reaction. This emotional reaction leads to word-of-mouth recommendations for your organization. You can't delight a customer unless the baseline of the expected experience has already been met.
- Customer Happiness: The customer is completely content with products and services.
Transaction or Event Driven Measurement: This measures the experience following a specific event or interaction with your organization.
Metric Example:
- Customer Effort: How much effort a customer has to exert to resolve a request, get a request fulfilled, return or purchase a product, or get a question answered.
- Customer Satisfaction: The short-term effect of how your products and services meet or surpass customer expectation. It targets a "here and now" reaction to a specific interaction, product, or event.
Social Measurement: What customers are saying in a public forum via social media channels.
Metric Example:
- Customer Advocacy: Customers who turn into spokespeople advocating your products, services and brand; usually, they are the most loyal.
- Word of Mouth: An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product, or service.
After you define the type of measurement, you want to identify the right metric or set of metrics that are relevant to where the customers are in their journey with your organization.
Ensure you are setting up a metric that measures your customer value. This is the ultimate metric that each organization should establish if want to have a customer culture