If you’re planning on selecting a new ERP or CRM system, you need to start thinking about how you will measure implementation success. Today, we’re talking about customer experience KPIs – one of the many types of KPIs to define at the beginning of an enterprise software project. What are some of these KPIs, how do you measure them, and why should you even bother measuring them?
What Are Customer Experience KPIs?
Key performance indicators (KPIs) refer to the key business metrics you’ll use to track and monitor different aspects of your brand’s customer experience.
In other words, how are customers interacting with your company? Is their experience good, bad, or just OK? How can you make it better? Thanks to advancements in data analytics, it’s now easier than ever to capture and analyze this information based on buyer behavior.
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Key KPIs to Analyze
As customers continue to use your products and services, it’s important to make sure they’re satisfied at every turn. Let’s take a look at seven key customer experience KPIs to track and measure.
1. Customer Churn Rate
Churn rate is the rate at which customers stop subscribing to a particular product or service that you offer. The key to retaining your existing customers is reviewing this rate and understanding the timeline. When do they tend to abandon your company and why?
If you can pinpoint this period and the events surrounding it, you can take steps to reduce your churn rate. When churn rates are low, it sends the message that your customers are satisfied with the level of value they’re receiving from your brand.
2. Omnichannel Customer Lifetime Value
Omnichannel customer lifetime value (CLV) represents the total value of each customer’s relationship with your brand. This is an important metric to track because keeping an existing customer costs less in the long run than acquiring a new one. If you can extend their CLV, your loyalty, revenue, and longevity will improve.
The “omnichannel” part of this metric means you’ll need to track customer interactions across all of your channels, including your website, social media pages, brick-and-mortar locations, and more.
3. Net Promoter Score
Your Net Promoter Score (NPS) reflects how likely a current customer is to recommend your business to someone else. If your NPS is low, it indicates that you need to enhance and improve customer experience initiatives. One way to do this is to seek customer feedback.
From surveys and focus groups to Facebook posts, look for ways to learn more about what your customers want to see from your brand. Then, put steps in place to turn those requests into action.
4. Revenue Per Unique Customer
Of course, a high revenue is one indication of business success. However, you can learn a lot about your customer experience when you break it down to a more granular level.
Your revenue per unique customer (RPUC) reveals customer interactions during a specific timeframe, using actual data and not average data. For instance, you can take a snapshot of your interactions with a particular customer over the course of one week, month, or year.
Then, you can benchmark those findings against other interactions, such as how their peers interacted with your brand during that same time. You can use that data to personalize your outreach and loyalty strategies, driving individual customer value.
5. Average Resolution Time
When your customers have a problem or need an answer, how long do they have to wait? That’s essentially what you’re measuring by analyzing your company’s average resolution time.
In short, this measures how long it takes a customer service agent to resolve a customer’s issue.
You can use these findings to learn more about why your customer satisfaction rates look like they do. It also helps reveal inefficiencies within your customer service department.
Quick resolutions can help improve your customer experience, which enhances customer loyalty. Research shows that 78% of customers are more likely to be loyal to a brand if they have an amazing experience on their digital channel, while 64% will move to a competitor if their experience is unpleasant.
What constitutes an amazing experience? According to the same report, 69% ranked prompt resolution and response time as being the chief factor.
6. Customer Acquisition Rate
If you can provide an excellent customer experience throughout the buyer journey, it’s easier to keep prospects engaged. In turn, this makes it easier to guide them toward a buying decision.
To find your customer acquisition rate (CAC), simply divide all your costs associated with acquiring more customers (marketing campaigns) by the number of customers acquired during that time period. The lower that rate is, the higher your ROI will be.
7. Cart Abandonment Rate
How often does someone add an item from your online storefront to their virtual shopping cart, and then abandon the idea and purchase altogether? This is what you’re trying to measure by analyzing your cart abandonment rate. Often, you can improve this rate by making small adjustments to your customer experience.
For instance, if you find that shoppers are abandoning their carts because they have lingering questions about a product, you can invest in more training for your customer support team. Or, you can consider adding a chatbot to your website for easier self-service. When your abandonment rates are low, it indicates that your satisfaction rates are up, along with your sales.
Implement These Customer Experience KPIs
After you’ve implemented a new CRM or ERP system, it’s easy to lose track of how your customers feel. These customer experience KPIs require you to take an honest, in-depth look at how they’re interacting with your brand, and what issues are keeping them from full engagement.
The goal is to help you understand inefficiencies and give you solid insight into how to correct them. This may include reengineering your processes, investing in new technologies, or shifting your focus in a new direction.
Along the way, our ERP consultants can help you optimize every aspect of your business. Contact us below to learn more.