Five Customer Performance Metrics You Should Be Tracking


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Five Customer Performance Metrics You Should Be Tracking

  1. 1. Five Customer Performance Metrics You Should Be Tracking ©2013 Satrix Solutions 1
  2. 2. Measure the Effectiveness of Your Voice-of-the-Customer Programs ©2013 Satrix Solutions 2 With a high correlation between strong customer relationships and financial performance - developing a business strategy that centers around customer performance metrics is critical.
  3. 3. Top 5 Customer Performance Metrics ©2013 Satrix Solutions 3 Net Promoter Score® Customer Retention Reference Accounts Sales Close Rates Share of Wallet 1 2 3 4 5
  4. 4. Net Promoter Score®  Monitor how enthusiastic customers are about the service provided.  Identify pain-points and where to focus improvement initiatives most likely to enhance the customer experience. ©2013 Satrix Solutions 4 Not at all likely Extremely likely 0 1 2 3 4 5 6 7 8 9 10 Detractors (0-6) Promoters (9-10) Passives (7-8) How likely are you to recommend us to a friend or colleague? % of Promoters −% of Detractors = Net Promoter Score (NPS)
  5. 5. Customer Retention  The longer a company retains a customer, the cost to service that customer decreases, and the more likely they are to purchase additional products and services.  Some customer churn is unavoidable and, if handled properly, may even be helpful.  Strengthen customer relationships by understanding retention trends and the factors that contribute to defections. ©2013 Satrix Solutions 5 5% Improvement in Retention Increases profitability between 25 and 85% 5% Improvement in Retention
  6. 6. Reference Accounts  Determine the number of customers willing to serve as passionate references – it’s a good sign that your successful at building customer loyalty.  Verify your references frequently by using an unbiased party to guarantee those speaking on your behalf are actually “Promoters.” ©2013 Satrix Solutions 6
  7. 7. Sales Close Rates With extended sales cycles and more aggressive sales tactics from competitors, winning new business has become more challenging.  Recognize why deals remain in the pipeline or why your company wasn't selected.  Use facts to refine the sales pitch or adjust the way you approach new business opportunities.  Increase your chances of closing more deals by communicating high level details about your customer feedback programs.  Demonstrate how a real commitment to service excellence is your key competitive differentiator. ©2013 Satrix Solutions 7
  8. 8. Share of Wallet What percentage of your client’s budget is allocated toward the products or services your organization provides? Ascertain awareness by uncovering how much clients have earmarked for your offering. Research clearly shows that if customers are happy with your organization they will look to consolidate more of their budget with your company. ©2013 Satrix Solutions 8 Tip: Track the number of products or services purchased by each customer and closely watch how it changes over time.
  9. 9. Attain Service Excellence When correctly leveraged, ongoing use of customer feedback programs can help remove product and service pain points and strengthen client relationships. Focusing your attention on the customer performance metrics that directly correlate to financial growth is vital to your success. ©2013 Satrix Solutions 9
  10. 10. About Satrix Solutions We measure success by the results our clients achieve. Our customized customer feedback programs and highly flexible approach incorporates best practices obtained from our extensive experience to introduce discipline, rigor, and metrics to your feedback efforts. ©2013 Satrix Solutions 10 Evan Klein Founder & President 480.773.6120 Client Satisfaction Survey Net Promoter® Survey Client Advisory Board Sales Win/Loss Analysis Client Defection Analysis Employee Satisfaction Survey ®Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld