For a company to have success, it is fundamental that the CEO, the maximum leader in the organization, can manage the team and have a scalable or expandable business model.
In face of this context, it is essential that this executive has key indicators – the so-called KPIs – that can measure performance, the performance of operations and, above all, the Customer’s Success.
KPIs: What are they and how can they help to measure the Customer´s Success
The KPIs (Key Performance Indicators) are key performance indicators fundamentals to a company’s growth strategy.
These tools are created from metrics (numbers that give general information about a business) and try to measure an established goal, such as Customer Success.
For normally being associated with some kind of goal, the KPIs help to identify which areas are achieving their objectives and which ones need support and revision.
In this way, its use in performance reporting is strategic to assess organizational performance, analyze consumer trends and increase company sales. They also allow greater communication between the company’s sectors and guide the managers in decision making.
How do KPIs help to measure customer success?
Managing KPIs has several benefits. Among them, it stands out: defining the indicators that will be used to monitor each company goal; monitor the evolution of each of the indicators; collect data periodically; analyze the performance of the goal, based on the evaluation of the indicator; identify areas for improvement and implement corrective actions.
According to the explanation above, when a company establishes a series of indicators, these KPIs are associated with business objectives, such as achieving customer success.
The monitoring of KPIs will show whether Customer Success is close to being achieved, whether the implemented actions are working or not and, finally, whether it is necessary to make adjustments to improve the results achieved.
Main KPIs to transform the customer experience in customer service
Customer success is a business philosophy that aims to achieve all the client’s goals in order to make a successful case.
As the consumer has become the main focus of cooperative strategies the term has been gaining more and more space in companies, since, when properly implemented, it is responsible for a good part of the increase in revenue.
Inside Customer Success, there are many indicators that should be constantly analyzed in order to guarantee the best results.
Thinking about that, we have listed the main indicators that should work in a company that wishes to transform the customer experience, leading to a true success trajectory.
Engagement
The engagement can be defined as the frequency of consumption by customers and the level of activity in relation to a product or service, such as how regularly an application is used.
In this context, analyzing the engagement KPI is really important so that the CEOs understand which is the engagement level that the consumers have with the solution, in addition to identifying optimization opportunities.
Following the engagement can be fundamental to the business survival. Mostly, the ones that work with recurrence-based digital products (plans, signatures, etc.).
Having a base that performs activities with recurrence can indicate that your solution delivers a good experience and satisfaction. As can also mean that the product effectively solves customer’s problems.
Therefore, the engagement KPI analysis allows us to understand if consumers with the right profile are reaching the solution, thus being able to contribute to the acquisition and retention rates.
In this scenario, it is worth reminding that retention can be significantly improved, as the data helps in the process of improving and developing features.
However, it is fundamental to make clear that there is no recipe about what engagement actually is.
Therefore, it is necessary that each company defines which are the user engagement indicators (e.g., number of likes, clicks on posts, comments, application usage) and, most importantly, constantly monitoring this data to know when success is being delivered and when the user is dissatisfied.
In this context, it is worth highlighting that an engaged customer is the one who not only consumes your solution, productor service, but also enjoys and interacts with all the possibilities and advantages that your company offers.
Churn Rate
Building a relationship with the customer is one of the biggest business challenges today.
Because of that, a company’s purpose should always be to solve the consumer’s problems. After all, customer retention is one of the most beneficial ways for the sustainability of your business.
One of the main KPIs to follow this is the Churn Rate. The Churn it’s nothing more than the dreaded churn rate, a metric that indicates the number of customers a business loses in a given period. Generally, this rate is calculated monthly, annually or semiannual.
One of the ways to calculate the churn rate is on top of the percentage of accounts that are canceling contracts compared to the active customer base. Suppose that during the month, 5 customers canceled your product, while another 100 became subscribers. You will divide 5/100 = 0.05; And then multiply the result 0.05 x 100: your cancellation rate would be 5%.
The idea, in this case, is that when analyzing the Churn Rate, the CEOs can anticipate a possible churn, increasing the chances to retain and engage the consumer.
It is worth remembering that the reasons that lead the user to cancel a service occur recurrently, and not overnight. Therefore, the Customer Success team cannot wait until the decision is made, as, in these cases, regaining the customer’s trust and reversing the situation is very difficult.
NPS
The Net Promoter Score (NPS) is a KPI that indicates the satisfaction level and customer retention. Although being a simple parameter, this indicator is really valuable and generates great insights for the business.
With only two questions, one main and one complementary, it is possible to obtain valuable information about a certain product or service.
For example: “On a scale from 1 to 10, what is the probability of you indicating my company to a friend or acquaintance”. With this simple question it is possible to extract an evaluation for the product, in addition to attributing a value of trust between the customer and the company.
The complementary question could be made in this model: “What has motivated you to give this grade?’. This will bring the necessary insights so the CEO can train their team on how to improve and optimize the services, based on the customer’s experience, from their point of view.
Health Score
The Health Score, or Customer health, is one of the most important KPIs that CEOs should analyze. Its objective is to reduce the churn.
To evaluate this indicator, it must be created a customer satisfaction classification, based in the grading, in order to obtain a healthier ranking (less chances of churn) to a less healthy ranking (bigger chances of churn).
This helps to perform effective actions in the short, medium and long term, and to identify which customers need more attention, or which are more engaged and are potential promoters.
CSAT
Customer Satisfaction Score (CSAT) is the KPI responsible for analyzing the percentage of customers satisfied with its brand in different steps of their journeys. Some examples are: the provided service, a product, a service, a solution or a functionality.
The results can be used to improve the customer’s experience, improve the relationship with the company and the image that he has of the brand.
The CSAT works through simple and direct questions, such as “What is your satisfaction level with the service that you received?” or “What is your satisfaction level with the results gained with our solution?”.
The questions should be evaluated by the customers and can receive grades from 1 to 5, or 1 to 10, in a scale where the 1 is something like “totally unsatisfied” and 5 or 10 “totally satisfied”.
There is still the possibility to use non-numeric alternatives, such as totally satisfied, satisfied, indifferent, little satisfied and totally unsatisfied.
Here, it is fundamental to highlight that the consumer’s analysis should be required as soon as the interaction is done, that is, at the end of the service, when the product is delivered, or at the end of other steps of their journeys.
The way to calculate the CSAT is directly related to the evaluation choose by your company. For example, if the choice of rating the level of satisfaction is numerical, we can carry out the following process:
- Add up all compatible ratings from satisfied customers.
- Divide this amount by the total number of answers.
- Transform the final value into percentage.
To make it clearer, check this exemplification:
A company has performed 800 CSAT´s surveys and gained the following evaluations:
- 50 customers have answered 1, which means “really unsatisfied”;
- 100 customers have answered 2, which means “unsatisfied”;
- 70 customers have answered 3, which means “indifferent”;
- 300 customers have answered 4, which means “satisfied”;
- 280 customers have answered 5, which means “really satisfied.
In order to calculate the CSAT we will add the number of customers that answered 4 and 5, that is, satisfied and really satisfied, and then, divide by total surveys and transform into percentages.
Thus, we have:
- CSAT = (300+280) / 800
- CSAT = 580/800
- CSAT = 0,725
- CSAT= 72,5 %
The level of the company’s Customer Satisfaction Score that we use in this example is 72,5%.
DNK is number one in solutions focused in CX for Contact Centers and Call Centers
Aligned with the market trends and needs, DNK offers the best solutions for Call Centers and Contact Centers, being specialized in the development of high-performance products, services and solutions for companies in the area.
The use of last generation technologies aligned with a team of experienced professionals, took DNK to constantly innovate to transform the experience of clients and partners with their consumers.
DNK cherishes excellence in customer service, providing their partners tools and platforms with innovative and customizable functionalities in order to guarantee an unforgettable and satisfactory CX.
All DNK´s solutions are intelligent and provide real-time performance reports, which helps leaders and operators to analyze KPIs and identify possible optimizations in customer service.
Besides that, DNK constantly conducts satisfaction surveys to improve their service more and more, based on its customers opinion.
With DNK’s services and products, the customer service is provided through an integrated omnichannel platform, which connects all service channels (whatsapp, voice, web, chat and others) with fast recovery of client’s information and data, in order to offer a complete and satisfactory management of the client journey with differentiated results, maximum security and in accordance with the standards required by the LGPD.
The company is recognized by the market and awarded for solutions and successful cases. Champion of the “Best self-service Solution” category in the XXI Modern Consumer Award and winner of the silver trophy in Client SA 2020 Award in the category “Leader in Innovation Strategy”, in partnership with a client, DNK understands that a well-attended customer is the secret for the success of the service.
