If you improve customer satisfaction and loyalty and do not use KPI, then you are not doing it. According to the Global State of Multichannel Customer Service Report:62 percent of global consumers have stopped doing business with a brand or organization due to a poor customer service experience and 97 percent of global consumers claim customer service is either very or somewhat important in their choice of and loyalty to a brand.
Therefore, we must understand customer satisfaction and loyalty. Experts offer more than 20 types of indicators, but we will focus on 5.
1. Net Promoter Score (NPS). NPS measures whether current or former customers will recommend your products or services to others.
2. Customer Satisfaction (CSAT). The most popular KPI for measuring customer satisfaction is CSAT. You can evaluate their satisfaction with your business, product, or services. Your rating is the average of all customer responses. Your scale may consist of regular numbers, stars, emoticons, etc.
3. Customer Retention Rate (CRR). According to RJmetrics, the most regular customers receive more than half of their income from regular customers. CRR shows what percentage of your customers stayed with you for a certain period of time.
4. SERVQUAL. Method for measuring subjective elements of quality of service. Evaluation from customers compared to expectations. 5 elements of quality of service: Reliability, Assurance,Tangibles,Empathy,Responsiveness.
5. Customer Effort Score (CES). CES measures how much work customers have to do through an interaction with the brand. CES helps companies determine customer friction points and find ways to create a more seamless experience.
It is important not only to determine the KPI and correctly establish the causes and effects of the impact on financial performance. In case from Stanford professors the managers of fast food restaurants believed that the low turnover of all personnel affects customer satisfaction and company profitability. But after collecting the data, it turned out that satisfaction is not affected by all the staff, but only by restaurant managers and it is important to keep them.