How long does it take time to satisfy a customer with the brand? A customer is the backbone of any business, and making customers happy and satisfied should be the first priority. Only a satisfied customer works as marketing to bring new customers by recommending products and remaining loyal for a long time, which contributes to business success.
However, customer KPIs and monitoring and tracking activities are the metrics to get insights and customer behaviors and improve the products. In this guide, I will discuss the metrics to track customer success. Let’s start!
Essential Metrics to Track Customer Success
Let’s get started to explore some essential metrics to track customer success.
Customer Retention Rate
Do you know what keeps the customer loyal to the brand? A high customer retention rate gives you insights into customer satisfaction and loyalty. Customer retention is about your existing customer who remains a customer for a period of time. However, if you want to keep them loyal for a long time, you must ensure to calculate the customer retention which helps you to know which products are what keep customers loyal.
Here is how to measure customer retention:
(No of existing customers % No of beginning customers) x 100
Customer Lifetime Value (CLV)
Customer lifetime value is another essential metric to track customer retention. It is all about how a customer has spent on a company’s products throughout life and helps to generate revenue.
This will provide insights about products and customer relations to know the customer purchase history of products to know which products have contributed to catching customers and generating more leads. Also, as a customer success team, you must know the other products that need improvement.
Net Promoter Score (NPS)
Net Promoter Score (NPS) tells you about customers’ happy behavior with your products and how they recommend products to others like friends or family. After all, a happy and satisfied customer can recommend products to others.
You can calculate the NPS for your customer by asking a question to give it a rating. “How likely are you to refer the product to your family or friends.” If a customer gives you 9-10 out of 10 this means they recommend, if they give you a 0-6 rating, this means they are not satisfied, and if they rate 7-8, this means they are just satisfied.
Customer Satisfaction Score (CSAT)
As discussed above, NPS gives insights into how customers recommend products to others if they are satisfied. CSAT is a little bit different, which means the customer satisfaction score determines how a customer is with the brand, their services, contact support and other aspects.
This gives the business insights into overall customer experience and satisfaction. For instance, you can ask your customer to express their thoughts about services, support, and overall interaction.
Customer Effort Score (CES)
Customer effort score tells us about customer experience with purchasing, payment methods, services or support to know who is difficult or easy to approach business. For example, if a customer purchases an item, you can give feedback to them on how easily they find the product or if they face any difficulty during payment or finding the product.
You can also survey your past and existing clients to know their satisfaction. These insights will give you an idea of where to improve customer satisfaction.
Churn Rate
As a business owner or customer success team member have you ever noted how many customers are no longer purchasing products? Yes, it is an important factor to track customer success. The churn rate will highlight existing or past clients who stopped purchasing products or services or canceled their subscriptions.
However, it is important to make a positive relationship with churned customers and tell them about your new products to satisfy them about the brand.
First Contact Resolution Rate
The first contact resolution rate highlights clients whose queries and problems were solved at first contact. If a customer’s problems are solved faster within a certain period, it makes them happy and satisfied with the business service and customer support centre.
However, if they have problems contacting the team or managing staff, then it will decrease the score of customer satisfaction. So make sure to solve the problems as soon as they contact you to build a positive relationship with them.
Customer Health Score
The customer health score is another essential metric to track customer success. It is about clients’ insights to know whether they find the products or services valuable or not. If a customer remains loyal for the long term it means they are satisfied otherwise it will cause to churn rate.
However, the business needs to measure KPIs regularly and track customer behavior to know their satisfaction. Also, if they find more score-churned clients then try to improve business services or products.
Summary
There are many various metrics to track customer success and make smart decisions about the brand. As a trusted and worthy company, it is important to monitor and measure customer behaviour, which will help you to know where you need to improve.
You must know how long the customer remains loyal or if they are satisfied enough to recommend the products to others. You can give feedback from your past or existing clients or surveys that will give you insights into what your customer thinks about your products or services.
FAQ’S
How do you measure customer satisfaction (CSAT)?
You can measure the CSAT through surveys to ask for customer rates; make a chart of five tables and write 1-5 words to choose one. For example, “Very Satisfied,” “Satisfied,” “Neutral,” “Dissatisfied,” or “Very Dissatisfied.”
Why is customer retention rate important?
Customer Retention rate highlights how well your product or service satisfies customer needs over time.
How do you calculate the churn rate?
Here is a formula to calculate churn rate: No of churned customers ÷ no of existing customers = Churn rate percentage.
How often should customer success metrics be tracked?
However, there is no specific time to track success but you can track your customer success weekly, monthly, or quarterly.
